How Real Estate Investment Clubs Work

You may have heard there’s still money in real estate. It sounds interesting, but all the same, you’re a bit confused by the ins and outs of the market. What are REITs? What’s the minimum down payment for a house so I don’t have to pay PMI? And you know there are scams out there. Is there a way to learn more, mingle with some like-minded people, perhaps find a more seasoned investor to mentor you? Absolutely. Just find a real estate investment club.

Fannie Mae
Alex Wong/Getty Images
Many lenders like Fannie Mae are reporting losses because of the housing market downturn. However, those loses don’t have to translate into losses for individual investors.

You might be familiar with the stock investment club model, in which members pool their money to buy stocks and bonds. In a real estate investment club, you don’t typically collaborate on investments. Instead, members come together to:

  • network
  • gain knowledge about investment practices
  • get hot tips about available commercial or rental properties
  • become familiar with laws and regulations
  • understand market trends and how to profit from them
  • trade information about vendors for property improvements and services
  • get the advice of legal and financial professionals
  • learn from guest speakers
  • find a supportive group of like-minded individuals with common goals

Read full article on howstuffworks.com