Are you on a real estate investing journey but unsure of where to start or who to trust? I get it; there’s a lot of information out there, and plenty of gurus are selling their knowledge for a significant amount. Before you spend thousands of dollars, we suggest you join an reputable real estate investing club. You can join clubs for free (like RealWealth) or a small fee (like REIA). Here are some pointers for choosing the right club.
What Is A Real Estate Investing Club?
Real estate investing clubs bring investors together to network and learn about industry trends. If you are new to real estate investing, don’t worry; you don’t have to be an experienced investor to join a real estate investment club. The key is to be eager and open to learning from real estate investors at all levels. You can expect to meet seasoned investors who have been in your shoes and are excited to show you the ropes and share their experiences.
This type of environment is a great option, especially for new investors who don’t know where to start or who to trust.
That being said, not all real estate investment clubs are the same. According to Bigger Pockets, “There are many real estate clubs designed to sell you. They bring in “gurus” who sell either on stage or at the back of the room, and as a result, the clubs typically profit to the tune of 50% of the sale price of the product, boot camp, or training that is pitched.”
To avoid this pitfall, ask yourself, “Does this real estate investing club have my best interests at heart?”
RealWealth’s Real Estate Investing Club
Rich Fettke and I (Kathy Fettke) are passionate about giving people the resources and connections they need to live a life of real wealth. In 2003, we created the real estate investing company RealWealth to:
- Teach people how to create financial freedom with real estate.
- Connect them with the resources and real estate investment opportunities needed to succeed.
- Accomplish this by providing educational resources and professional connections for free.
Our members have free access to education, resources, and nationwide turnkey property teams selling off-market single-family and multi-family properties. Today, more than 77,000 members are changing their lives through real estate investing and syndication development opportunities.
If you are looking for a free real estate investing club with founders who are respected in the industry, discover how members are creating real wealth.
Why Should You Join a Real Estate Investment Club?
People choose to join a real estate investing club for various reasons. Why should you? To answer this question, you need to consider your why factor. Why do you even want to invest in real estate?
5 Signs That Real Estate Investing May Be Right For You
Here are a few signs real estate investing (and specifically passive real estate investing) might be the right strategy for you:
- You want an investment to help you create real wealth (we define this as having the money and freedom to live your life on your own terms).
- You want an investment that will help you provide for your family, gain financial security, retire comfortably, pay for college, worry less, quit your job, and/or take control of your life.
- You want an investment that will free up your time so you can spend more time doing other things that matter to you (travel, sports, meditation, volunteering, family).
- You want a less risky and more profitable investment than the stock market.
- You want to own an asset that pays you month after month, whether you are working or not.
If you answered yes to any of the above, you should definitely consider becoming a real estate investor.
4 Reasons to Consider Joining an Investment Group
Now, here are a few reasons you might also consider joining a real estate investing club like RealWealth:
- You don’t know how to start investing in real estate.
- You don’t know where to invest.
- You don’t know when to invest.
- You don’t know anything about real estate investing and don’t know anyone who does (or, at least, not anyone willing to teach you).
If you want to become a real estate investor but need help getting started, one of the best things you can do is join a real estate investing club.
What to Look For In a Real Estate Investing Club
There are many things to look for in a real estate investor’s club. Here are a few big ones to get you started:
- Investment advisors should be real estate investing experts who succeed at exactly what you are trying to achieve right now.
- Affordable and preferably free real estate investing education, training and networking that empowers you to make the best investments.
- Able to provide real estate success stories from actual members. This isn’t to say that every member needs to be making a million dollars a year, but there should be (at the very least) a handful of club members who are making it work. Trust your judgment. If someone’s story seems too good to be true, it probably is.
- Your real estate investing club should not be charging high fees and exorbitant commissions for their services. Before buying into any club or guru, ensure they haven’t tacked an extra 15% (or more) in service fees.
- If your club offers access to wholesale properties and/or turnkey investment services, they need to provide real documentation about the quality of these services. (To be safe, ensure your real estate club has an A+ rating at the Better Business Bureau. You can also check the turnkey company’s BBB listing too.)
Warning Signs: What to Look Out For in a Real Estate Investing Club
Many investment “gurus” will tell you to buy now in “xyz” market. A good investment club will:
- Share why the real estate market is trending
- Explain the key characteristics of a good market
- Help you learn how to identify a hot market yourself
- Teach you how to calculate your return on investment (ROI)
A good real estate investment association will teach you everything you need to know to determine whether an investment property is right for you.
According to Forbes, your safest bet to avoid real estate scams is to “Do your homework. Take the extra steps to ensure a workshop’s credibility or a property listing’s authenticity, be it cross-checking different listing sites and verifying a broker or company’s licenses. It’s amazing what a simple Google search can yield. Review government websites for recommendations, tips or search for complaints.”
How Does Your Investment Club Operate?
Every real estate association operates differently. Understanding how your club operates is essential to ensure you find the right fit for you.
There are two common investment strategies: 1) members can buy and sell investments as a group, and 2) members can invest independently.
1. Real Estate Syndication Investments
In this strategy, a group of investment club members invest together. This is an excellent strategy for busy professionals or new investors who have the money, but don’t have the time or experience to take advantage of the market. Returns on these types of investments are generally much higher than what banks offer; your money is fully secure, and your investment is often professionally managed to meet the group’s needs.
2. Real Estate Self-Directed Investments
Investment club members focusing on self-directed investing will not invest alongside other group members. In this strategy, every investor buys investment property independently.
7 Questions To Ask About Your Real Estate Club
Here are some great questions to ask yourself before you join.
- Is the real estate investing club set up for education and networking?
- Is the club for-profit or not-for-profit? Either structure can be legitimate, but you should know what you’re getting into.
- Will people selling books, seminars, or services be constantly pitching me?
- Does the club focus on the kind of real estate I’m interested in?
- How many serious investors belong to the club? Are they more experienced than I am, or are they mostly newbies? (You’re likely to learn more from experienced investors.)
- Have the club’s investors done well with investments over time?
- What are the dues? Most clubs charge between $50 and $300 per year. More than that could be a sign of a scam. But you should also look at the club’s other sources of money. If the club receives a commission from speakers who sell products or services, then the information from those speakers might be biased. Slightly higher membership dues might mean that you can get unbiased information.
How To Find Your Local REI Club?
Attending a meeting is the best way to determine whether a real estate investment club membership is right for you. There are a ton of real estate investing clubs around the country that you can choose from. Here are some links to get you started.
- CRE Online – Real estate investment club directory by state
- National REIA – National Real Estate Investors Association directory listing
- REI Club – Find your local real estate investing club by state
Why Join a Real Estate Investing Club Like RealWealth?
When I first started learning about investing in real estate, I interviewed hundreds of real estate pros on my radio show (its now the Real Wealth Show Podcst). What I learned from the wealthy is what got me interested in real estate. I also attended some overpriced seminars to acquire guru expertise. The more I learned, the more it became clear that no one was teaching people how to make money in real estate at an affordable price or even for free.
That’s why Rich and I made membership to RealWealth 100% free. Yes, free, with no strings attached!
Membership provides you with the resources, education and connections you need to be successful. Our goal is to you members build a real estate portfolio that helps you create a life of real wealth, where you have the money and freedom to live life on you terms.
We do this by providing our members with:
1. Real Estate Education
Our members have exclusive access to hundreds of educational resources, including well-researched articles, videos, real estate investing webinars, podcasts, and live events.
2. Investment Opportunities
We use our real estate expertise and knowledge to identify the best real estate markets, investment properties, and development projects for our members.
3. Support from RealWealth Investment Counselor
Members are assigned to one of our amazing investment counselors, who are also experienced investors. They are here to provide you with guidance and can help you narrow down a market based on your individual goals.
4. Real Estate Connections
We connect our members with vetted property teams from around the US that sell professionally managed single and multi-family properties. We help our members diversify their investments through syndication opportunities. We also provide a network of trusted resources, including 1031 exchange intermediaries, lenders, CPAs, and attorneys.
You can also learn more about how RealWealth works here.
If you want to be part of a real estate investing club that gives you the knowledge and connections you need to be successful in real estate without paying a costly price tag, join RealWealth today!
