Local REIA (Club) Implodes! What happened?

Question

Several weeks ago I read two separate emails announcing that the "X" real estate club(s) had shut down and that there would be no more meetings.

These clubs were ran by two individuals who partnered together and ran them in the Orange County, California area near Disneyland. I also understand they ran a similar club in Utah, well north of SLC.

To many, this may be old news by now. I have intentionally stayed out of the high drama as both co-leader persons were always kind to me and I wish them no ill will. However, there's a cautionary tale here for all real estate investors, new or otherwise.

You must understand that most people who wish to endeavor in something new, whether real estate or anything else, tend not to take much of any real action. It's human nature. We get distracted, we're tired after our working at our daytime jobs, family, friends and life compete for our attention.

So, someone offering you a "deal" to put your hard-earned savings to work can be a welcome part of your life if they offer you a way to avoid the hard work on your part. This can be very attractive as it's so much easier.

When a trusted person in the public eye takes your money and "invests" it, you are counting on their reputation and belief that, because they are an educator, your money is safe. We are now (again) approaching yet another RE post-boom wave of charlatan shenanigans.

Well, stay tuned on this one, folks. I think you'll see more in this case, both in your local Orange. County, L.A and Utah papers as well as on BP and other online forums.

One way or another, you are going to get an education!

Joe Homs · Answer

@rickharmon

I would like to bring this thread back into a positive light.  I totally agree with your assessment of the Orange County REIA club and that is why I switched to a new one that started two months ago.  So far there is a great group of people in attendance and I am hoping that this will be a more educational based group.  Here is the information below if you would like to check it out.

This poster certifies that there will be no pitching of products or services at this event.
Time of Event: 08/20/2014 at 07:00PM
Location: Round Table Pizza 22722 Lambert St #1705 Lake Forest, CA 92630
Fee to Attend: Free

The only costs associated with the meet up is for your food and drinks.

We will do brief introductions at the beginning of the meeting, but If you are interested in presenting in detail what you do in real estate, or presenting something specific please reach out to me.

A majority of our time is spent networking with each other, and it has been going very well so far.

If you have any feedback or suggestions feel free to contact me or @WilliamLarsen.

SEE YOU THERE!

@ChadBallard, @AndyBeattie, @AlexBejenaru, @RyanByrne, @TonyChan, @SteveFrost, @BobFuhs, @LaurenHardy, @JoeHoms, @ChristopherHunter, @CKHwang, @KristinJushniano, @ClintKreider, @MattKvalheim, @WilliamLarsen, @RickLin, @MikeLin, @AmberMalfavon, @MikeMargrave, @KarenMargrave, @JonathanMcNeil, @JackMedford, @AliMotaket, @PaulOrtiz, @VipulShaw, @CanontoneSmith, @DeborahSvoboda, @SusanoUreno, @JonathanWilks, @NickWing, @TylerKimmel, @KevinDugan, @TaviPerttula

Clint Kreider · Answer

Thank you @Karen Margrave

I am not familiar with the real estate club that got shut down, but it's sad that people get taken advantage of in this way.

This is the main reason I wanted to attend a group that meets purely for networking purposes with no costs or pitches.

Karen Margrave · Answer

@Joe Homs glad you're enjoying the meetup! In Joes post here, the organizers name was left off, it's @Clint Kreider and @William Larsen heading it up!  It's a great bunch of people, in a low key casual environment.

Gary Parker · Answer

@Ethan Bowen  is correct about the one of the people was VP of SLREIA.  I knew that person fairly well and am well shocked.  But, none of us know the whole story.  The REIA that shut down was the Orange County one that the two people were associated with.  I subscribe to their CA REIA emails even though I am in Utah.

Christopher Hunter · Answer

Rick H. Morning Rick. I am  here in the Orange County area and I have not heard  about this yet. Which publication was this posted in?

Rick H. · Answer

It appears that the primary objective of the Orange County club(s) was to attract investor capital to be used (as represented) to acquire rental property in Utah.

A REIA is a place where many, many people are new to real estate hear success stories but are personally frustrated that they can't find deals on their own. When the club leaders endorse a certain educator's course, it's like a celebrity endorsement. When a trusted leader offers to place your money in a safe, solid investment, newbies and other folks start writing checks.

What always bothered me is the transfer of money from CA to Utah. Always thought that moving my money from someplace I understand to another State, let alone in the hands of another person, is clearly not for me.

The rumors are that the investments were fraudulent, insufficiently documented, had little or no equity from the start, bogus or missing trust deeds securing notes, etc.

I started this thread because I'm leery of people who place themselves in a position of trust, like like people who start clubs, create a real estate kindergarten, and take people's money, ostensibly for investment purposes (rather than education).

Cautionary warning: one way or another you're going to get an education.

Ethan Bowen · Answer

hmmm, I knew of an investor that was specifically involved in orange county and UT. There are no REIAs in Utah north of SLC. The investor I'm referring to was actually VP of the SLREIA (Salt Lake REIA) and resigned recently. But that's all that I know. SLREIA is still up and running.

Rick H. · Answer

Let's get some others to chime in who are familiar with the situation.

Local REIA (Club) Implodes! What happened?

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