Real Estate Investment Club Structure
While the securities and exchange commission sec does not regulate investment clubs specifically some club activity can fall within the purview of the sec which lays out a basic structure and rules for clubs.
Real estate investment club structure. In the case of real estate investment groups members are focused solely on investing in real estate. If you know how to set up a real estate investment company for success scaling your business will be much easier. The problem for many investors is that real estate investing groups can charge monthly fees up to 100 which eats away at any return on the investment. For instance if the club invests in securities it must register with the sec under the investment company act of 1940.
They can provide extremely useful information for both the novice and expert real estate investor. But since each investment club is unique each club will need to decide if it has any registration requirements. The answer is in joining a real estate investment group a club of other real estate investors that help each other sharing their experience and resources. Real estate investment clubs are groups that meet locally and allow investors and other professionals to network and learn.
If so the sec may regulate the offer and sale of those membership interests. An investment club may be an investment. If you can t find a club you like in your area you might consider starting a new real estate investment club. Only once you know the real estate investment company structure can i recommend even thinking about moving forward.
You can define the focus of the club and seek to attract like minded members. Membership interests in the investment club may be securities under the securities act of 1933 securities act. Starting a real estate investment company is a lot easier with the right structure and foundation in place. You ll want to reach out to people who have expertise in different fields but who are motivated to gain or provide knowledge about real estate investing.