How Real Estate Investment Clubs Work

By: Sarah Siddons  | 

How to Start a Real Estate Investment Club

Always know your investment philosophy. And you might want to take that Trump guy’s advice -- he seems to be doing all right.
Always know your investment philosophy. And you might want to take that Trump guy’s advice -- he seems to be doing all right.
Timothy A. Clary/AFP/Getty Images

If you can't find a club you like in your area, you might consider starting a new real estate investment club. You can define the focus of the club and seek to attract like-minded members. 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. You'll also want to think about the professionals you might invite to speak at your meetings.

You can start the process by conducting research.


  • Learn about the purpose and structure of existing clubs.
  • Attend a few meetings to get a feel for how they operate.
  • Consider what they offer their members.
  • Decide how you want your club to be similar to and different from the clubs you research. Jot down ideas and activities that seem worthwhile.

As part of your research, familiarize yourself with key real estate laws and current market conditions.

Once you have defined your mission and have a feel for what you want your club to offer its members, recruit people with expertise in real estate law, finance and accounting who can provide information lend their perspectives about potential real estate deals to the group. Figure out how the members will stay in touch. You also might want to create a monthly newsletter or an online discussion board.

You'll also need to think about how you want the club to grow. You can set up a website to market your club, or use local publications to recruit members. It's OK to start small. As your club provides value to its members, the membership is sure to increase.

Since money will be changing hands, think about incorporating to protect your personal finances. Decide whether your club will be a for-profit or not-for-profit entity. Each structure carries certain legal requirements and rewards. Your state's attorney general's office can provide more information about forms you must file.

Your group can elect officers such as a President and Secretary. Officers and members can help you decide how to manage dues, how often to meet, where to meet and how important decisions will be made. You might also want to create committees to find expert speakers, plan special events or seek out local real estate deals.

Whether you find a club or create one, embarking on the high seas of real estate investment can be a challenge. But it can also be rewarding -- and profitable. Stay alert and stay informed, and you should be all right. You can start by following the links below.

Real Estate Investment Club FAQ

What is a real estate investment club?
In a real estate investment club, you don't typically collaborate on investments. Instead, members come together to network, gain knowledge about investment practices, get hot tips about available commercial or rental properties, become familiar with laws and regulations, understand market trends, learn from guest speakers and lots more.
Are real estate clubs the same as REITs?
Real estate investment clubs are different from real estate investment trusts or REITs.
How do I find a real estate investment club?
You can use the Internet to find local clubs and resources, or join an online club. The National Real Estate Investors Association, a non-profit trade association, is a good starting place. If you can't find a club you like in your area, you might consider starting a new real estate investment club.
How do I choose a real estate club?
Be sure to think about what you want from a club. Support, information and motivation are common goals. Identify the real purpose of any real estate investment club you consider joining. Attend a few meetings before you pay dues. Ask questions about the group's founders and their motives for setting up the club.
Do you have to invest when you join a real estate club?
One real estate investor estimates that 95 percent of people who attend club meetings never invest, or give up after one or two tries.

Originally Published: Aug 5, 2008

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More Great Links


  • Bigger Pockets, Investment Real Estate Social Networking Community.
  • Carr, M. Anthony. "Real Estate Investment Clubs Provide Good Training Ground." Realty Times. November 2004.
  • Creative Real Estate Online.
  • Foust, Dean. "Real estate investment clubs." August 4, 2005.
  • Toh, Alvin. "How to Start a Real Estate Investment Club."
  • Weston, Liz Pulliam. "Real estate clubs ride the housing boom." 2005.