We have all read Rich Dad Poor Dad, watched the Carlton Sheet Infomercials, and listened to our friends who are real estate agents who promote real estate as the surefire path to wealth and independence. However, I didn’t know real people who were structuring deals and flipping houses. Well, a friend suggested that I attend a monthly meeting at the Washington Real Estate Investment Association. What I learned was worth making the trek north to Bethesda. I learned:
1. The community of real estate investors were very diverse and welcoming. I thought I would be the only women of color in a sea of old white men. I was pleasantly surprised to find a very diverse crowd who were all engaging each other. The Sikh was chatting with African American man who sat next to women of all backgrounds doing impromptu networking.
Also, everyone was very welcoming of newcomers. I didn't really have a plan of action before going so I grabbed a free slice of pizza and sat in the middle so I could see the presentation screen. Luckily I sat beside a REIA member and began to chat her up about how long she was a member and what deals was she working on. She began to give me all kinds of advice. She told me that a basic real estate course would be helpful in my future business and that I should read “Are you Dumb enough to be Rich?” by G. William Barnett II.
2. We can find the deals, people and money we need at the meeting.
The REIA facilitator began with an introduction and “off market” presented deals that members had brought in. Basically he read off the property details, estimated renovation needed, and estimated resale value. Interested parties could contact the person who submitted to deal to see discuss providing financing, their renovation services, or recommendations of attorneys or accountants.
Then the facilitator allowed us to officially network for 5-10 minutes with our neighbors. I met a couple who were also newcomers and anxious to build a team of people interested in purchasing homes together. They even shared with me that they found home in Bowie, MD that they would be interested in showing to potential partners and having it renovated.
3. Real Estate has not changed much over the years. The facilitator began to walk us through what each participant in the room should be doing based on their level as an investor: Beginner, Intermediate, and Advanced. Since, I would be a beginner investor, someone who had done 0-8 deals, that information stuck with me the most. He said, "Every few years somebody offers a faster, quicker, and easier way to buy real estate. The story is always the same...I grew poor, before I discovered real estate. It took me at least a year before I began to see some results. Now, my business is growing like wildfire. All I do is push too buttons, sit in my pajamas, and make money." He told this story to remind us that Real estate buying will take some work and effort. It is easier to find properties through the internet instead of mailings and knocking on door (in the 1980s). But some effort will still be required.
It was exciting to find this dynamic group of novice and advanced real estate investors all trying to figure out how they could work together. The website for the Washington Real Estate Investment Association is www.profitableproperty.com.