Real estate investor association clubs can be a great way find great deals. The clubs offer numerous educational opportunities and networking opportunities as well. The groups can be free or some have a membership fee. Like anything in life, you get what you put into it. If you are willing to go to meetups, talk to other investors and ask for help you will get much more out of it than sitting in a corner and not saying a word.
What are real estate investor association clubs?
REIA clubs are clubs for real estate investors to mingle and share ideas. Many REIA clubs have monthly meetings with guest speakers who are experts in the their field. I have spoken at a couple of REIA club meetings to discuss HUD homes and how investors can get a great deal on them. There will be lenders, real estate agents and many other investors at REIA club meetings.
How to find wholesalers at REIA clubs
There are many wholesalers at real estate investor clubs who could be very valuable to any investor. A wholesaler finds properties to buy, but usually does not want to fix and flip the house or rent it themselves. They want to flip the property quickly and in some cases without even buying the house. Wholesalers prefer to sell or assign their deals to investors and many times the houses are sold well below market value. At the time of writing this article, I had never bought a house from a wholesaler, but a few investors at the meeting used wholesalers quite often. Since then I have purchased homes through wholesalers. I also have heard many, many stories online about great deals investors have found through wholesalers. One of the main reasons I attended the meeting was to meet wholesalers and to start building relationships. A key ingredient to any investor’s successful strategy is finding properties at below market value. I hope wholesalers can help me improve my long-term rental strategy.
Wholesalers find properties in many ways including through the MLS. They will get a property under contract with an assignable contract, then shop the deal around to their investors in hopes they can assign it over to the investor for a fee. Wholesalers also use direct marketing and bandit signs to find motivated sellers that do not have their home on the market. A great wholesaler and a great investor can make a great partnership. The wholesaler may not have enough money to buy and fix up a property, while the investor may not have the time to put together a marketing plan to off-market sellers. Together a wholesaler and investor can solve both parties needs.
There were three wholesalers at the meeting and they all seemed to have potential for great deals. One woman said she will be getting the chance to sell a package of REOs before they are listed on MLS. I am always cautious when hearing about deals like since it seems to good to be true. We did exchange cards and I will see what happens!
How to find hard money lenders at REI clubs
Pine Financial, a hard money-lender put together the last REI club meeting I attended. I don’t use hard money because it can be very pricey, but it is a great option for those just starting the business with little capital. Meeting lenders and learning about financing options is another great benefit to a REI clubs. We also talked about local portfolio lenders and how investors are financing their deals.
How to learn about local strategies at REI clubs
REI clubs rely on their experienced investors to provide information and strategies for other members. Many strategies and pointers were given at the meeting and if I were a new investor I would have taken notes the entire meeting! Margins for fix and flips, where to find deals, how to use direct marketing and many other items are discussed in detail.
How to find real estate agents at REI clubs
There are also real estate agents who focus on investing and helping investors at REI clubs. If you are looking for an agent who specializes in working with investors, a REI club is a great place to find one. One of the presenters at a meeting I recently went to was a local Realtor who gave us great tips on finding deals and showed us many deals in the area that could be found on MLS. Here is a great article on how to find a Real Estate agent.
The more people you know and the more people who know you are investors, the better chances you have of someone bringing a deal to you! What is better than having someone doing all the work for you and bringing a deal that you can make a lot of money on. A REI club is a great way to meet wholesalers, investors and real estate agents that can help you become a better investor.