One of the ways to make money in real estate is a real estate investment club. That’s why it’s a good idea to learn how to start a real estate investment club of your own. So, what is it and how does it operate?
In this blog, we are going to walk you through the idea of a real estate investment club. First, of course, we are going to tell you exactly what it is and how it operates. Once we have defined it, we are going to walk you through the steps of how to form a real estate investment club.
What is a Real Estate Investment Club?
A real estate investment club is basically a means of networking between real estate investors. So, when you join one, you will be able to meet so many beginners and successful people in the field.
However, this does not mean that you have to have experience or a high level of knowledge in real estate. Many real estate investors have been in your shoes before. They joined real estate investment clubs and were able to acquire knowledge and experience. After all, aside from the goal of investing money as real estate partners, it is also a great way to learn how to become a real estate investor.
As for why should you form your own real estate investment club, there are two main reasons for this:
First, your local area does not have a real estate investment club.
Second, you have a real estate investing club but it does not represent your visions. However, even if there are such clubs in your area, why not go your own way and establish one?!
How Does a Real Estate Investment Club Operate?
Before you start your own real estate investing club, it is crucial that you understand how it operates. Generally, there are two ways a real estate investors club operates: group investments and independent investments.
As for the group investments, they come in the form of real estate syndication. Essentially, members pool their financial resources to invest in properties. What’s great about this option is that it lets beginner investors invest their money passively while having real estate professionals taking care of the business.
Investing independently, on the other hand, is obviously when a real estate investor engages in self-directed investing. He/she buys an investment property and operates it on his/her own.
Now that you know a little about the real estate investing clubs, let’s take a look at how to start your own investment club.
How to Start a Real Estate Investment Club: Do Research
Forming a real estate investment club requires that you do some proper research on the matter. Find out how it operates in full detail. Moreover, see if you have the means to establish one. Also, take a look at the environment around you; see if it is a good idea to form one in your local area.
How to Start a Real Estate Investment Club: Set a Plan
Planning a real estate investing club means that you need to take some factors into account. So, when you are setting your plan, think of the following:
- Why are you starting a real estate investment club? What do you want to accomplish with it? Find out how can a real estate investing club help you become a successful real estate investor.
- Do you want it to be for-profit or a non-profit organization?
- How many members do you want to bring in? Is it 20 people? Or do you not have any limitations on the number of members?
- What services could you offer that are different from other real estate investors clubs?
- How much do you intend on charging for membership fees?
Basically, the answers to these questions should form you a great plan. Therefore, make sure you have clear goals and objectives. However, what is more important is to stick with the plan. If anything needs modifications, make sure you check the possibilities first and then apply necessary modifications.
How to Start a Real Estate Investment Club: Get a Sense of a Real Estate Investors Club
A great way to learn how to start a real estate investment club is to attend other clubs’ events. Of course, you won’t be able to attend all kinds of events, but make sure you attend as many public events as possible. Not only that but also attend events held by different clubs to learn what makes each of them so special.
How to Start a Real Estate Investment Club: Consultation
Before starting to form your own real estate club, it is a good idea to consult with professionals. Check with an attorney and find out what regulations rule such societies. You should also check with a financial expert to study the possibilities as well as the financial requirements. This step will help you understand the costs that come with a real estate investing club. Finally, you should consult with real estate experts on how to operate the real estate part of the club.
How to Start a Real Estate Investment Club: Gather Members
Gathering the members might be the most challenging aspect of starting a real estate investment club. However, there are a variety of ways you can do it. First, you can do that by joining or forming a real estate investment network. Such networks usually have so many members from all different backgrounds. It will help you gather as many members as possible. Another way is to start with an online real estate investment club. We all know how fast you can reach out to people online. You can use social media or even create a real estate website of your own. There are no limitations to the ways you can attract members to your real estate investment club.
How to Start a Real Estate Investment Club: Set Your Bylaws
Bylaws are very important at this stage. It is also crucial that you set them at a very early stage of your club’s establishment. The club’s bylaws are a great way for commitment and discipline amongst the members. Also, you should distribute the roles of the members. There should be the president, the vice president as well as other positions. So make sure everybody agrees with these people before you get started.
How to Start a Real Estate Investment Club: Choose a Place
Real estate investment club members have meetings on a regular basis. It could be on a weekly, monthly or even quarterly basis. However, you will need a space for such occasions. So, there are a few factors you should consider when choosing a place for your club:
- Make sure it has a professional setting. These are business meetings and members need to feel the significance of what they are doing.
- Make sure it fits the number of members you have. You do not want it too small or too large. A small space, obviously, won’t fit the number of members you have. A large space, however, is too much if you are intending on having a limited number of members. Also, it will cost you more money, so why bother?!
- The place you choose for your club should be in a decent location. This means you cannot rent a place that is by the highway because it could get too loud at times. However, a place that is in a quiet area would be a good choice for business matters.
How to Start a Real Estate Investment Club: Marketing
One important step of how to start a real estate investment club is marketing. Proper marketing can take you a long way towards the success of the real estate club. When you first start, you need exposure. Therefore, a good strategy would include social media, a blog, and an official website.
How to Start a Real Estate Investment Club: Keep Your Members Engaged
Finally, in order for your real estate investors club to succeed, you must keep your members engaged. You can fulfill that in various ways:
- Create a newsletter that is sent automatically to their emails. Have all the updates and newest regulations. It should also include summaries of the club’s meetings.
- Hold events in which you bring in speakers. They could be anything from public speakers specialized in self-development or even real estate experts. Such activities are great to keep up the variety and interest of members.
It is really easy to learn how to start a real estate investment club. However, the real challenges are ahead of you. But, of course, they won’t be much if you manage to plan it right.
Now that you know how to start a real estate investment club, click here to learn all about real estate investing.