8.21.2009

Commercial Real Estate Clubs is Really Helpful

Many investors are turning to commercial real estate clubs. These clubs bring together investors from the entire spectrum of the industry for investment, learning and networking purposes.

Commercial property clubs first gained popularity in the early days of the real estate boom. Modeled after stock investment clubs, commercial property clubs have formed all around the country to bring investors and other members of the commercial investment community together. Some clubs function as meeting places for networking and learning more about the local market and industry in general. Others pool their money together and invest in property to increase their returns.

Many investment clubs of this nature bring together novice and expert investors. The novices understand the power of commercial property but maybe don't have the time, patient, knowledge or contacts to make a deal work for them. Many of these types of investors are looking for passive income from their investments and find a perfect source in commercial investment clubs.

Passive income is any money you are not actively working for. By putting your money in the pool and helping finance a deal you reap the monetary benefits but don't have to root the deal out yourself. Plus, if you get involved in an investment club with commercial real estate professionals, you get their years of experience and get to sit back and collect the benefits. In addition you have the added benefit of sitting back and seeing what kinds of deals they do on a regular basis. In a sense, you're paying yourself to learn!

Investment clubs of all sorts have their ups and downs. You want to make sure you joining one that fits your goals, comfort level and ideas about investing. Some charge dues to be able to afford to host seminars or bring in guest speakers, so try them out for a couple of meetings to see if you're getting what you pay for.

Even if you aren't looking for a silent partnership, commercial real estate clubs are great ways to network with commercial real estate members. One of the best ways to get your feet wet in real estate investment without risking tons of cash and endless hours of frustration is finding a mentor to guide you. Finding a professional who can steer you through rookie mistakes is one of the benefits of investment clubs. You can benefit from someone else's years of experience and hard work in the field, and build a valuable friendship and professional contact in the process.

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