Build Your Real Estate Power Team
if you have a made a commitment to yourself to be a Real Estate Investor the best advice you ever received was to join a REIA. Because the second best piece of advice you received was to build your power team. The core is a Title Attorney, an Accountant, a Real Estate Agent, and an Accountability Group. You’ll find the people at your REIA or indirectly through your REIA. An established REIA will have at least 100 attendees every month. You will find real estate agents, general contractors, other investors, potential mentors, and maybe a Title Attorney. You can definitely build your power team from a REIA. If you limit yourself to your current core group for results you’re only going to get the same level of results. You may need to shuffle the pieces of your team to find the right mix that makes you the most money.
Real Estate Education
These meetings are your chance to learn what an industry expert is using for their business. You get a 90 minute course and the opportunity to learn more. Most times the 90 minutes is enough to make you dangerous and find out more about the strategy. This a great place to start your google search on what you just learned. If you think your time is worth $15 an hour than you would buy most REIA pitch ideas because really they are doing all of the leg work for you. Yes these are the cliff notes, but you’d be surprised how much you can retain from a REIA meeting years ago and what you learned about a strategy or tool.
Real Estate Advice
Have a question? Ask it to new and experienced real estate professionals. You can formulate your own theory after hearing other people’s inputs, You actually learn more by failing than be succeeding. Unfortunately there are so many ways to fail in real estate. You will be surrounded by people with success stories and lessons learned. Their failures will make you a better real estate investor. If you have a specific question, a REIA is a great place to get some advice. Someone asked a marketing guru once – “What kind of list should I buy next for my marketing?” The guru’s answered surprised everyone, “I have lost millions of dollars by not following up on my existing lists!! I purchased a follow up system for $30,000 and made $35,000 on one deal because the follow up system was in place.”
How are people getting these deals?!?! Marketing!! Which ones work best for your target market. A REIA is a great place to find out. The best marketing is word of mouth or referrals. But how do you get the referrals to come if you have never done a deal? There are marketing for new businesses and old business, but the best mass marketing technique for finding a deal is direct marketing. Craigslist and Facebook work, but when it comes to finding distressed properties, the US Postal service is still your best chance of finding a deal. Now you have three mediums to get the word out. How do you stand out from the crowd? A REIA is a great place to find out what is working in the local market.
Find Cash Buyers
Do you know the best way to find a Cash Buyer? Bring a deal to your next REIA event!!! It doesn’t have to be your deal. Bring someone else’s deal and shop it at the REIA. That’s right. Go to you online market place and find another wholesaler. “Hey are you going to XXX REIA tonight? I am. I would love to pitch your property!” You might even make a $1000 for doing this leg work. After you pitch the deal do you know who will find you – you guessed it … Cash Buyers. Build your list at every REIA meeting and be known as the wholesaler with all of the deals. cash Buyers will call you to see if you have an inventory.
Go To Real Estate Church
Is there anyone in your circle of friends and family that don’t believe in your dream? If you go to a REIA you will be surrounded by people that believe in themselves and believe that Real Estate is their path to Financial Freedom. You will receive encouragement and get positive feedback when you say “I am an Real Estate investor.” Revitalize your passion for success in by joining a REIA and attend regularly.
Deals on Distressed Properties
Are you looking for deals? Of course you are!! Investors are bringing their deals to REIA meetings all of the time. Keep your ears open to the deal section of the meeting. These people are bringing deals to meetings so at the very least they are good contact to keep in touch with.
Local Real Estate Issues
Even in the housing bubble of 2007 and 2008 some markets increased in value. Amazing right! It did effect the entire country’s economy but real estate is a local industry. Your REIA should help understand when it’s time to buy, flip, convert, wholesale, sell or do nothing. This is a great way to hear 2 opinionson the market and the strength ofit.
These are not your friends. These are people that are on the same level as you in real estate and want to push each other to get better. They are looking for an accountability group as well. You should meet twice a month and go over your goals for that time frame and for a longer time frame to make sure you are staying ion track. If you are a new investor and you put a millionaire investor on your accountability group he may as be talking in a different language when he describes his goals and intricacies of his business for your review. It is crucial that you find an accountability group when that matches your level. Make sure to leave your group when you are no getting anything from it any
This may be obvious that you go to a Association to Network, but i can’t tell you the number of people that register at the desk and then take a seat and wait for the presentation to begin. Networking badly is better than sitting alone.
Real Estate Tools
Your recurring fees to run any business can be 5% of your monthly expenses. Why not know the best ones to use and the best way to use them? The hard work of researching tools has been done for you when you attend a REIA. You’ll get feedback and most likely discounts on the tools. If a tool makes you 1% better it could mean an additional $100,000 of profit over your real estate career.
This is a vendor of last resort and they will tell you that. They will lend on the funding of the property and the rehab of the property or both. They like to lend based on you credit score because it shows your ability to pay back loans. About 10% of the time the REIA is the Hard Money lender. This is not a conflict of interest, this is a feature.
This is a scary business. Some people have the financing to get started, but not the will. These people are called Private Money. Hey I have a deal that is secured by real estate at 65% and I will fix it up and put it on the market. You will get 6% return on your money in one year”
Joint Venture Partners
Ready to spread and risk and make more money? If two people think its a good deal you have higher probability of success and a lower risk of project fatigue if you are both pushing each other to make money. People are inclined to listen to a deal that is a JV because they know of the reduced risk and their potential to help decide whether a deal should have life blown into it.
Real Estate Agent
Agents are trained to work with Real Estate Investors. Don’t assume they have worked with someone like you before. The getting to know each other phase is the interview phase as well. You should write down what you want your real estate agent to do for you and make sure it something that you can share with them. Send it out when you think you should have a meeting. This will help speed up the interview process when they understand what they are interviewing for.
If you haven’t created an LLC for Real Estate allow me to convince you. Every trip to the REIA is a write-off. Every training class … write-off. If you make $10,000 on a deal found in a REIA and you spent $1000 during the year, your taxable profit is only $9000. Keep your receipts!!
Local Real Estate Mentor Programs
Larger REIA’s have mentor programs and usually your REIA Organizer is a mentor. Do you feel 100% conficent in your next move in real estate. Do you need to find a Mentor that will not leave town after three days? Or do you feel as though your mentoring should happen in your local market and not 100 miles away with 10 other people? Then you probably need a mentor that you find through your REIA.
Discount on many Stores and Products
As a REIA member there are always advantages. The REIA Organizer will use the the power of his/her tribe to get reduced rates on training and services. Joining multiple REIA’s doesn’t actually diminish this discount. You can justify the membership at one REIA for the hardware supply store discount and at another for a software discount and another for a training discount. You need to grow your business and stay active in the Real Estate Investor community so this is a great way to shop for the best discounts in your local market.
Marketplace for Real Estate Deals Not on MLS
REIA’s almost always set aside a “Deal Time”. You’d be amazed on what you can learn. You can learn how to get the most attention for your property. You can learn where Investors are looking to buy. You can learn which markets are actually good for wholesaling. If you have the funds, you may even find a deal!!
Find More REIA’s
New REIA’s are starting all of the time. If the owner of the REIA hasn’t started marketing their REIA just yet, then you’ll have to really on word of mouth marketing to find out about new REIA’s. If you have started a new REIA please register it here!
Get Found in Real Estate
You may have put a lot of energy into your marketing of your real estate investing company. So has your REIA and the Organizer wants to keep in contact with you and develop a business networking relationship with you. You may want to go a step further and become friendly with the REIA owner. At the very least, if you show up enough the Organizer may even recognize your face.So when someone who needs your talents, asks the REIA for support or the new person can’t put a face with a name, the owner can direct your new acquaintance your way. Soem REIA’s will allow you to become a power member and this may even come with rights to the website and even put your company website links on their website. REIA’s are a great place to get found. Find a list of nationwide REIA’s here.