R.E. Networking, Clubs, etc. Yay or Nay?

Question

OK I've been in this business for many years, and have NEVER gone to any types of networking meetings (other than stuff with MLS) We lived in a small city, where our product was in demand, and there were no networking events to speak of. HOWEVER; it's a new day. We are in a new area (Southern California - Orange County to be exact) and basically starting from scratch in building a new business, though building similar projects as we've always done.

I can see the value of networking. However; many of the meetings like Investclub for Women tout "challenges" for which they charge $1197 for, and also have meetings. There are meetings where brokers network. I've heard of FIBI which seems more to what I would perceive a networking meeting to be (exchanging ideas, deals, etc.)

What meetings do you find are the most productive, as far as meeting people that are buying, selling, have useful information to share, etc., and aren't pushing their wares? @Will Barnard@Ellis San Jose @Tevis Verrett @Jake Kucheck others?

Jeff S. · Answer

What are you looking for, Karen?  We’ve been going to the local real estate meetings for years and probably attended each of them at some point.  With little (though significant) exception, they all follow the same networking-speaker-networking format. Some spend time at the beginning and go completely around the room with brief introductions, which we also find useful.

In our case, we go for the networking and generally don’t care about the speaker, so it’s important for us to find clubs that consistently attract those we want to network with. A handful of clubs consistently attract enough experienced investors (potential borrowers, in our case) to make it worth our while.

Most clubs seem to attract a majority of new investors, so you might tire if these are not who you are looking for.  Some clubs intentionally work hard attracting them. With their 60 Day Challenge, The Invest Club for Women is a prime example.  Unfortunately, they and several other clubs (which seem to be located in OC) spend the first hour of their meeting selling stuff, which I find to be a disrespectful waste of our time.

The FIBI clubs are emphatic about their no sales pitch policy.  Realistically, they do allow their speakers a few minutes to present their books or services, but it’s always unobtrusive.  In my opinion, Matt Owens’ Long Beach, Matt and David Coe’s Manhattan Beach, and Christina Suter’s Pasadena FIBI meeting’s are all worth a visit though I can’t say I’ve been to all the other FIBI meetings.

The best clubs in my view are those dwindling few that are run in roundtable format.  Jeremy Roll’s Cash Flow and his Business and RE Investors meetings attracted the most sophisticated and interesting investors around. Jeremy still posts his meetings on Meetup, but unfortunately has deferred them (c’mon Jeremy!!!).  Frank Williams infrequently holds a lenders-only roundtable in downtown LA that we also found informative.  With my big mouth, I like the give and take of a roundtable format.

Don’t listen at your peril, but Phylis Rockower’s and Steve Love’s meetings in Culver City are unapologetic, disrespectful, pitch-fests that are complete wastes of time.  Ditto Sensie Gilliland’s club in Downey, who I personally find rude and condescending.

We recently attended Pritam Sinha’s club in the SFV, which is relatively new, as well as Sam Sadat’s club in Culver City.  They are somehow associated and both seem to encourage taking a cut of others deals through broker/wholesaler chains, among the new members, which I thought went out of style in the mid-2000’s.  Not bad in spite of this, and maybe worth a visit if you don’t mind the drive or happen to be in the area.

Bill Tan’s Arcadia meeting attracts 100 investors in all shapes and sizes and has been excellent for us.  Networking is a numbers game. I understand his club in San Diego is enormous and one of the best in southern California.  You’re close enough that it might be worth a trip.

Also, several of these clubs offer memberships.  The discount and benefits associated with these is usually so small, especially if you miss a meeting or two, that you're always better off paying by the visit.  There are too many meetings. Why lock yourself in?

Good luck, Karen.

Jeff

Ben R. · Answer

@Karen Margrave , back in the day the Atlanta REIA was a pond full of sharks and I was a newly hatched minnow, but I managed to swim out into the waters and back to shore and made friends with a few other little fish, who grew into big fish who are now good friends and valuable business associates...

Just make sure you take your alligator bat with you to the meetings...

Will Barnard · Answer

Karen,

There are many reasons to attend these meet ups. The reasons are different depending on your experience level, however, there are many benefits regarless of your experience level.

Yes, many clubs pitch items like workshops, programs, etc. In my opinion, you want to stay clear of the clubs that bring in the heavy hitter gurus. Investclub does offer a wholesale education program and attendees will get out of it what they put into it. Clubs must sell some items to keep the doors open.

For me, networking and meeting new people is my key reason for attending. I don't get much out of hearing the speakers as I have enough experience, however, on occasion, I do pick up some nuggets. Nobody, no matter how experienced, knows it all and there is always something to learn or hear a second point of view.

I have got private lenders, JV partners, friends, borrowers, and deals from meeting people at local RE clubs.

I think the FIBIS are great choices for both seasoned and new investors. You are safe from the gurus at any meetings with Ellis San Jose or Matt Owens.

Stephen Masek · Answer

We're been to several of them and concluded we wasted our time and some money.  They are all pushing extra cost books, classes, and such.  At one meeting a supposed super expert flatly stated that people paying cash are lazy or stupid.   Look at all of the cash sales occurring now.   Of course, he was pushing extra cost "training," and talking about "contract sales" being a good idea.  Another one we went to seems to be run by quite questionable characters.  We went to something in LA years ago where another guy pushing "contact sales" could not explain what happens if the buyer does not pay, since the contract is not recorded and a UCC-1 is not filed.   The most recent one where Will Bernard spoke was better, and two of those who attended have real estate radio shows.

Jeff Greenberg · Answer

Jeff S Na Good job nailing the LA club scene.  Jeff you are welcome to come to either of my clubs and you will see that we are in alignment with the FIBI philosophy of no sales pitches.

http://www.meetup.com/VCREIC/

http://www.meetup.com/Commercial-Real-Estate-Mastermind-Network/

There are some good clubs available that won't pitch the speakers wares.  Anything Ellis or FIBI puts on should be of great value.

Paul Timmins · Answer

Karen

70% of the reason you are there is to speak to everyone there.

You will be able to gather advisors, potential team members, and information.

The last REIA I went to had 3 speakers a guy who set up a database to get Comps in seconds, a guy who showed how to get a business line of credit for your LLC and the local health inspector.

As with any pitch you gather the info that will help you. You do not have to buy.

Paul

Ellis San Jose · Answer

@Stephen Masek

Let me know how it goes either way.  Thank you for your input.

Ali Boone · Answer

I'm not a huge fan of the meetups just because I'm so settled in my arena right now, but I always say that there is no such thing as a bad meetup. I'm of the idea that you can get a valuable piece (or pieces) of advice no matter how lame the meeting is. It's all about ignoring the sales and whatever item being pushed and listen to the messages. I wrote an article about it, not sure if it will help!

http://www.biggerpockets.com/renewsblog/2013/02/02/real-estate-investing-clubs/

Stephen Masek · Answer

I've corresponded with Ellis off-line, and understand that the speaker that evening can come-off different than he is, so we'll try going tonight (September 3) to the OC FIBI to see if we like it.

Ellis San Jose · Answer

@Stephen Masek

As the co-founder of FIBI.  I am very disappointed that your experience was negative at the OC chapter.  I invite you or anyone else who is having this experience to have a discussion off line, I would like to hear more.  I want to make sure this isn't the norm at that chapter or any other.

Our core identity is to have a "no pitch" policy at FIBI.  In fact, I am so anti-BS Guru, the selling the "easy money" dream crap drove me so crazy that was one of the major reasons I started FIBI over 6 years ago with Jeremy Roll.

Because of the nature & the reemergence of real estate investing in the public eye,  there is always a percentage of newbies & wannabe investors with most meetings, not just FIBI.  It's the tradeoff of being easily accessible.

We do have a more exclusive meeting with pro's & advanced investors only, but that is by invitation only & is not advertised.  (We have a special handshake and everything! jk)

Each FIBI chapter is distinctly different .  The  FIBI meeting  format is decided by what that chapter leader decides & not the founders.  I assure you, if you come to the meet-ups I lead in Westlake Village, there are no expensive books & tapes sold at the back of the room.  We share information & knowledge. I tell you what classes & courses I have taken that were a waste of money & those that were priceless.  I will occasionally bring in some of my favorite investors to speak & I assure you they are real investors & not a salesman or saleswoman afflicted with "big hat no cattle syndrome."

R.E. Networking, Clubs, etc. Yay or Nay?

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