Property Grunt

Thursday, December 09, 2004

Investment clubs

This is a great article from the New York Times about real estate clubs where you can learn about real estate without putting yourself at risk.

According to this article this real estate club educates their members in a productive manner.
Those starting out must first learn the ropes and understand the risks, and that takes time -- usually 6 to 18 months, on average, before most people absorb enough information to feel comfortable initiating their first deals, said Dan Schwartz, the vice president for the 300-member Metropolitan Real Estate Investors Association in Kenilworth, N.J., which has been around for 22 years. The club guides new members along in the process through ''mentoring breakfasts'' and speaker meetings that cover the basics. ''Our program is a get-rich-slow program,'' he said.

The "get-rich-slow program" is the right philosophy to have about real estate since profits generated from real estate investment occur over time. It is also best to learn from people who have succeeded therefore you learn about what worked for them and more importantly what mistakes they made so you can avoid them.

''What our clubs try to do,'' she said, ''is help people make informed decisions about investing. Some do become millionaires, but it doesn't happen overnight.''

This is the most important quote of the article. After going through some of the steps of just buying a home there are a ton of variables that come into play and its important to understand that it is a long and frustrating process. And even after you buy the property as the investor you have be vigilant in maintaining your investment.