We’ve had quite a few articles on the blog lately about investment clubs, and I thought it important to share my $0.02. One of the best resources for a real estate investor is your local real estate investing club. These groups can be great resources for networking and learning, but you must be careful, as there are some kinds of clubs that exist with the sole purpose of splitting you from your money, Here’s a quick look.
Lets keep in mind that we’re looking at two types of club here.
The Bad Real Estate Club
The first club is basically one designed so the founders of that group can boost their egos or split you from your money. They are usually based completely upon the group’s founder’s accomplishments/brand and the goal is typically to sell their books, software, programs, etc. I’ve attended meeting of several of these “bad clubs,” and couldn’t get out of there quicker. Most of them spent a tiny fraction of their time talking shop and the bulk of their time pitching some kind of “opportunity”, which was typically a real estate deal that any experienced investor would have avoided like a plague. These are the bad clubs! Stay Away!
The Good Real Estate Club
The second type of club usually fosters an environment suitable for learning & networking. These clubs will typically have speakers or other presenters who provide educational information on various subjects. These clubs are usually comprised of people from all aspects of real estate (from professionals to investors to homeowners) who are looking to both network and learn. Most of these groups have time before or after the formal meeting for networking; this is probably the most important part of the meeting, so be sure to get there and bring your business cards! These are the clubs you want to be a part of.
In conclusion, if you’re looking to join a real estate investing club, check the club out before shelling out a years’ dues. Membership in one of the good kinds of real estate clubs can be a boon to your business, and for the newbies, a great help in getting started investing. Membership in a bad club will leave you with a bad taste in your mouth, and hours of wasted time.
Article Author:
Joshua DorkinJoshua has written 539 articles for us.
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BiggerPockets.com was founded by Joshua Reed Dorkin in August 2004. An entrepreneur, web designer, real estate investor, and one-time realtor, Joshua was not satisfied by the online offerings of other real estate sites out there, and decided to build one himself. Mr. Dorkin's vision for BiggerPockets has helped to propel it into becoming one of the top real estate destinations online. His vision for the site and its future has brought national press attention to both Mr. Dorkin and to BiggerPockets.
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Absolutely correct Josh. I’ve posted more than once about real estate clubs and how to get the most out of them. The most important thing is to go in with your eyes open and know what the true agenda of the club is.
Right on, Richard!
I’ve heard of so many people getting taken in by scams, this is great advice.
Sharon Hollas – Surrey Real Estate
I’ve only been to one Real Estate Club and it fell into the “Bad Club” category. I was surrounded by Newbies and the founder spent a lot of time talking about his $500 weekend classes. I couldn’t wait to get out of there.
There is just something about real estate investing that attracts lots of gullible newbies and gurus willing to coach them to success.
I think another big issue that needs to be kept in mind is researching exactly what the investment clubs attachments are to developers and sellers and whether decisions are made on investments or relationships
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I work with a person who has missed two mortgage payments on purpose to quallify for morgage bailout. I thought this action was being policed to stop people from taking advantage of tax payers money.He had a wonderful Christmas because he spent his mortgage payments on gifts. This entire mortgage was brough about by greed. How can we get out of it by allowing greedy people to continue in this direction?