There are many people around the world that are finding it tough financially. With the present state of the economy the stress of finances is enormous. Many people are looking for free financial tips so that they can get back on track financially. You may be interested in this article if you are looking for financial advice.There's no such thing as a free lunch, and that especially applies to supposedly free financial advice. Here's how to spot them so you don't get stung.


Saturday 26 October 2013

Things You Must Know Before Joining An Investment Club - Investment Clubs

By Frank Miller


One of the most hassle free ways of investing in property is through a fund, whereby you can invest any amount of money you wish (usually with a minimum of 10,000) into a fund that will be managed by experts in that relevant area. The fund managers will then decide where best to invest the money that has been raised, in order to achieve the best possible return. Most funds have a fixed investment timescale of between three and five years, so you know when you will see a return on your money. There are many benefits of investing through a fund, rather than buying actual property. Once you have decided to invest in a particular fund then you do not need to do anything else - all the hard work is down to the fund managers who do all the research, legal and paperwork. It is in their interest to ensure that the money is invested wisely as they only get paid if and when the fund makes a profit at the end.

Investing in a fund also spreads your money over a number of different investments or properties, similar to investing in a portfolio, as mentioned in my article in the last issue of Invest Someplace Else. The fund will buy a variety of properties in order to create a good portfolio within the find, even if the fund is concentrated on a certain geographical area. For example a five year fund will probably look at short, medium and long term investments within that fund. The long term aspects of it are likely to be land banks, where parcels of land are bought at a low price and simply 'banked' for 4 or 5 years before being re-sold, hopefully for a significantly higher price. We have witnessed land price increases of up to 400% in some of the areas we operate in over the past 2 years, and if you pick the right areas at the right time the returns can be even higher.

Passive investors: provide equity capital to active investors, an Investment Company, or Institutional Fund once a current Pro Forma is provided that satisfies the passive investor about the properties potential for return on investment (The Pro Forma will match the investment criteria the passive investor has decided is their investment strategy.) The combination of both passive and active roles . . . is the third way to invest in commercial investment property and can take the legal form of a Joint Venture Partnership (JVP). This entity may provide deal analysis, contracting, acquisition, asset and physical property management and funding for the commercial property by an active investor, or entity with a single passive investor or group of investors.

Make sure that you find out how long your money will be tied up before making any investments. Some clubs have set rules on the minimum length of time for an investment. Don't get stuck paying a penalty that will negate any potential profits from your investment.

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.

With a relatively small fund of less than ten million there may only be a dozen or so acquisitions, all of which you will know about and can monitor, and you should have the confidence that the find manager will be very effective in dealing with this portfolio. Whether you are an experienced investor or not, funds can be a simple and flexible tool with which to invest in property. With particular reference to emerging markets, some companies run funds that invest in emerging markets in general, or individual funds that just cover a specific country. If this is the case, then depending upon which country or fund prospectus you prefer, you can invest varying amounts of money with several funds, to spread your investment further.




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