What is a Real Estate Investment Group?

Tiffany Manley

A real estate investment group is made up of individuals who invest in real estate properties. There are many benefits to be had from joining a real estate investment group. Investors can pool their money, make good use of networking, recommend developers and managers, negotiate better deals and possibly receive a few incentives as a means to draw in the group’s business.

A real estate investment group consists of individuals who invest in real estate properties.
A real estate investment group consists of individuals who invest in real estate properties.

Rental property investors used to make up most of the real estate investment groups, but in modern times, there are many types of groups. In addition to rental property, a real estate investment group might invest in properties that they hope to flip, or sell quickly for a profit after a short time of minor renovations. The group also might decide to completely renovate a property and sell it after taking great care to restore it.

For many people, being able to benefit from the money of several investors pooled together is one draw of a real estate investment group. An individual might not have the ability to purchase a property on his or her own, but when several other investors are involved, the group might be able to acquire the property. This also might open up a range of investment opportunities that previously were not feasible for an individual investor.

Networking is a factor in many businesses. This is no different in the case of a real estate investment group. The real estate business thrives on leads, so the more members of an investment group, the more people there are with whom to make connections and from whom to receive leads. Networking also is a great way to gain knowledge of which developers and managers are trustworthy and those with whom it would be desirable to do business.

Many times, there is power in numbers, and this applies to to real estate investment group as well. With the collective buying power of these groups, many people find it is easier to negotiate better deals on properties because the group has the ability to make large volume purchases. A seller is much more likely to negotiate a deal with someone who is willing to buy all of the offices in a building versus someone who might be purchasing only one.

Some developers might offer incentives to members of a real estate investment group. These might be in the form of cruises, airfare or resort stays. The purpose of such incentives is to catch the attention of investors. Many people might learn of available properties by receiving and using incentives.

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