Sunday, October 20, 2013

Investing In A Property Fund - Some Place Else

Investing In A Property Fund - Some Place Else

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.

If you enjoy socializing or face-to-face interactions, then joining a local investment club may be the best option for you. Members typically meet once a month. Local investment clubs often invite investing professionals or experts to speak at meetings. These talks are excellent opportunity for members to learn from others' investing experience and to ask questions. You can easily find local investment clubs through word of mouth. Ask colleagues, neighbors, friends and relatives for recommendation. Chances are they may belong to a local club or know of someone who is a member of a local club. Online investment clubs offer convenience. They usually have virtual chat rooms or forums where people can post questions and answers. If you don't have as much time to mingle with others or attend local meetings, then you may be suited to joining an online investment club.

Some medium term investments could be buildings or land in up and coming areas, that are perhaps two or three years away from becoming popular locations. Once these areas have risen then they can be developed, converted or resold, with the proceeds then re-invested within the fund. Short term acquisitions would be 'flipped' or developed within a 12-18 month period. This could include buying off-plan units at a discount, and perhaps bulk buying them for an even better price. Many funds often have the ability to go to a developer and buy out a whole development at a very low price, and then re-sell the units quite quickly. With a fund being structured in the above way it can be very pro-active and dynamic, encompassing the various ways of investing in and developing property, all under one roof. Whether you are investing 10,000 or 1 million into a fund, you will own a part of, and benefit from multiple properties, including being involved with purchasing individual units, through to land banking and being a property developer.

The fact that a fund with a significant net worth would be buying up property, rather than an individual, also gives a lot more buying power, which means properties can be bought more quickly and for a better price, which is to the benefit of all the investors. Although investing in a fund would require no effort on your part, you would receive regular updates about the acquisitions that the fund had made, and what was happening with them. During the course of the time that your money is invested you would be able to see the detailed workings of each investment, together with the profits from each. If you are relatively new to property investment this would be a good way to build up your knowledge and experience that you could perhaps use to put into practice upon maturity of the fund.

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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