Jul 28 2016

A Basic Rundown on Real Estate Investment Groups

Published by at 2:55 pm under Investment

real-estate-investment-money-homesReal estate investment groups are a great way to begin your investing journey.

You may have heard of real estate investment groups, but do you actually know how valuable they are to one’s portfolio? Real estate investment groups are a bit like small mutual funds for real estate properties. If you are planning to own a rental property, but you don’t want to involve yourself with the hassle of becoming a landlord, a real estate investment group might be right for you.

About Real Estate Investment Groups

Companies tend to buy or build a set of apartments or condos and will then allow investors to purchase them through the company, thus being a part of the company’s financial plans. An investor can own single or multiple units of living spaces, but the company that is operating the investment group will help manage the units, take care of the maintenance, interview the tenants, and all the other procedures that a landlord will typically perform on the property.

Real Estate Investment Group Hunting Tips

In exchange for maintaining and managing the units, the company will take a percentage of the monthly rent. The standard version of a real estate investment group is that the lease is in the investor’s name and all of the units that are within that company’s hold, will pool a portion of the rent to, meaning that you will receive enough money to pay the mortgage regardless if it is empty or not. It is a safe way for someone to get into real estate investment. However, there are vulnerabilities that can haunt the mutual fund industry – that may hurt your investment as well. Like always, be sure that you perform the proper research to protect your assets.


Kuba Jewgieniew is the head of Realty ONE Group, a real estate brokerage firm that has nearly 5,000 associates.

 

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