Real estate investor associations….are you a member of a local real estate investing group? Have you ever wondered whether or not you are getting the facts about how to become a successful real estate investor or whether you’re being sold bunk deals by those running the association?
It’s really unfortunate that we have to write a real estate related blog post that questions the core of what people are being taught or not being taught when attending local “real estate investor associations.” First, we would like to explain what prompted this post. As local Dayton real estate investors, we are contacted daily by individuals wanting to learn how to safely and properly invest in real estate. Many of these individuals have attended local real estate investor associations looking for information and advice from a person or persons who have years of documented success as a real estate investor. What these eager students (future real estate investors) are coming away with is, inaccurate data and misinformation.
Real Estate Investor Association (Pitch & Promises)
While attending your local real estate investor association meetings, you’ll want to be open to networking but skeptical of sales pitches and promises of riches through real estate investing. There is a reason I am asking you to be “skeptical” while attending real estate investor groups, circles and associations. Skepticism of anything, generally leads to questioning everything! The more skeptical we are of something, the more likely we are to research that something. In the world of real estate investing, “research” is what separates winners from losers. Most of the people (students) that we come in contact with, can not afford to make more than one or two bad real estate investments before financial ruin sets in.
Is My Local Real Estate Investor Association Legit?
How do I tell if my local real estate investor association is legitimate? Well, for beginners, you should ask the leader(s), speaker(s) and guest(s) to provide details on their latest investments (rentals, fix & flips & wholesale deals). If they can not provide you with some of their recent deals, why would you expect that they can provide you with the knowledge and understanding needed to find and close your own real estate deals? Another sure way to tell if your local group, circle or association is legit is to:
- Ask other members how long they have been attending?
- Ask other attendees how many real estate transactions they have completed?
- Are you being charged anything to attend association meetings?
- Are the areas largest most successful real estate investors members of your local association?
- Is pertinent information being shared at the meetings or just a gathering of social butterflies?
Does The Association Benefit More Than The Members?
If you’ve ever been to a local real estate investor association meeting, you’ve probably thought to yourself, “Why is this person willing to give me all this information?” Believe me, you are not alone! Generally, the association president or board member who is holding the weekly, bi weekly or monthly meeting is a local Realtor, real estate agent or real estate investor who benefits in the following ways:
- He/She tries to sell you on their own real estate listings
- He/She wants you to use their service when buying investment properties
- He/She wants to represent you in all future real estate transactions
- He/She gets a “kick-back” by introducing you to their lender friends (illegal)
Of course, this is not always the case! But, you have to wonder why someone is so willing to provide information on “how to be a successful real estate investor” to others who are going to be working in the same market. Generally speaking, real estate investors do not like or want to create competition in their direct market place.
Our Suggestion To New Real Estate Investors
As local real estate professionals, we love talking to individuals about real estate investing. We also don’t mind sharing information and our ideas of what we think it takes to be successful in today’s market. If you are interested in becoming a full-time real estate investor or just casually buying a couple properties that generate passive income, we suggest gathering as much information as possible, asking lots of questions and surrounding yourself with a successful local real estate mentor/coach.