The Power is Now

Should You Join A Real Estate Investment Club?

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Whether you are an experienced player in the real estate business or you are just starting your career in the industry, the truth is investing in real estate can be very intimidating and draining. It can also be very expensive to start investing in real estate and dealing with the complex technicalities involved in real estate investment might just put many off investing in real estate.

However, joining a real estate investment club could be just the thing you need to help further your business. It is also an excellent place where you can learn so much more about the business while also networking with loads of like-minded people in your community.

What Is A Real Estate Investment Club?

A real estate investment club is a forum that brings real estate investors, real estate professionals, and industry experts together to network, learn, and do business.

The club usually can be made up of experienced investors or new investors, or even a mixture of both as it all relies on how the club operates and accepts new members into its fold.

Most investment clubs are recognized under the law, and there is usually no limit to the number of people who can join or set up an investment club. However, in some clubs, membership comes with payment of certain fees and levies that are used to run the club.

How Investment Club Operates

A real estate club tend to operate in two ways:

  • Group Investment

An investment club that operates in this manner is a club where members of the club contribute towards jointly owning an investment in real estate.

The investment is bought in the club’s name, and members of the club share the profit or loss on the investments amongst themselves.

  • Independent Investment

In this type of investment club, an individual investor buys the real estate property on his own. He decides the property to buy or not buy on his own, and he shares his profit or loss with nobody else.

Benefits of a real estate investment club 

The benefit of a real estate investment club are numerous; some of them are:

  • It would allow you to network with people of like minds which can be very valuable when you are looking for properties to invest in.
  • Being a member of an investment club would allow you to strike partnerships that you can bank on to invest in income properties you might not be able to invest in on your own
  • A real estate investment club would regularly seek to educate and inform their members of ongoing opportunities in the market and how they can capitalize on such opportunities.

Dangers of joining an investment club 

  • There have been stories of investors who have been scammed off millions of dollars after joining a fraudulent investment club.
  • There is every probability that you could get into a conflict with one or two members of the club which could make your continued membership of the club untenable.
  • In group investment clubs, the club could invest in an unyielding asset that may not be yielding the desired ROI, and getting your money back could be a very tough challenge.
  • Some investment clubs have a very high cost of membership, and some also request that their members invest a lot of money or purchase certain courses when joining them.

The Power Is Now, continues to keep you updated with the latest news in the real estate market, as we strive for advocacy of homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. In this regard, we have an amazing team of professional realtors— VIP Agents stationed nationwide to help you with anything you need in attaining your homeownership dreams. You can get in touch with the VIP Agents at https://www.thepowerisnow.com/vipagentsservices/. If you can’t find an agent from your area, you can contact me directly for a referral. Also, ensure you stay updated with any developing real estate market news by regularly checking our blog page at https://www.thepowerisnow.com/blog/. You can choose to set up an appointment to speak directly to me at https://calendly.com/thepowerisnow/ericfrazier. 

Disclaimer: The views and opinions of Eric Lawrence Frazier are his own and do not necessarily represent views of First Bank or any organization affiliated with Eric Lawrence Frazier, or the Power Is Now Media Inc. First Bank is an Equal Credit Opportunity Lender. Eric Lawrence Frazier MBA is also a Vice President and Mortgage Advisor with First Bank. NMLS#461807 and a California Licensed Real Estate Broker DRE# 01143482. Email: Eric.frazier@fbol.com. Ph: 714- 475-8629.

Eric Lawrence Frazier MBA 

President and CEO

The Power Is Now Media Inc.

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