Real Estate Investment Clubs: How To Get Started ~ By Chris Anderson, Ph.D.February 17, 2006
Get Notified About Our Next Project -- Coming Soon (Details)
Over the last two weeks, we have discussed how being a part of a real estate investment club, or group, can result in exceptional investment opportunities that are not available to individuals. (Week 1 Article, Week 2 Article).
Now, let's look at the typical path for a real estate investor who is interested in investing outside their local area. Once they learn the approach , now they fire up their Google search engine. Hmmmm, let me see, let's type in "Preconstruction". When I did that, I just got 899,000 (literally) web pages that matched that search term. Now, they go through the top 30 or so and learn about all the reasons why you should consider this project, or that location, or be a part of...
I remember facing that scenario about 3 years ago. What I started to notice was that there was a select few groups that got really good projects and the other 98% of the web sites got leftovers. Since I was only interested in finding projects (I had no idea that we would create something like GetPreConstructionDeals.com at that time), I wanted to know why. The answer was very simple... These real estate investment clubs had substantial buying power so they were getting good deals. So I joined their lists.
Even as part of those lists however, I became frustrated. Why? Largely because I couldn't get the kind of information that I was looking for to make the investment decision. Long story a little shorter, the realization that real estate investment club buying power was very important, and the frustration of not being able to get enough info led to the creation of www.GetPreConstructionDeals.com .
But now that we are on the other side of the fence, with over 15,000 registered investors, we understand soooooooooo much more about what it takes to be apart of a group and get access to truly good projects. Regardless if you work with us or you work with others, let me give you some specific steps you can take to improve your odds:
Just so you understand why steps 3 &4 are so important, consider our latest project in Tampa . This project has been hugely popular but we had no idea, in advance, if it would be popular or just interest a few. Now, all of a sudden, we have over 200 people expressing interest and wanting calls... Yikes!
With a tight deadline imposed by the developer, where do we start? We know from experience that many of these 200 will not be serious which is fine. First, we start with our Mastermind Members because we know that they are seriously interested in getting projects.
Next, we then go to members who we KNOW are serious and make sure they get everything they need. Then next, we start with the others in the order they were received.
In contrast, suppose there was a group of 5 like minded individuals that we KNEW were serious about condo conversions in Florida with rent Guarantees. In all likelihood, BEFORE we even agreed to put this project on our web site, we would have been in contact with that real estate investment club asking "what do you think."
Now, suppose that same group then recruited a few more buddies and got up to 20 members in their real estate investment club, all looking for roughly the same thing. Next, they then communicated their interest to us. Of course, that real estate investment club would play a big role in future projects meeting their needs but that is only a small part. Instead, we could then start LOOKING for that project, putting out feelers around the community, etc. Basically, this turns the process around and we now ASK developers for specific projects.