Networking Brings Value At Real Estate Investment Clubs

Networking - How valuable is it? Picture by Corey Robinson

Real estate investment clubs are an invaluable resource for investors of all experience levels. Whether it is finding a seasoned professional in the area to be a mentor or forging partnerships for future opportunities, real estate investment clubs offer a low cost opportunity to build substantial and lucrative contacts.

What can I gain from a real estate investment club?
Real estate investment clubs can provide you with the “in” you need for the markets you want to invest in. Many members have long-term experience in the market and will be able to share their experiences with you. Many clubs also offer professional development courses as part of their regular meetings that can offer you tips and tricks for use in your own investment strategies. It also will provide you with a common ground to talk with other professionals in the area that have similar experiences and interests.

If you are new to real estate investing, these clubs are great for introducing you to people who have worked with private investors. Additionally, many club members have years of experience in working with a wide variety of financial products including private financing, credit partners, conduit lending, mezzanine lending, and government backed mortgage securities like Fannie Mae, FHA and Freddie Mac. These meetings offer informal ways to pick the brains of the pros in your area and be introduced to their financing contacts.

How can I network at a real estate investment club?
As the old real estate saying goes, it’s all about “location, location, location.” If you attend the meetings, you gain the exposure.

To get value out of a real estate investment club, you should:
• Contact the group president or membership officer to find out more about the club. If the club is focused on strip malls and you focus on multifamily properties, keep looking.
• Ask to attend a meeting.
• Once you’ve attended a meeting determine if you like the structure of the group. If it seems like everyone was trying to sell something or you don’t like the founders, keep looking.
• Once you’ve decided that you like the group, become a member.
• Take business cards.
• Dress professionally.
• Introduce yourself to every person there and exchange business cards.
• Send a thank you email or note to every person with whom you exchanged cards within 2 days.
• Ask to present a success story or lead a seminar for the group.
• Attend any local area conventions or affiliated meetings.
• Become a member of the board.

Networking can also provide you with investment opportunities you might not otherwise know about. Regardless of market conditions, investment properties are always available. However, finding the properties and opportunities can be an arduous task. The informal sessions at the clubs will provide valuable conversations on investment options that others may have passed up or do not qualify to invest in.

I’ve been investing a long time. What other tips can I use from real estate investment clubs to grow my business?
If you are a seasoned investor, than you know the more people you maintain relationships with, the more likely you are to prosper. If you regularly write articles for real estate press or maintain a real estate blog, ask to add your contacts from the club to an email list or listserv. Sending relevant articles about the market or your experience is a valuable way to build your credentials as an expert investor. Remember that if you do regularly email a list of people, you first need to obtain permission and provide an opt-out feature. Additional requirements may be necessary according to the appropriate state laws.

How do I find a real estate investment club?
There are several Internet and print resources available including:

http://www.nreiclub.com

http://www.creonline.com/clubs.htm

As with all inquiries, do the appropriate research.

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