Real Estate Investment Clubs

Many years ago, around 1997, real estate investment clubs sprang up everywhere. Novice individuals started calling themselves real estate "investors" and meeting with others doing the same, trying to network and do a deal. What I thought was experienced investors were nothing more than talkers with no idea what they were doing. At the time I didn't know what a "deal" was, but it was described as a no money, no credit needed, no money down, just find a cheap run down house, buy it and flip it for a quick dollar to another investor. Many times I tried doing this, even using someone else's money and each time ran into brick walls of needing credit, needing more money than I had just to close, closing costs, points (remember "points"). A few deals I had to back out of myself due to improper disclosure of the facts on the house, and title companies calling me and saying the title is clouded without more money to get it cleared. Eventually I went on to getting a real estate license to clear the out the people who were unrealistic about doing a "deal". And I have since done many deals for many of my clients. But it took credit, money down, money for option periods, and proper disclosure among other things. It's funny, I had a friend say that I had just done a no money down deal and that I should tell about it at an up and coming meeting. I said no thanks, it only appears to be a no money down - my client rolled the closing costs into the loan (a higher monthly payment), they put $500.00 dn as earnest money, $50 for the option period, the property was in need of some$10000 worth of work but appraised for higher than the purchase price and my client was able to get back around $200.00 at closing which went immediately to repairs on a back fence; the seller was going to go into foreclosure and lost money on the deal but were very relieved that they were out of their obligation.

Maybe investment clubs are a possible starting point in an investment career, but nothing can replace a good realtor, a CPA, a great closer with a great title company, a flexible lender, and smart people who are experienced with investing in real estate, and above all, read, read, read.