Are you considering joining a real estate investment groups? These groups are the real estate investor’s equivalent of a mutual fund, as you have multiple investors who pool money, resources and strategies with the goal of increasing their collective buying power. But is it really worth it to join an investment group? We’ll explore this in today’s article from The Short Sale Gal Kristine Zelazo.
What Are the Benefits of Real Estate Investment Groups?
Real estate investment groups offer many advantages, although they’re not the right choice for every investor. As with all investment opportunities, there is no one-size-fits-all solution because each individual’s investment goals are unique.
So which types of real estate investors can benefit from joining a real estate group? Well, it’s a good question, but first, you must understand the various types of investment groups that exist.
Some investment groups are for experienced, big money investors who have hundreds of thousands of dollars or millions of dollars to invest. There are other investment groups that are comprised of newer investors and others who wish to invest a more modest amount. In fact, some may only have $5,000 or $10,000 to invest — an amount that would be difficult to invest in real estate independently unless they were to opt for a wholesaling venture.
In both cases, you have multiple individuals pooling their money to purchase properties and together, they profit. The profits divided according to how much each individual contributed.
For newer investors, this can be a great option, as you can learn and benefit from some very experienced investors. But it’s important to be extremely cautious because many dishonest individuals target newer investors for scams and gimmicks. You also need to ensure that the individuals who are overseeing the actual investment process have a successful track record.
When it comes to developing investment strategies and deciding which properties to purchase, the degree of member involvement varies from group to group. A newer investor would benefit from a group that allows for more involvement as it provides you with a great opportunity learn and forge new alliances, partnerships and connections, whereas others prefer a hands-off approach.
A major benefit of joining a real estate investment group is that you can benefit from very profitable investment opportunities that simply would not be available to a single individual. For example, a hotel in a major city like New York can go for more than a billion dollars and very few individuals would have this kind of capital to put down on an investment. But as a group, it’s not unrealistic to invest in a big-ticket item such as commercial structures, malls, hotels and high rise apartment complexes. These larger investments often bring a much greater ROI and you can access a class of properties with far less competition amongst prospective buyers.
Investment groups bring many benefits, but there are some disadvantages too. The most significant disadvantage is the loss of control. This can be frustrating for some more experienced investors. It’s really vital that you find an investment group with fellow members who shares your investment strategy and general approach.
Need Help Getting Started in Real Estate Investing?
If you’re getting started in real estate, consider working with a real estate investing mentor like The Short Sale Gal, Kristine Zelazo. Getting started in real estate investing can be somewhat challenging, but when done right, you can stand to make significant profits. You’ll have lots of advantages in this regard when you work with a real estate investing and short sale expert like Kristine Zelazo, better known as The Short Sale Gal.
Based in Florida, Kristine works with both buyers and sellers and she is an experienced negotiator. So if you’re an investor seeking to get started in buying short sales and need a great mentor or wish to pursue a short sale transaction for the sale of your property, turn to Kristine Zelazo, the Short Sale Gal!
To get started with selling your home, simply complete the home pre-sale form to provide Kristine with additional information on the property in question. Then, call 786.570.0360.