Real Estate
Everyone knows that Real Estate is one of the safest investment tools to use but, it can be intimidating to a lot of us. I found some interesting avenues you could take to ease the intimidation’s of jumping into a real estate investment and making it a fun and profitable experience
Real Estate Investment Clubs are a great way to do this either by joining one or by starting your own. Remember to do your own due diligence on any real estate investment deal that you go into and hire professionals to help you make better choices.
Real estate investment clubs are clubs formed by individuals who want to invest specifically in real estate.
Individuals have long known that it is possible to make money by investing in real estate, but very few, proportionately speaking, have the capital available to be able to do any investing. The solution is for individuals to join real estate investment clubs, so that their money can be pooled together in order to purchase properties that they otherwise could not afford to buy.
Real Estate Investment Clubs have been booming since the 1990s, so much so that the National Real Estate Investors Association was formed in the late 1990s. In 2002 they had 44 active affiliated groups; in 2008 they have over 230 groups…
Real estate investment clubs vary between those that focus on single family homes, and those that focus on commercial real estate.
http://en.wikipedia.org/wiki/Real_estate_investment_club
National REIA’s mission is to develop, support and promote local real estate investor organizations while serving the interests of the real estate investment industry through networking, education, leadership on legislative issues, and promoting professionalism and standards of excellence in our industry.
Here are list a Real Estate Investment Clubs to look at:
Start your own real estate club!!
Starting an investment club sounds intriguing. The prospect requires some hard work, however. You must decide how to handle members, delinquencies, and other big issues.
Investment clubs have been around for decades, but they are gaining popularity as a way to prepare for retirement. The concept is simple. A small number of people joins together to form a group with the purpose of using pooled money to buy stocks, bonds, or even real estate. The rise in property values has made starting a real estate investment club a more suitable choice for many hoping to earn money by pooling resources.
The members share the assets and liabilities of the investment club, which makes learning how to start an investment club a task to be taken seriously. The members have the chance to gain significant financial returns from these investments. Starting an investment group means addressing some potentially serious issues, however. These considerations are key to any investment start-up.
Set Investment Club Rules Regarding Number of Members
Most groups start with 10 to 20 members. Some consider couples a single member with one vote while others require each individual to be a member. Expect that people will come and go from the group and write into your by-laws the maximum number of members you will permit and the minimum before dissolving the club.
Participation Requirements When Organizing An Investment Club
Some investment clubs meet monthly and require each member to be present while others allow remote participation. Consider potential penalties for people who do not participate. It is not uncommon for groups to oust members after a certain periods of inactivity or to charge them a penalty. An investment club works because of equal participation.
Without participation, the active members put in more work for the same share. In a real estate investment club, decide who will handle issues related to the maintenance of the property. For flipping investment groups, determine how many hours each person will put into the property.
Online investment clubs are growing. These investment clubs may use private forums or email as a way to stay in contact. Setting participation requirements for members of an online investment club holds more significance since the members are not face to face.
Delinquencies and Withdrawals As Part of Investment Club Rules
A member may at some point be unable to contribute the agreed-upon amount. While kicking that member out immediately sounds tempting, the process can get complicated. The group’s financial portfolio depends on everyone’s participation. Decide what level of delinquency will force a member’s removal and how you will handle paying that member’s share of current assets.
Members use investment clubs as a way to put away money for major life expenses, such as houses or college. Work on how much and how often you will permit members to take their portion of the money. Also consider setting limits on the shortest-term investment you will permit.
Deciding Leaders When Organizing An Investment Club
Although the members of the investment club each have a say in the purchases, someone has to do the legwork involved in those decisions. A governing board or a rotating set of officers works well. When learning how to start an investment club, consider various options for choosing leaders. With rotating officers, everyone gets a say in the decision, but the annual treasurer will make the purchases, for example. The president will call all meetings and set the agenda. By rotating these duties, each person participates equally in the administrative work.
These decisions only scratch the surface of issues to consider when starting an investment club, but they represent the issues likely to cause conflict. Write by-laws and get these issues settled while everyone is still excited about the financial prospects.
Here is a list of websites that can help you start your own Real Estate investment club:
Other helpful websites:
