A Real Estate Investment Group (REIG) is a group of investors who pool their money to purchase real estate. These investors then split the interest and shares of the property. In some cases, the lead organizer also manages the group’s assets. Other times, the group is solely responsible for acquiring and managing properties. Some groups may also require a small amount of active participation. Once the group reaches a certain threshold, it may become a partnership.
Another advantage of a real estate investment group is its ability to invest in a variety of projects. Some investment groups purchase large rental buildings that would be difficult for a single investor to handle due to their cost and maintenance. A real estate investment group can handle these properties, focusing on multiple revenue streams to create a more stable profit stream and leverage opportunities. The most common type of investment group is comprised of several members who each have a certain amount of money to invest, which increases the chances of success.
Before forming a real estate investment group, research the requirements and how to operate a REIG. You may also want to speak with real estate professionals and other groups already in operation. Once you’ve identified the requirements for your real estate investment group, you can start soliciting members and marketing your group to potential investors. A successful real estate investment group will have a well-defined plan for the investment process. When looking for potential members, keep in mind that the amount of money needed will depend on the location of the real estate investment.
REIGs are not for everyone. Regardless of the type of REIG, you should consider whether it is right for you. If you can afford it, join a group and take advantage of the competitive returns. In the meantime, be sure to do your research and make your own decisions based on your own needs. You’ll be glad you did. It will benefit both you and your investors. You can never be too careful when you’re a member of a REIG.
Diversification in location, type of property, and debt-to-equity ratio is very important when it comes to real estate investing. It’s important to have a diverse portfolio of properties in different areas of a city. This will help you to compete with the big-time players in the industry. A real estate investment group is an invaluable source of support for aspiring real estate investors. Most people who are new to the field of real estate find themselves surrounded by a disbelieving and critical culture.
In the past year, REIG has acquired interests in 420 properties with a total gross asset value of $12 billion. The investments included approximately 70,000 multifamily units and 40 million square feet of office and industrial space. In addition to real estate investing, REIG has also successfully disposed of over $5 billion of investments. REIG management has a deep industry knowledge and extensive network of contacts with lenders and public investors. The Eaton Vance franchise helps REIG meet clients’ investment needs.