Real Estate Investment Club Structure

If you can t find a club you like in your area you might consider starting a new real estate investment club.

Real estate investment club structure.

In the case of real estate investment groups members are focused solely on investing in real estate. Investment clubs can be informal groups but they re often organized as partnerships. While the securities and exchange commission sec does not regulate investment clubs specifically some club activity can fall within the purview of the sec which lays out a basic structure and rules for clubs. Only once you know the real estate investment company structure can i recommend even thinking about moving forward.

If you know how to set up a real estate investment company for success scaling your business will be much easier. For instance if the club invests in securities it must register with the sec under the investment company act of 1940. The problem for many investors is that real estate investing groups can charge monthly fees up to 100 which eats away at any return on the investment. If so the sec may regulate the offer and sale of those membership interests.

Some clubs have their own stated objectives such as value investing or investing for income. You ll want to reach out to people who have expertise in different fields but who are motivated to gain or provide knowledge about real estate investing. They can provide extremely useful information for both the novice and expert real estate investor. Real estate investment clubs are groups that meet locally and allow investors and other professionals to network and learn.

Starting a real estate investment company is a lot easier with the right structure and foundation in place. But since each investment club is unique each club will need to decide if it has any registration requirements. You can define the focus of the club and seek to attract like minded members. Membership interests in the investment club may be securities under the securities act of 1933 securities act.