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

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By Frank Miller


Commercial investment property investors look for successful investment opportunity to build wealth. Commercial real estate investors are no different than other types of investors. Finding the potential for successful acquisitions keeps an investor searching for additional ways to create passive income. The keys to becoming a successful investor in commercial investment property are FOCUS (education) . . . and finding a property in the right market phase of opportunity. Where does an investor begin a professional education in commercial investment property? Make your decision to begin where you are right now. FOCUS on the type of investor role fits your goals , . . active, passive or a combination of the two . . . then FOCUS on an investment time frame that meets your goals: long term, short term or a combination.

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.

Before signing anything, read everything over thoroughly. Be sure that you understand your commitment and are comfortable with the terms and conditions of the investment club. Check for any hidden fees or penalties for early withdrawals. Investment clubs can be an interesting and fun way to learn and invest. As long as you make wise decisions and keep a diverse portfolio you will likely be able to make some decent profits through your investment club.




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