You’re about to discover the “skinny” on real estate investment clubs. From how they operate, to what to watch out for as well as how to optimize your experience at the club meetings. Plus, you’ll learn how to locate the club nearest you. This is information you’ll probably hear nowhere else because I come from an unbiased perspective. I don’t run my own local club, but I know some who do. I have also seen over a lifetime of experience, the good, the bad and the ugly of real estate investor clubs. There are definitely pros and cons and the follow training will unveil those to you. So whether this is potentially your first introduction to the concept of clubs related to real estate investing or if you have faithfully attended them from years, before you attend your next meeting, make sure you watch the following video from start to finish.
Are Real Estate Investor Clubs a Productive Use of Your Time?
Real estate investment clubs have been around for decades and most are non-profit associations whose members gather together monthly to share ideas and network with other investors and real estate professionals in their area. You can find them all across the country, with the larger cities having much larger groups, or even multiple clubs throughout the city. On the surface, real estate investor clubs can seem like the ideal place for meeting and connecting with fellow local investors. However there are some things you need to watch out for and some rules you will want to follow in order to optimize your networking experience.
When I first began my real estate investing journey, I attended every monthly real estate investment club meeting I could. But I soon discovered, that the most successful investors in my area were not attending these meetings. As I began to look around, wondering where they all were, I started to notice a few things about the other attendees around me. It was then that I realized that the majority of the people present at those gatherings were beginners just like me and getting tips and ideas from them was like the blind leading the blind!
Soon after, I was fortunate enough to hit a huge breakthrough after talking with a very experienced local investor that wasn’t a member of my local real estate investing club. I discovered that the true reason why he was not attending any real estate investing meetings was because he did not want to share the secrets he was utilizing to make a ton of money.His question to me was, “Phil, why I am going to take time out of my busy schedule to go create competitors?” Instead, he chose to join a community of top investors from across the country to network and share ideas with because he knew he wouldn’t be creating any local competitors.
While this made perfect sense,in my early years of attending real estate investor club meetings, I was fortunate enough to find a dynamite hard money lender and a terrific closing company that helped me close some of my first creative deals. So I believe that just those two contacts alone made it all worth the time and effort I spent in my club member days.
Many years later, after mentoring thousands of real estate investors from all across the country and witnessing their experiences with investment clubs, I have developed two simple rules for dealing with real estate investor clubs:
Rule # 1 – Loose Lips Sink Ships:
Always pay close attention to what other members are saying, and feel free to ask questions, just keep the talking on your part to a minimum. It’s OK to collect ideas from others but resist the temptation to share ideas on what you are doing and what you know. That might sound counter-intuitive and is the opposite of what many others teach, but it’s the truth. The spouting whale gets the first harpoon.
On a local level, when you share your good ideas and learning lessons at investment club meetings, you are empowering the competition. On a national level, it actually helps you tremendously. The students in our program benefit greatly from others in the group because everyone is scattered across the country. If someone takes and applies your ideas to their market, it does not effect your market.
Rule # 2 – Network Strategically:
If you attend a local club meeting, have a goal in mind as to what type of vendor you are looking for; whether that be a hard money lender, a closing company, a mortgage broker, a real estate agent, etc. Center your attention on locating and networking with just those vendors that are critical to your business. Aimless networking may eat up your time with nice people who may not be a good fit for helping your business and may prevent you from reaching the most important players in the room.
Real Estate Investment Clubs CAN BE a Productive Use of Time When Used Correctly
If you follow those two rules while attending meetings you can help to ensure that you are using your time wisely and beneficially. Try to spend your time listening, and networking with the right people. Listening to other’s experiences and failures, can even help teach you “What not to do”, just don’t expect to learn everything there is to know about real estate investing, because most of the other members are novices just like you. If there are successful real estate investors in the room, odds are they will remain tight lipped, and you should do the same.
If you are interested in locating a local club near you, I have compiled an up-to-date list of clubs throughout the United States.
I would love to hear your thoughts and experiences with your local Real Estate Investment Clubs. Did you find them to be a productive use of your time? Or were you disappointed in the plethora of inexperienced investors? Feel free to share in the comment section below.