Starting a Real Estate Investors Association

Starting a Real Estate Investors Association (REIA)
There are numerous Real Estate Investor Associations, Groups, Clubs across the U.S. and Canada, and in some other countries. These groups provide education, network, and community for real estate investors. There are a few websites that post contact information for these organizations, including www.creonline.com, www.reiclub.com, and www.meetup.com. If there is a REIA close to you, we encourage you to attend meetings and become involved with the group.
If you do not have a group close to you, and you are interested in forming a group, here are a few basics to get you started.
1) Make No Work Policy--A good friend who started an investors group in Jackson, MS, told me that when they started their group, they agreed that no one would suggest anything to complicate the running of the group unless they personally were willing to do the work it required. They made arrangements to meet weekly at noon at a local restaurant. The restaurant collects a fee up front which covers meal, room, tips, and if there is money leftover, they return it to the club in December as proceeds toward a Christmas party and a charity donation. The club always ends and starts the year with a zero account balance. Presentations are made by club members at the meetings, with an occasional guest speaker. Advertising is word of mouth and a website and emails. You do not have to go this simple, but it is certainly worth some consideration.
2) Officers--Most groups have a board, with a President and Secretary. Some groups form an LLC. Officers and/or board members can be elected, or constant.
3) Meetings--Most groups meet monthly, some meet weekly, some have special meetings for new investor training, etc., which can be held prior to the main meeting, or at a different time.
4) Meeting Format--Most groups begin with announcements and welcome, followed by Have's and Want's from attendees, then sometimes a 10 minute meet and greet, and then a presentation, either from a group member or a guest speaker. There are guest speakers that travel and offer products or services for sale to your group members. Most REIA meetings are about 90 minutes to 2 hours in length, usually on weekday evenings, after office hours.
5) Fees/Dues--Some groups offer memberships on a yearly basis, others have a monthly attendance fee. Fees generally average between $10 to $20 per month, this money is used to cover room expenses, advertising, promotion, and some groups pay the leaders of the group for their services.
6) Meeting Locations--Locations vary, common locations are restaurants, civic, community or senior centers, office building meeting rooms, hotels, elks or eagles lodges, etc. Meetings in restaurants may or may not include/require purchase of a meal. Seating is either classroom or theater style. Most groups starting out look for low or no cost solutions for a place to meet. Often the members may have connections for a place the group can meet.
7) Promotion--Most investor groups have websites, and maintain lists of attendees to send out email notifications and/or direct mail pieces to promote future meetings or other events. Some groups that operate for profit use other methods to actively build membership. Websites can include schedules, blog articles, training information, downloadable online courses, available properties classifieds, and other classifieds promoting or requesting services, contact information, real estate forms, etc. If you are going to build a website, please view websites for some existing investor organizations to see what they include on their sites.
Other services--The biggest draws for investor groups are ostensibly the training and networking that take place. I personally believe that the biggest benefit is being able to meet with other like-minded people, and getting a little boost and encouragement. Special training for new investors can be helpful, plus tips and strategies to improve or streamline one's effectiveness are always appreciated. Leaders can also offer consulting services to help other group members and attendees with issues or problems. Additional services can be offered for a fee, and obviously individual services typically cost more than group services.
9) Disclaimers and Records--Modern society tends to be litigious, and it is critical that you begin meetings with a disclaimer and advisement that all decisions are personal and should be made with the assistance of proper legal and financial advisors, and that all information offered at the meeting represents the personal opinion or experience of the provider of that information, and is not the responsibility of the organization. It is also a wise idea to either record each meeting, or have someone who can take good notes on what is said in the meeting as an archive in the event that someone in the future claims to have received advice in the meeting.
10)Funds, Bank Accounts--Many groups operate as sole proprietorships, under a DBA (Doing Business As) arrangement. Or, as mentioned above, some groups form an LLC. Once a name has been registered, a simple checking account will usually cover association needs (unless the club is being operated for profit, and then a more complete business structure should be set up.
11)Online Meetings--It is possible to operate an investors association using online meetings. The common approach for attendance with online groups is to arrange a Virtual Classroom service that allows for an audio link (telephone or internet), and a visual link. The visual portion could be powerpoint or live video.
12) Limitations--The organization should provide an educational and networking environment, but should not become involved in people's transactions or finances. If a board member also offers real estate services for a fee, or is an industry professional, they should be required to sign a statement that requires full disclosure of their separate involvement with their profession and the investors group to anyone that they approach regarding their services. Remember that when people make a bad decision, they tend to want to blame someone else, and will point fingers wherever they think they can place the blame. Make sure it is not the investor association.
I've had the opportunity of attending meetings for hundreds of different investor groups across the United States, and of being the president of one of these organizations for about 4 years. It is a rewarding experience to be able to assist other investors to be successful. My greatest counsel is to always promote the high road in investing--I've never engaged in teaching people what they can "get away with." All my involvement has been to teach people to create win/win transactions. I believe I was trained by the best--Dr. A.D. Kessler, whose approach to investing was always based on "What's In It For Them." I suggest that your organization always assist people to do that which is moral, ethical, and legal, and NOTHING ELSE!
Hope these basics can be of assistance to you in forming your own investor association.