Those new to the real estate investment market often seek guidance on how to track down and negotiate deals in the most effective manner. But unless inexperienced investors are willing to shell out big bucks for classes or seminars, some of which may still be unhelpful, it can be difficult to receive the guidance that is often needed when conducting one’s first investment deals. RealEstateCaseStudies.com is the brainchild of Larry Haines, president of Road Home Builders and the New Orleans Real Estate Investors Association (NOREIA), and is intended to offer real estate investors with solid examples of well-executed deals to guide them through the investment process. RealEstateCaseStudies.com will go live Sept. 1. Until then, investors can visit the site and view a sample case study free of charge.
The RealEstateCaseStudies homepage before the full launch
The site will offer detailed case studies of deals completed by experienced investors, taking members through the process step-by-step from beginning to end. Haines said he came up with the idea when he was the focus group director for the Real Estate Investors Association (REIA) in Houston. He said that inexperienced investors were often afraid of getting into deals because the process was essentially an unknown to them.
“[Fear and lack of education] paralyze people...so I put together a test program. I got four investors together, including myself, and we each walked through a deal in about ten minutes. We showed what the deal was, how we found it, the paperwork, how we funded it...and the response was absolutely overwhelming,” Haines said. “I figured if people like this sort of thing in person they’d probably like it online. We’re trying to put it into a format that would make it more accessible to people.”
Each case study is divided into “chapters” focusing on particular stages of the deal-making process. Members can make their way through sections focusing on how the investor found the deal, what documents were needed, how the property was financed, how the investor renovated the property and how it was ultimately flipped or rented. The site will also offer due diligence tools such as guidelines on how to do a property evaluation and spreadsheets to assist with the process.
“Most people, if they put a case study up, put up what was done but not how to do it. They tease you—‘look at my big check!’—but they don’t tell you how to do it. What we’re trying to offer is not only the 'what,' but also the 'how to.' And the in-depth 'how to.' And the reasons why they did things like that,” Haines said.
For now, most of the case studies are from investors in the South, but Haines hopes to expand the site’s repertoire to include case studies from all across the nation. The site will be structured like a social networking site, allowing members to network with one another and rate the usefulness of the case studies they view.
Members will receive access to case studies on a month-by-month basis. For $9.95 per month, members will be able to access one case study per month, while $49.97 per month will allow access to four case studies per month. The investors who contribute the case studies may also occasionally offer question and answer sessions via conference call, Haines said. He said his hope is that the site will provide a platform for reliable mentoring and will be able to dispel some of the jitters that first-time investors face.
“It takes the fear out of doing a deal when you can see it step-by-step,” he said. “It’s like looking over an investor’s shoulder. You almost get one-on-one coaching on how to do a deal.”
In the time leading up to its official launch, the site is looking to develop affiliate relationships with REIAs across the country. If a REIA enrolls five or more members on the site, it will receive 30 percent of those members’ subscription fees each month. This subscription-sharing agreement will only remain available prior to launch, according to the site. Further details on this program are available on the site, and interested REIA officials can contact Haines online.
