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Creating a Great Real Estate Investment Club

By - 2007

What makes a great real estate investment club? Meetings and events that help its members find great investments and develop their knowledge. A good club helps bring people together in profitable partnerships and can be a place to find alternative sources of financing. Use the following tips to make your club into one that really works.

Invite Members Who Will Contribute

You don't need to keep anyone from joining your organization. On the other hand you don't want nothing but beginning investors in your club. An investment club needs some experienced investors. Contact them directly if necessary, and invite them to join. Real estate agents can tell you who is actively investing in the area and send them an invitation or pass on your phone number.

Experienced investors understand the value of these organizations and many will join as soon as they hear about your club. You might also offer a free membership for the first year to entice them. Your many new investors will often find properties that they can't afford or are afraid to invest in, and experienced investors can take over. Explain that to them to get them to join.

Activities That Work

Create an "I have/I need" session for each meeting. Every member who wishes to announces what they have or what they need at the moment. At a meeting of our real estate investment club in Tucson a few years ago, a member mentioned that he had good cupboards he had removed from a house. Another member bought them, saving perhaps a couple thousand dollars versus buying new cupboards for his fixer upper project.

A man mentioned during another meeting that he had a great house to flip but didn't have the money to do it, so he wanted to sell the contract to someone. He negotiated to sell it to another investor, making a few thousand for having found the deal. The other investor hopefully made at least $20,000 fixing and flipping the property in the end, so both did well.

It helps to write down these "haves" and "needs" on an overhead projector along with the person's name and phone number. At our meetings members took notes constantly. There were regularly investors on the the "I need" side who were looking for financial help with investments. That provided great opportunities for those who had more money than time to invest, or those who needed to see how an experienced investor made the deals work before investing on their own.

Monthly meetings seem to be a good schedule for a real estate investment club. If you can arrange for guest speakers and special presentations occasionally they'll be more interesting. Just be sure to always have time for members to mingle with each other, since this is one of the primary values. Make time for the "I have/I need" session as well. Try to keep membership dues reasonable, generally just enough to cover the rental of the space, minor advertising, and maybe coffee and cookies.

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