Wednesday 23 October 2013

Things You Must Know Before Joining An Investment Club - Investment Clubs

By Frank Miller


Investment clubs are a great way to learn how to invest in stock or real estate. They are becoming increasingly popular. It is wise, however, to follow some simple guidelines before joining an investment club to be sure that you know what you're getting into.

What are the three types of Commercial Property Investors: find properties, secure the right to the purchase and sale agreement and can syndicate the deal by bringing in partners for equity capital when using OPM (other peoples money) or do the deal on their own to complete the acquisition. Active Investors: provide equity capital to active investors, an Investment Company, or Institutional Fund once an accurate Pro Forma is provided that satisfies the passive investor about the properties potential for return on investment (The Pro Forma will match the investment criteria the passive investor has decided is their investment strategy.)

Determine how much you can afford to invest. Some clubs have set minimums that must be met for investments. The beauty of investment clubs is that members pool their money to invest jointly. So, you don't need to have massive capital to begin investing.

Make sure that you find out how long your money will be tied up before making any investments. Some clubs have set rules on the minimum length of time for an investment. Don't get stuck paying a penalty that will negate any potential profits from your investment.

Learning from professional investors that successfully invest daily shortens your learning curve while increasing your return on investment dramatically. Acquiring professional investment knowledge can mean the difference between making and losing money. Commercial investment property education is not rocket science. In fact, the difference between you and a successful commercial real estate investor is focused time, education and the right market opportunity. Anyone can learn to invest in commercial investment property successfully with the right mentoring provided by a proven investment education resource.

With a relatively small fund of less than ten million there may only be a dozen or so acquisitions, all of which you will know about and can monitor, and you should have the confidence that the find manager will be very effective in dealing with this portfolio. Whether you are an experienced investor or not, funds can be a simple and flexible tool with which to invest in property. With particular reference to emerging markets, some companies run funds that invest in emerging markets in general, or individual funds that just cover a specific country. If this is the case, then depending upon which country or fund prospectus you prefer, you can invest varying amounts of money with several funds, to spread your investment further.




About the Author:



No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...