Let's clear some things up about REIAs. There is a difference between a for-profit and a non-profit REIA. With a for-profit REIA, the dues and income derived from national speakers do go to the owners of the REIA. However, they generally cover expenses for the venue and other events they provide. They do need to produce a high quality experience for their members.
With non-profit, like NWREIA in Portland, OR, all the dues, which really are quite minimal, go right back into the membership. They too have costs associated with the general meetings, the occasional Saturday workshop, and the various subgroup meeting facilities. The Board of Directors and subgroup moderators are all volunteers and do not receive any compensation. Dues from its membership fees generally don't cover the annual operating expenses, so they supplement their income by bringing in national speakers that do have a product to sell. A portion of the sales does go to the REIA.
When I was the President on NWREIA, I tried on only have 3 - 4 national speakers per year. I tried to bring in good speakers with a topic that was needed for our local group. I also negotiated hard for the price point of their product. As I told my membership, if the product they sold meshed with your business model, consider purchasing the program. If the product was not part of your business model, then don't buy it. Being real estate investors with a business purpose, we all should have a business model that we need to stay within.
For folks that don't think they need a REIA, these are the ones I frequently see that are out trying to do business with little to no idea on what they are doing, subsequently becoming the target of the authorities. Without guidance by a REIA that's mission is educating their members, these folks find themselves in conflict with the law, and then real estate investors get that bad reputation and laws are written.
NWREIA has a portion of their dues dedicated toward lobbying efforts at the State and Local levels to protect your livelihood. If you do not belong to a local REIA, then you are enjoying the fruits of the REIA labors in protecting the industry.
Also, NWREIA is a chapter of National REIA. With that, members enjoy significant benefits from their membership. They are aligned with Home Depot, Sherwin-Williams paint and a host of other vendors that can significantly reduce your expenses in your investing.
In conclusion, the REIA is also the best place to network. At the various events provided by a REIA, there are like-minded investors looking for a deal to wholesale, or are ready to purchase your wholesale deal, or other money lenders looking to finance your deal.
Don't overlook the value of a REIA simply because you don't understand the model and the benefits provided.
Cody Cox
Past President - NWREIA
