Tuesday, September 23, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Real estate investment clubs for fun and profit, with luck

Kimberly and Edward Rushing’s fledgling real estate investment venture got off to a rocky start.

Seven years ago, at the height of the housing market, the young couple bought a home they intended to fix up and flip in San Bernardino County.

“As soon as we bought it,” Kimberly Rushing said, “the market crashed.”

They realized, however, that there was an upside to a down market. They began attending events at real estate investment clubs. Listening to speakers and meeting mentors and potential partners, they learned the nuts and bolts of property investing and formed long-lasting connections.

“It was everything,” said Kimberly Rushing, 29, who runs the couple’s real estate investments while her husband is deployed as a Marine captain in Afghanistan. “Neither of us could have done it without the clubs.”

With the housing market improving and the prevalence of social media, real estate investment clubs are proliferating. Events, typically held once a month, attract a variety of professionals, including accountants, tax lawyers, real estate agents and a mix of old-time and newbie property investors, flippers and landlords alike.

For a small fee at the door that costs less than a couple of cocktails, the evening includes a social hour, an economics and housing market update, a quick plug from a sponsor or two, the featured speakers, then more networking later.

Many clubs, like those the Rushings have attended, focus on education and networking, rather than pooling members’ money for the club to invest.

Other clubs, however, are set up to promote a particular investment program or product. There, prices can run into thousands of dollars, and attendees might be pressured to sign up for other, more expensive courses.

“Is the interest of the club to educate, or is the interest of the club to sell you?” said Joshua Dorkin, who founded the popular investment site BiggerPockets.com and is an outspoken critic of expensive seminars.

“My advice to somebody who’s looking to go to a club: Be aware that any event you go to, there’s very likely going to be somebody there who might be pitching you,” he said. “No. 1 is always leave your wallet at home. There’s no easy way to make money in real estate. There’s no ‘get rich quick.’ ”

Investors attending recent meetings of such clubs said the events have offered them a chance to learn from experienced speakers, meet lenders or eventual partners and pick up everything from tax tips to referrals for roofers.

“Old-time landlords and newbies need to talk to each other,” said Steve Dexter of Laguna Beach as he waited for an Orange County investors association meeting in Costa Mesa to begin one evening in March.

Although experienced investors have money to spend, Dexter said, “Old-timers don’t want to go out there and tear up the landscape looking for deals.”

Dexter, who buys and rents properties, says the so-called get-rich real estate gurus don’t adequately explain how difficult being a landlord can be. He’s written books instructing property owners on how to do it better.

Dorkin encourages new investors to seek out local mentors.

“Do what you can to connect with them and befriend them. Volunteer your time and energy to work with them,” he said. “I liken it to the old blacksmithing days. You want to be an apprentice to a guy in your neighborhood who you know knows his business.”

Some clubs have colorful names or gimmicks. One new club, Lady Landlords of Orange County, also welcomes men. But founder Jasmine Willois said that after a former stint as a stockbroker for a Wall Street “boys club,” she wanted to create an organization that would be particularly appealing to women.

Her club is an outgrowth of her Real Lady Landlords of San Diego, a concept she’s hoping to take across the country.

“We don’t push programs; we push education and networking,” Willois said. “We’ll show you how to get involved without spending $30,000.”

Willois, who said she couldn’t afford to start out buying homes in San Diego, invests in properties in Indianapolis, and teaches others how to find investment markets outside their backyards.

“You don’t have to fight over deals with these big millionaires to get into this game,” she said.

———

HOW TO VET REAL ESTATE INVESTMENT CLUBS

Before you attend a real estate investment club or seminar, and especially if there’s a chance that you could wind up spending a significant amount of money, know what to expect. Some questions to ask:

—Does the meeting draw speakers with a variety of backgrounds, or is it devoted to pitching a particular program?

—What are the credentials of the recent/upcoming speakers?

—How much time is allotted for networking?

—Are there opportunities to ask questions?

—What does it all cost? If there’s a tiered system, what do I get at each level?

—Be wary of promotions that claim you can make big money fast; there’s no risk; the deal is a sure thing; you can earn a lot by working part time at home; you’ll be coached to success every step of the way; or if you don’t buy right now, you’ll lose out.

SOURCES: BiggerPockets.com; Federal Trade Commission

Mcclatchy-Tribune News Service

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

 
Weather for Tuesday, Sept. 23, 2014

By Daily Republic staff | From Page:

Police investigate deadly Vallejo shooting

By Glen Faison | From Page: A5

 
 
 
Police report missing man was found

By Glen Faison | From Page: A5

 
Support group to host domestic violence event

By Susan Winlow | From Page: A5

 
Lake Berryessa hike set in October

By Barry Eberling | From Page: A5

 
Work scheduled for Rio Vista Bridge

By Barry Eberling | From Page: A5

.

US / World

California wildfire crews brace for weather shift

By The Associated Press | From Page: | Gallery

 
Reserves narrowing for California water wholesaler

By The Associated Press | From Page:

LA County sheriff’s deputies testing body cameras

By The Associated Press | From Page:

 
Bear suspected to have killed New Jersey hiker

By The Associated Press | From Page:

Poll: Support for gay marriage may be leveling off

By The Associated Press | From Page:

 
Islamic State militants kill 40 Iraqi troops

By The Associated Press | From Page:

Sierra Leone, Liberia brace for new Ebola cases

By The Associated Press | From Page:

 
Islamist group kidnaps Frenchman in Algeria

By The Associated Press | From Page: | Gallery

Pennsylvania governor confident ambush suspect will be caught

By The Associated Press | From Page: | Gallery

 
Focus on UVa employee in student’s disappearance

By The Associated Press | From Page: | Gallery

State police: 3 missing Afghan soldiers in custody

By The Associated Press | From Page:

 
Prosecutor: 800 rounds found in intruder case

By The Associated Press | From Page: | Gallery

Islamic State offensive poses problems for Turkey

By The Associated Press | From Page:

 
Study links changing winds to warming in Pacific

By The Associated Press | From Page: | Gallery

Crews work to clear debris from Shasta mudslide

By The Associated Press | From Page: | Gallery

 
.

Opinion

Editorial cartoon for Sept. 23, 2014

By Daily Republic Syndicated Content | From Page:

 
Still searching for the bottom in Iraq

By John M. Crisp | From Page:

Academia needs to act to protect college women

By Dan K. Thomasson | From Page:

 
Question of the week: Will the drought end this year?

By Daily Republic | From Page: A8

.

Living

Today in History: Sept. 23, 2014

By The Associated Press | From Page:

 
My daughter doesn’t like my cruise plans, but she ignored me first

By Kathy Mitchell and Marcy Sugar | From Page:

Community Calendar: Sept. 23, 2014

By Susan Hiland | From Page:

 
Horoscopes: Sept. 23, 2014

By Holiday Mathis | From Page: B7

.

Entertainment

Kris Jenner files to divorce Bruce Jenner

By The Associated Press | From Page: | Gallery

 
Alaska TV reporter quits on air to promote pot

By The Associated Press | From Page:

Shonda Rhimes lays claim to Thursday nights on ABC

By Frazier Moore | From Page: | Gallery

 
Giuliani to help fight Noriega’s video game suit

By The Associated Press | From Page: | Gallery

‘The Lion King’ earns record box office

By The Associated Press | From Page:

 
Eric Lynch, Howard Stern’s diminutive foil, dies

By The Associated Press | From Page:

TVGrid Sept 23

By Daily Republic Syndicated Content | From Page: A11

 
.

Sports

Giants get closer, beat Dodgers 5-2 in 13 innings

By The Associated Press | From Page:

 
Prep boys water polo: Mustangs go 3-0 in Dixon tourney

By Daily Republic staff | From Page:

 
Prep boys soccer: Mustangs hold Indians to 0-0 draw

By Daily Republic staff | From Page:

 
MNF: Bears hold on to beat Jets 27-19

By The Associated Press | From Page:

Jeff Samardzija pitches A’s past Angels 8-4

By The Associated Press | From Page:

 
Nebraska’s Abdullah: Jameis Winston must grow up

By The Associated Press | From Page:

Raiders have to settle for moral victory

By The Associated Press | From Page:

 
Home of 49ers lineman Ray McDonald burglarized

By The Associated Press | From Page:

Undisciplined play sends 49ers to 1-2 start

By The Associated Press | From Page:

 
Kicking game: It is called football, after all

By Barry Wilner | From Page:

US Soccer stands by Solo decision

By The Associated Press | From Page:

 
FIFA ethics judge hesitates on World Cup

By The Associated Press | From Page:

 
Braves fire GM Frank Wren after missing playoffs

By The Associated Press | From Page:

Royals beat Indians 2-0, gain on Tigers

By The Associated Press | From Page:

 
Bettman says NHL proactive about off-ice conduct

By The Associated Press | From Page:

Silver: NBA will review domestic violence policies

By The Associated Press | From Page:

 
Concern over McIlroy, McDowell more about results

By The Associated Press | From Page:

NFL vetting process: There are no sure things

By The Associated Press | From Page:

 
Owner: ‘No misinformation’ by Ravens on Rice

By The Associated Press | From Page:

This date in sports history for Tuesday, Sept. 23, 2014

By The Associated Press | From Page:

 
Kent creates scholarship for Cal women’s athletics

By The Associated Press | From Page:

 
.

Business

Treasury to unveil steps to curb tax inversions

By The Associated Press | From Page:

 
Tesco suspends execs over inflated profit report

By The Associated Press | From Page:

GM expert says 21 deaths eligible for compensation

By The Associated Press | From Page: | Gallery

 
Apple: 10 million iPhone 6 and 6 Plus sold

By The Associated Press | From Page:

US existing home sales fall in August

By The Associated Press | From Page:

 
Investors fret Yahoo’s future, stock dips

By The Associated Press | From Page: | Gallery

Businesses and investors pressing for green policy

By The Associated Press | From Page: | Gallery

 
.

Obituaries

.

Comics

Garfield Sept 23

By Daily Republic Syndicated Content | From Page: B6

 
Baldo Sept 23

By Daily Republic Syndicated Content | From Page: B6

Dilbert Sept 23

By Daily Republic Syndicated Content | From Page: B6

 
Baby Blues Sept 23

By Daily Republic Syndicated Content | From Page: B6

Cryptoquote Sept 23

By Daily Republic Syndicated Content | From Page: B7

 
Zits Sept 23

By Daily Republic Syndicated Content | From Page: B6

Beetle Bailey Sept 23

By Daily Republic Syndicated Content | From Page: B6

 
Bridge Sept 23

By Daily Republic Syndicated Content | From Page: B7

Crossword Sept 23

By Daily Republic Syndicated Content | From Page: B7

 
Word Sleuth Sept 23

By Daily Republic Syndicated Content | From Page: B7

Pickles Sept 23

By Daily Republic Syndicated Content | From Page: B6

 
Frank and Ernest Sept 23

By Daily Republic Syndicated Content | From Page: B6

For Better or Worse Sept 23

By Daily Republic Syndicated Content | From Page: B6

 
Rose is Rose Sept 23

By Daily Republic Syndicated Content | From Page: B6

Sally Forth Sept 23

By Daily Republic Syndicated Content | From Page: B6

 
Get Fuzzy Sept 23

By Daily Republic Syndicated Content | From Page: B6

Sudoku Sept 23

By Daily Republic Syndicated Content | From Page: B7

 
B.C. Sept 23

By Daily Republic Syndicated Content | From Page: B6

Wizard of Id Sept 23

By Daily Republic Syndicated Content | From Page: B6

 
Blondie Sept 23

By Daily Republic Syndicated Content | From Page: B6

Peanuts Sept 23

By Daily Republic Syndicated Content | From Page: B6