REIA Fees

[Jennifer Jackson]

I am interested in joining my local Real Estate Investor Association (Austin, TX) but fees are $100. Is this a scam or a standard practice? 

[Joseph Baldini]

Hello Jennifer,

Here's what's going to happen at your REIA event. I paid the $100 a while back when I was first getting started, and was sorely disappointed.

You'll pay the $100 fee to attend. Once you're there you will get some bits and pieces of some good info, but you'll also have to sit and watch a bunch of fluff and hype. Once the hype clears, they are going to pitch you to pay some outrageous amount (between $1000-$5000) to go to some, "BIG EVENT." Which is for all intents and purposes an investing seminar. During the seminar you will be propositioned to partner with whoever holds the event for another fee of an even more outrageous  amount. After you've paid that fee, you have the chance to partner with the hosts directly, and compensate them with half of your profits of any deals you work on together.

So... Keep your $100. Honestly, you'll be better off calling a real investor and sitting down with them. Most are happy to help an ambitious young person because they've been there too. 

By the time you've paid all of the fees you'd already be $25,000 in the hole and that money could have been used for your first down payment. Meanwhile, you would have learned way more by actually doing it, than you every would sitting in some seminar. 

Hope this helped. If you would ever like to really dive in and make your first steps hit me up any time. I'm always happy to help.