If you are new to real estate or are a veteran looking to network with others in your community, you may want to consider joining a real estate investors association. What is a real estate investors association? Not to be confused with a REIT where investors pull money together to diversify and mitigate risk, a real estate investors association is a group that meets usually once per month to discuss all things real estate. These meetings can consist of everything from networking, to monthly speakers, to best practices but not all real estate investors associations are created equal.
It is important that you find a real estate investors association that’s more interested in giving its members value, instead of selling them courses. If you have considered joining one of these associations, below is a list of ways real estate investors associations should be giving value to its members and guests:
This is typically true of all real estate investors associations. Networking is potentially the #1 reason people join real estate associations. Real estate can be a lonely industry, especially if you are self-employed. Networking at these groups can provide that sense of team that so many real estate investors need at times. By joining a real estate investors association, you can have the camaraderie of a brokerage, without having to sacrifice your own time and money.
- Gain knowledge of best practices
Just getting started in real estate? Just finished your first deal? Been in real estate for years? No matter what, it’s important to understand that you can’t always know everything. Maybe you really understand how single-family units work but you want to invest in multi-units or commercial properties. Maybe you understand all of the financial aspects of real estate but you are about to start your first rehab project. Maybe you know everything about home buying and rehabbing, but you have questions about zoning regulations. Real estate is an industry where “not knowing” can cost you thousands of dollars.
By networking with others in the industry, you can learn best practices for areas that you are unfamiliar.
- Become familiar with regulations
Like we discussed in the previous point, you could build the perfect house, but if you violate regulations or the house has zoning issues, you could be faced with huge problems. Typically, every real estate investors association will have at least a few zoning experts that can help in these situations.
If you are looking for partners to do deal with or you are looking for working capital for a new project, a real estate investors association can be a great resource. These are people that are already doing deals themselves and are always looking for more deals. If you can offer them equity or value within the deal, it may allow you to rehab a home that you would have otherwise had to wholesale, bringing you greater profits.
No matter what level you are at in your real estate career, a real estate investors association is always a good idea. The important determination is finding an association that gives you more value than the cost of your investment. All real estate investors associations have some fees to keep the group going, but if those fees can lead to you making thousands of dollars in new deals, it’s a win-win for everyone. Try attending a few meetings before you decide. This will give you the opportunity to see exactly how each group is run and how they give value!