Brad Bowman, CCIM
Thursday, April 19, 2012
What is "Group Investing"?
For Investors who want to take advantage of bargain real estate
prices but may not have the time or inclination to locate, reposition, and
manage the asset, Group Investing may be an appropriate alternative.
Investors join a "group", generally by acquiring shares in a Limited
Liabilitiy Company (LLC). The LLC is formed for a specific venture
and is professionally managed for the investors. The manager
generally receives a fee plus percentage of profits. Investors normally
receive a "preferred return" plus percentage of profits.
Depending on the property type, profits may be taxed at Capital Gain rates and
investors could enjoy tax benefits through depreciation. By joining with
others in a "group", your investments can produce income,
growth, or both. First Federal Properties has formed Group Investments to
acquire distressed properties and loans. The asset is repositioned, then
held for long-term income and growth, or sold for short-term
profits. Investors have enjoyed annual overall returns of 15% to 30% or
more (returns are not guaranteed) with very little risk. If you would
like more information, please contact us.
