It is no secret that real estate is a large investment and brings many questions, ideas, and decisions. A real estate investment club allows investors to join together and collaborate, work, and talk about expanding their investment portfolio through real estate. While there are many goals for this type of club, often, these individuals make the investments together and their focus is entirely real estate. If you wish to create your own real estate investment club and bring individuals with the same investing goals together, let’s talk about how to start.
How Do You Establish an Investment Club?
To start this type of club, it doesn’t require any large and tedious processes. In fact, one of the first things you must do is decide on the focus of the group. Do you want to find investors who are interested in investing together? Or are you more interested in establishing a group of real estate investors who answer questions for one another, help each other, provide resources and information, etc.? Once you have determined your focus, then, you can develop your goals, the structure of the club, the fees required, etc. Having this information prepared is essential as you look for investors. No investor is going to join a club if there is little organization and structure.
Who to Invite?
Once you have determined all the fine print for your real estate investment club, then comes the challenge of finding investors to join you. There are several ways you can go about this process to find your group members:
Social Media: Social media is an excellent way to expand your reach and share information. Post on real estate pages, as well as personal pages about the club. Ask friends and family to share promotional posts about the club and information about any upcoming meetings as well.
Websites such as Craigslist: Posting on websites such as Craigslist is another simple way to spread the word. Make sure you provide detailed information and appear professional in the ad.
Physical Flyers: Never underestimate the power of physical mailers, flyers, brochures, etc. These materials can reach a much older audience or those who have little time to browse the internet.
Your Own Clients: Have you worked with previous investors in the past? If so, contact them and ask them if they’d like more information on your investment club.
Seminars: Hold seminars and other events where you explain the purpose and mission of the club. This is an excellent way to answer questions and get people into a room where you can discuss the goals and mission of the organization with them.
Ideally, you only want between five to 10 investors in your club — particularly if your club is making investments together. By bringing too many individuals into the club, many issues can quickly arise.
What to Present?
Regular club meetings are an absolute must for your real estate investment club but what do you present and discuss? Here are a few ideas.
Speakers: Bring in experts in a variety of fields to help educate and entertain your club members. You don’t need to bring in other investors. Instead, you can bring in other financial experts, real estate agents, even contractors and interior decorators. Be creative in who you choose to speak.
Investment Property Discussions: Spend time looking at potential properties, the logistics of the sale, the pros and cons of each property, etc. You may also spend several meetings going over the methods and resources to find these properties.
Social Events: You can still have fun, invest, and educate at the same time. Host events where club members can get to know one another more personally. Consider events such as dinner parties to add a little diversity to the club.
Workshops: Host workshops that educate the investors, answer questions, and go in-depth on certain aspects of the real estate investing process. You can even discuss with your club members what type of workshops they would benefit from.
While starting a real estate investing club is fairly simple, keep in mind that there may be legal issues attached to these clubs. Do your own research to determine how to establish a club in your area. Then, work together to create a legal entity and get to work.