How does a real estate investment group work?

A real estate investment group manages a collection of properties, including rent, tenants, and maintenance, and sells these homes to investors, which can then be leased out. Also called a REIG, these investment groups make their money through monthly rent and home price appreciation.

Real estate investment groups, or investment clubs, are a great choice for both newbies and seasoned pros. They serve as a way for people who are interested in passive real estate investing to get involved without having to quit their day jobs. If you’re looking to jump into the Portland real estate market without the daily challenges of managing multiple rental properties and tenants, group investing may be right for you.

Benefits of joining a real estate investment group

Become real estate investor without landlord responsibilities

Interior of a Portland redevelopment that's ready for a real estate investment group.

What stops a lot of people from becoming investors into Portland properties is fear of inheriting landlord duties. Dealing with tenants, collecting rent, completing maintenance, and other responsibilities often prevent a lot of people from investing. Becoming a landlord can be a major hassle for those who don’t have the time or money manage properties. Luckily, these duties aren’t necessary for someone who wants to begin real estate investing.

With a real estate investment group, you aren’t responsible for tenant issues, maintenance concerns, or even visiting the property in person if you choose. These landlord duties are taken care of by group management so you can spend more time riding the housing market wave and less time potentially dealing with tenant issues.

Learn how to invest in real estate first-hand

There are a few reasons why newcomers to the Portland real estate market prefer group investing over trying to invest privately. Being part of a group allows you to learn tips and tricks from Portland investors with years of experience. Group membership also allows for networking opportunities and chances to make connections in local investment communities.

In addition, an added benefit to those new to real estate investing and other small-time investors, REIGs usually allow for bite-sized investment totals, such as $5,000 and $10,000. That being said, investment groups of course allow for and support exponentially larger contributions, those well into 6-digit investments.

Support during market highs and lows

Housing markets are cyclical. Throughout the life of a housing market cycle, there’s highs and lows, both year-over-year and seasonally. For example, any realtor will tell you it’s easier to sell a house in June than it is in December. When buying and selling homes slows down for the year, investors in these investment groups can rely on one another to be on the lookout for opportunities to snatch up hot Portland properties. This support makes staying on top of the ever-changing housing market that much easier when there’s multiple members keeping an eye on new properties emerging on the market.

Gorgeous interior of a Portland home that was redeveloped by a real estate investment groupHow to choose a successful real estate investment group

Ask for investment portfolio

Your investment group should have a history of high returns on investing in real estate properties. Trustworthy investment groups will proudly show off their rates of return on investments, investor capital rates and annual distribution rates. A REIG that can prove it’s a player in the community with a history of flourishing investment decisions is worth your time to research before making a final choice.

What are the investment group’s values?

Are the members only in it for the money? Or, do they care about the neighborhoods and community at large that will be affected by their investing? Investment groups that are – excuse the pun – invested in the community will make decisions with purpose and integrity. You want to work with a group that wants to thrive – and wants the community at-large to thrive as well. This may also include the group’s investment objectives, meaning who is the group trying to attract? For example, some REIG strategies revolve around building luxury remodels for families, large condominiums in a hot market for young professionals, and more.

Which neighborhoods did the group choose to invest in?

You’ll want to choose a group that has a deep understanding of the city they’re investing in to ensure they’re making educated decisions about the viability of the housing market. For example, Portland Development Group looks at the Portland Top 10 neighborhoods when choosing areas for redevelopment and properties to remodel and rent out. Make sure you know exactly which areas the group is choosing to invest in, and why they believe those neighborhoods promise large future returns.

Portland real estate investment and redevelopment

Interesting in jumping into the Portland real estate investment game? You’ve come to the right place. Portland Development Group has the expertise and history of success you can trust. Contact us to learn more about our investment portfolio and how to break into the Portland real estate market today.