Reia Woes Or “Steady As She Goes”?

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Reia Woes Or “Steady As She Goes”? - By: Larry Haines, Posted on: 2008-03-25

In a recent blog by Floyd Norris, chief financial correspondent of the New York Times and International Herald Tribune, he listed the 4th quarter market declines in housing prices and then stated; “It is also the worst quarter these indexes have seen for 17 of the 20 markets.”

http://norris.blogs.nytimes.com/2008/02/26/home-price-plunge-accelerates/

Not to beat a dead horse but there are quite a few negatives in the news such as the money being spent in IRAQ, the declining dollar vs. other currencies, consumer confidence numbers, inflation fears and a continuation of the billions of dollars in losses due to the mortgage melt down. Oh, and did I mention oil at an all time high with worries of inflation as icing on the cake?

What does this mean for Real Estate Investor Associations (REIA)? Membership is on the decline in many areas of the country. Real estate isn’t as sexy as it once was, and gone are the days of buy high and sell higher. It seems that we are back to fundamentals. Investors aren’t speculators and, pre-construction investing in condos and residences is almost dead in Florida, Las Vegas and other “greater fool” locations.

Lost is the luster of quick riches, and that may be a good thing for those left standing after the mortgage music stopped. Many associations are having trouble meeting budgets based on the old revenue model of bringing speakers in and then splitting the profits based on product sales of “how to” techniques. Members are tired of being sold “how to” books and CDs at every meeting. Newbie members are dropping off in record numbers, leaving a void for gurus because more mature investors have either purchased the products before or already have a defined way of making investments.

So, where does that leave REIA leadership? Do the words change or die ring a bell? Real estate investors (our members) want to be successful. They expect more than education. They want access to deals, resources to fund deals, and even coaches and mentors to help them through their first few deals. Fear is the main culprit that continues to inhibit newbie investors from doing deals and making profit.

REIA leadership can look to non profit housing providers in the community for collaborative efforts on meeting the needs of low to moderate income people. Investors have housing and non profits have people that need housing. Putting them together makes sense for the economic benefit of both parties.

Investor networking is more important than ever. Putting deals, funding, expertise, and willing investors together is critical to long-term success. Using technology to help in this arena will be a key factor in staying viable as an organization. Competition for the investor is creeping up online from local, regional and national sources.

REIA groups need to do a better job of getting their message out, and now is the time for people to consider the purchase of investment property. I always ask my students if they would like to buy their clothes from department stores – when they are full price or when they go on sale? I am guessing that in almost every part of the country, real estate investors can find properties “on sale”. Can we help facilitate that process of finding, funding, fixing and flipping properties? (Flipping can mean to your own portfolio as a rental or to another investor for a quick sale).

Improving the governing of the REIA is something everyone should consider. New blood and new ideas can reinvigorate the “good old boy” mentality of the REIA as a social club. As Bob Dylan kindly pointed out….”and the times, they are a changin”.

For more ideas on how to improve your Real Estate Investors Association, please email me at Larry@RoadHomeBuilders.com

Article Source: http://proarticles.net

Larry Haines is the president of the New Orleans Real Estate Investors Association and the Managing Partner of Road Home Builders, LLC. For ideas on how to improve your REIA, please email larry@roadhomebuilders.com or Visit Road Home Builders or Visit Real Estate Case Studies