Assess Your Needs and Knowledge to Make the Decision

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The right real estate investment clubs matched properly to the novice real estate investor have helped many to launch successful real estate investing businesses. On the other side, many a would-be investor has failed and lost money by joining the wrong club and buying services and business plans that didn’t work for them.

Do you need the support of a group? - People are all different. Some tend to learn faster and better alone, and others do better when they have a group from which to draw knowledge. There’s also the fear of the new and unknown when beginning a new business. Those with doubts or concerns will usually do better with the support of a peer group. Try a couple of meetings before paying any dues to see if you think the group thing is for you.

Who founded the group and for what purpose? - Most clubs will state their purpose as helping new real estate investors to get into the business and make it a success. Look at the history of a club to see if it was founded by actual investors or by vendors who sell seminars, tapes, videos and books to investors. It’s not necessarily a bad thing to have vendor founders, but there could be more profit motive than education in this type of club.

Look at the current membership - Related to the previous item, who are the members of this club? Are more of them vendors, mortgage brokers, trainers and service providers? Or is the majority of the membership regular investors? The networking benefits of a real estate investment club require vendors and service providers, but membership heavily weighted that way may mean other investors haven’t found it to be a value to join and stay with that club.

Are speakers always selling something? - Knowledgeable speakers with valuable information are one of the benefits of a real estate investment club. But, if every speaker seems to be pushing a product or service more than imparting information, then you might want to look elsewhere for your group support.

What is the primary focus of club? - If you’re planning on investing in duplex or four-plex rental properties for self-management, then you might not want to join a club primarily focused on strip mall or office complex investments. Some clubs clearly state their charter, while others may have gradually taken on a focus that isn’t apparent until you’ve attended a meeting or two.

Many successful real estate investors attribute their success to the help and motivation they received as members of a real estate investment club. If you are considering joining one, there are probably choices in your area. Attend a couple of meetings and get a feel for the club before you commit to dues.