Four times this week I was asked the same question. It is a very good question that I get often. The problem is I can’t answer it. Well, that isn’t true. I can answer it, but it wouldn’t be the right thing to do. Here is the way the question gets asked.
I have $X to invest in real estate and I am calling you because I know you know a lot of people. I want to work with a very experienced investors and I don’t know where or how to find them. Who should I work with?
Let’s unpack this question a little bit. Two of the four that asked the question weren’t AZREIA members and two were. While I appreciated that a non-member would even ask, they all received the same answer.
One way for me to answer the question is to just give them a name of a very experienced AZREIA member who invest in the way they are interested and their money would probably be very safe and they would receive an excellent return. Nope. That isn’t the answer I gave.
Another way is the provide the names of three or four AZREIA very experience AZREIA members who invest in the way they are interested and their money would probably be very safe and they would receive an excellent return. Nope. That isn’t the answer I gave either.
Here’s what I told them. There are dozens, even hundreds, of AZREIA members that have the experience and skill that can produce what you are looking for. I just won’t tell you who they are. You will have to find out who they are yourself and I will tell you how you can. Naturally, the response I get isn’t usually positive. They just want someone to give them the answer so they won’t have to do any work. The reason I won’t do that is two fold. 1) There is always the possibility that a real estate deal doesn’t go as planned and could lose money. There could be the possibility of liability that I don’t want to subject myself or AZRIA to. 2) It wouldn’t be fair to all the other AZREIA members. The AZREIA members readily understood this second point. Non-members didn’t.
Let me expand on item #2 more. Robyn Thompson did two full-day seminars last month. During each seminar she asked how many in the room had $100,000 or more to invest. In each case about a third of the room raised their hand. That adds up to about 75 people give or take. And that is just the members that were in the seminar!
Most of our members know that neither the staff nor I invest with members. It wouldn’t be fair. AZREIA isn’t here for Alan Langston to get good deals. I pass them up all the time. AZREIA is here for all their members. AZREIA isn’t here for just investors that I happen to know. It is here for everyone.
Here is the real answer that I gave all four. Come to AZREIA meetings and you will meet the people you want to meet. Attend the Phoenix Real Estate Club and you will meet the people you need to meet. Attend the AZREIA subgroup meetings and you will meet the people you are looking for. Attend AZREIA seminars as the people you are looking for are there. Come to the meetings, network and ask questions. That’s the way it works. The really good, active investors are there because they know they will meet and network with three different types:
1) The person with money that wants to partner.
2) The person that is looking for a mentor that they may be able to use in their business to some capacity.
3) Other experienced investors that they can exchange ideas and market information with.
Some very experienced and successful investors are at every AZREIA meeting or event. Why are they there? You now know the answer.
Now, there is another point to this story. There is a lot of money available to invest in Arizona real estate. It is there, you just have to find it. The emphasis is on “you”. What I didn’t tell you earlier is that the two non-members that wanted me to just “give them the answer”, were told by their “trainers” to find the local REIA, call the person that runs it and they will gladly tell you who the players are because they want to take care of their members. That may be true with other REIAs that were formed for the benefit of the person that formed it. That isn’t true of AZREIA. AZREIA is there to create the environment where every member can succeed as long as they participate.
I trust you agree with and support AZREIA’s position and you will come to our meeting and participate.