So, we've talked about the different types of real estate investors, what they're typically looking for, and how you might work with them as a real estate agent running a real estate investor group. Now, I'll get right to it: why start and run a real estate investor group.
I think there are 4 compelling reasons for starting and running a real estate investor group.
- Toll Bridge
- Saleable, Appreciating Asset
- Attract Great Clients
- Simplified, Value Adding Stay In Touch Tool
“In an inflationary world, a toll bridge (like company) would be a great thing to own because you've laid out the capital costs. You built it in old dollars and you don't have to keep replacing it.” – Warren Buffett
Once you take the time to setup your real estate investor group, it continues to produce for you over time. When we talk about ways to monetize your real estate investor group, you will also see that you can get paid for access to your group or profit directly from the group by offering your services as a real estate agent to some of the members.
Saleable, Appreciating Asset
Last year in our local market, one of the investor clubs sold. While I do not have inside information as to the sale price, my best guess is that it sold for just under $100,000.
Investing in growing your own investor group is investing in a saleable, appreciating asset. The longer you own and grow your group, the more it is worth.
A real estate agent coming into my market could buy my real estate investor group from me and start generating commissions from it right away. It is like buying an established, up-and-running, highly profitable, lead-generating machine.
Attract Great Clients
I consider the first two reasons for starting and running an investor group as bonus reasons. The next two reasons for starting and running an investor group are the best reasons of all.