How has your local real estate club helped you become a better investor?
How about a $36k profit on a deal referred to me by someone in the club that I bought on Wed and sold on Fri? Clubs are about networking more than anything else.
Fadi is right on and it’s also where most people miss the mark on REIA clubs.
When I was a member of a club, it always amazed me when I got with a certain group that complained that the “club” wasn’t doing anything for them, and they always looked at me like I had three eyes when I’d say that the club doesn’t “work” for anyone. YOU have to work the club.
Get there early, stay late. Talk to EVERYONE. Let them know what you do, what you want and how to get it to you. Take people out to eat. Let them take you out.
Just one deal of several that I made through a club. I was referred to a little house I picked up and over the course of 4 years of leasing, made about $35K on. While I was out looking at this deal, I noticed another property in the neighborhood that was overgrown. Got the info on it and made an offer that was accepted same day and resold 30 days later for $10K profit. $45K from one phone call that cost me $250, the requested referral fee.
Raj
From the various posts, looks like Roger and I think a like.
I volanteered to give orientation sessions to new investors for our local club. My main focus is going to be to set their expectation upfront of what the club has to offer. They will be sold to every month by a guru… it is up to them to decide if they want to buy or not, but what is most important is that they network and get to know people.
Majority of what I have picked up about my local market came from networking. There were so many times where I picked up the phone and called another investor I knew in the club to ask about a neighborhood, or a form, or an advice and vice versa.
Good investors understand that it is not competition… it is actually working together and that was the whole idea behind the clubs.
You will learn how money is made… but it is up to you to make the money.
It took me long time to get to this point, but it is well worth it…
I went to my first meeting of the local REIA earlier this month. I thought I would meet a bunch of other investors and I would have the opportunity to talk with them and network. When I got there I was surprised to see between 100 and 200 people. It was impossible to talk with everyone… And they also had tables where related business (lenders, insurance companies, property management companies, etc.) where presenting their products. I spent more time talking with those folks than with other investors… After I left I felt I had missed an opportunity to meet other successful investors.
I am going back in the beginning of August. This time I will be more focused and not shy to talk with others. I guess I had to get my feet wet in the first meeting. Now I know what to expect and I feel I will do better… :O)
I also joined two subgroups (one for new investors, and another one for people who invests in rentals). Those are smaller groups that I believe will be easier to meet people. I went to the new investors meeting last week. It was a good meeting. I had the opportunity to talk one-to-one with other investors… I am looking forward for the other subgroup meeting next week.
Anyway - I am still confident that joining your local club/association is a good thing. In my case, it will help me come out of my shell and meet people… :O)
Good luck!
It takes time to build up your network 
make sure you get to know the good ones, not all the beginners. Avoid hanging around those who complain a lot or they will demotivate you quickly! The subgroups are excellent because it is smaller group of people…
If anyone in the San Antonio area, come to SAREIA’s meeting at 6pm, I will be giving an orientation for 45 mins.
Since im so young (19), ive been thinking of looking for a mentor that will take me under his wing and show me how to invest in properties whether it be rentals or flips. Is it to much to ask to look for someone like this?
If you can find someone who does most or all of their own rehabbing, see if you can help them. You could earn some money and also help them to complete their project sooner. While you’re working together, you can discuss some of the deals they’ve completed and how well the deals worked out for them.
If you figure out what you want as your niche, you can start researching your current market, what lenders will require from you, and what properties may be possibilities for your business.
j1dias,
If your club has attending members in the 100-200 range, then it is probably a good idea to start with a subgroup to build on. That said, you said that it was “impossible” to talk to everyone there. I disagree.
If the meeting/networking starts at, let’s say, 6:30p, you need to be there at 6 SHARP. Help the vendors setup. As people start coming in, you should be there at the door greeting them. “Hey, how are you? I’m J1dias (hand out biz card), and you are? Are you an active investor? Really? Sounds good, we should get together sometime.”
After the meeting, hang around the door again. Try to catch those you missed going in and recap with the others as they go out. On most occassions at mine, our meeting was over at 8:30p and I rarely left before 11p.
Raj
Raj - you are right! I will get out of my comfort zone and do it in the August meeting. Before this month’s meeting I even thought I could use the fact that I am a realtor to break some ice… I have something to offer to other real estate investors and I felt I could use it to establish some relationships and learn by helping them with their deals. However during the meeting I didn’t talk with other investors. I attended the presentations and talked with some of the vendors. I didn’t actively seek other investors… Do you believe I had a pocket full of business cards and I didn’t use any of them? So much for networking… :O)
Thank you again for the advice.
One piece of advice on using your Realtor as an ice breaker, you’ll have to decide whether you want to be considered an agent at the REIA or an investor. Most investors, wrongly, presume that if you’re an agent and an investor that you’ll scoop up all the good deals and only give them what’s left.
Raj
Raj - interesting. I don’t have an answer to that as I haven’t tried it yet. I will keep it in mind when talking with other investors. Thank you.
Yes, my REIA club has definitely helped me become a better investor. In fact, when I first joined, a local successful landlord took me under her wing. The things I learned from her saved/made me tens of thousands of dollars (at least).
J1Dias,
Another thing to consider is that many of the successful investors at your REIA meeting will be working at the meeting. They will be at the board meeting; greeting newbies; speaking, etc. So, one way to meet these successful investors, especially at a large REIA, is to volunteer to work at the meetings. That way, you’ll be working along side these successful investors and can get to know many of them.
Good Luck,
Mike
Wow… this is an excellent idea… I am sure they need help. who would turn down help for free… :O) Thank you.
I second that! Thank you!
So this morning I found out that my local REIA will have a deal maker’s meeting on the 5th and a member benefit orientation lunch on the 9th. I registered for both events. Free lunch on the second… :O)
The deal maker’s meeting is to put together buyers and sellers in an organized way. I am hoping it will be a good opportunity to meet other successful investors and see what wholesalers are offering here.
Thank you.
So yesterday I went to the deal maker’s meeting at my local REIA. Although the properties presented did not fit my criteria I had the opportunity to talk with few wholesalers and one private lender.
I had to force myself to go talk with them. My first reaction when I received the package with the list of deals being offered and I realized that none fit my criteria was to go home. First I approached one of the 2 private lenders and started asking questions regarding financing. They basically focus on fix and flip loans, which is not exactly what I need. However it was good to get the information and have their contact in case I come across an opportunity that would make sense to use short-term financing.
Anyway, they charge 1.5% origination fee and 9.5% interest only for 6 months. They loan up to 90% of the purchase price + repairs for properties where LTV is no more than 80% of ARV. I talked with one of the owners and he seemed very reasonable and professional. The catch seems to be that if you don’t pay them off within 6 months, they charge you an extra 20 basis points for the next 6 months.
The other private lender quoted a rate of 1% per month for the first 6 months.
At first I thought that the second one (the one that quoted 1% per month) had a better rate than the first one (9.5% interest only rate). Only now after running an example I realized that the 1% per month corresponds to a 12% rate. Interesting what these guys do to present their terms in a positive light… :O) Take away - we need to run the numbers for each deal. The 1% monthly interest rate seemed very good until I put it in paper and ran the numbers… :O)
So it was good to get a sense of what private lenders are charging in case I need one.
I also talked with wholesalers. It seems that if I want to find a decent deal that will cash flow I will need to continue to look myself. When you account for the wholesaler profit, the deal doesn’t make sense. They are typically wholesaling 3 bedroom/1 bath houses that would generate rental income of approximately $800 for $62k to $70k. At those prices the mortgage would be $412+ (considering 30 years @ 7% which I am not sure I could get for NOO). This before the cost of repairs. To get the houses in the lower end (62k) the investor would still need to put $10k to $30k in repairs.
Anyway, overall it was a good experience. Smaller group of people than the big REIA monthly meeting. I realize that I will need to keep at it and keep forcing myself to network and talk with others. I am definitively out of my comfort zone… :O)
Tonight is the buy and hold subgroup meeting… I am looking forward to that.
Have a nice day everybody!
My club also helped me developing a good base.