- · Community
When you join a real estate investment club you join a community of people that want to do exactly what you want to do. That is a huge advantage. You are allowed to network in these clubs and talk to other investors. That means you talk about what they're doing, what they've done, and what they would like to do. You learn from their mistakes and learn new techniques and strategies. Imagine meeting someone that's looking for a rental property; write down their info and go find them a rental property. You go buy a deed to a $100,000 for $20,000. Do a little fix-up then sell it to your new friend for $50,000. You made a profit and your friend got a great deal on a property.
- · Education
Real estate investment clubs often provide excellent education to its members. It may be just a newsletter, blog, handouts, or advanced education or training. There is much to learn about every real estate strategy and we would be wise to learn as much as we can from those already successful. I read an article about real estate investment clubs and one of the comments by a reader said this:
Many of the investment clubs which are popping are there for one purpose only - to make money. They bring in a guest "guru" to do a one-hour talk then a sales pitch to buy their latest course or seminar.
What's wrong with that? You learned a little bit about a strategy that this guy specializes in. Some may want to pursue it and some may not. You don't have to do a thing. I have an attorney friend that regularly spends tens of thousands of dollars on educational seminars on different legal avenues. He has no problem spending the money on those seminars and education because he knows he will make that investment (key word) back over and over because of his newly acquired knowledge. He didn't have to buy a thing and neither do any of us, but sometimes it takes investing in oneself to progress. What an amazing concept.
- · Investment Opportunities
Aside from the opportunities presented in the first point above (opportunities created by you) there are often excellent investment opportunities to members of real estate investment clubs. Other members may present investments or the club itself may present investments. You do not have to buy a thing but the opportunity is there for you, if you choose. One advantage to buying these properties is they are often given a preliminary evaluation to determine whether the property is a good investment or not. If the club bought it then there must've been something good about it. This doesn't mean you buy it blindly but you research it and determine if it meets your criteria. "But the club or other investor will make money if I buy from them!" said the example lady from above. You cares?! You want to make money, too. That's what investors do. If they bought a $20,000 property for $1,500 then sold it to you for $3,000, is that okay? What if you could sell it for $7,000, like the similar property next door just sold for? That's an excellent deal. The investor made a quick $1,500 and you made $4,000.
Some disadvantages might be:
- · Cost
There may be a cost to join or maintain membership with a real estate investment club. That's okay. If you feel it is worth it to rub shoulders with other investors then continue on. If you don't, then cancel your membership. I'm sure you won't hurt anyone's feelings. Consider it an investment in yourself and your future. Learn what you can then evaluate continued membership.
That's all I have for disadvantages.
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