Hello Everyone, I’m Isaac Toussie and I’m back with another great article for you on real estate. This time, we’re going to check out the deal with real estate investment clubs. As a former professional land developer in one of the most happening property markets anywhere, New York City, I will give you an industry insider’s perspective that will hopefully help you to some degree.
However, please be advised that what I am about to discuss is in no way intended to serve as business advice of any kind, which should be gained through consultations with licensed professionals such as lawyers and accountants. The following ideas are but my own personal opinions, and culled as they may be from my several years of first-hand experience in the real estate business your mileage will vary!
So, without further ado, let’s get into the thick of things here: real estate investment clubs.
One of the main advantages of joining real estate investment clubs is that you can get a real education from fellow members. It will be unlikely that a significant proportion of the membership are all new to the business, so a real estate investment club will be a great way to learn from those with much more experience. With the right people, such advice alone would be worth the price of membership!
You’re also more likely to avoid scams as a member, not to mention find better deals. You can certainly find partners to join you, and all other kinds of help. Networking aside, the biggest perk is being able to save money on your investments. Quite often the members of a real estate investment club will bypass a realtor and sell their property directly to other members. In this way, commissions and other fees are avoided, or at least greatly reduced.
I myself have not joined any such clubs, but I do have friends who swear by them. As I see it, real estate investment clubs are a great way for the average would-be investor to learn more. They can also offer experienced pros something, but typically under more restricted circumstances. Such a person, for example, may be interested in membership more to promote his own properties than anything else. But for a beginner, these clubs are a great way to view the industry in action!
My own impression, then, is that these real estate investment clubs are particularly worthwhile to newbies, and modestly worthwhile for the already somewhat established.