Real Estate Investing Facts

This article goes into some of the ground rules that need to be set up prior to starting your investment club. All members should be made clear of these rules before becoming a member and not have accumulated a large number of debt loans.

Starting your own investment club should not be anything which gives you worries. Since you’ll be working with your family and friends you should be at ease with those around you in your club. You can be assured of having a successful club if you follow a few general and commonsense rules from the beginning.

One of the biggest mistakes that a lot of new club founders make is that they do not tell the club members upfront that they may lose money with their real estate investments or trades that they make, in the beginning. Not every real estate investment or trade that the club will make will be a winner, and this is especially true during the first few months of the club. Since many of the investment clubs which are created do not have many members who are familiar with buying real estate or making stock trades, it is a learn as you go experience for the majority of the club members. You must inform potential members before they join that the money they put up for investment should be money that they can stand to lose, and not suffer any hardship because of the loss.

While we are discussing money, you need to make sure everyone agrees upon what the contribution will be for each member on a monthly basis. The amount of the monthly contribution should not be more than what any one member can afford to put in monthly. If all of your members but one can afford to put $100 into the club account, and the one can only put $75 into the club account monthly, then everyone should only put $75 into the club account. All monthly contributions must be equal to sustain the equality of the group and its integrity. The most common monthly contribution amount used for investment groups is $20 per month, but you and your group are not bound by this amount by any means.

Make the club official by partnership agreement and have everyone who wants to be a member of the club sign the agreement. It is crucial to the success of the club for everyone to know what is expected of each individual, and the group as a whole. By having a signed membership agreement and a copy given to each member, there can be no disagreements later about what the club was built upon.

Do not try to start a large investment group. Having too many members can cause many problems, such as a greater risk for arguments and fragmentation of the group. For your group to work as a team, you need to keep your team to a manageable level of no more than fifteen. Most investment clubs do not exceed 10 members.

Starting your own investment club should not be something which makes you nervous or causes undue concerns. Concentrate on starting with people you know and trust and create a group that can get together and have fun, and you will see that your club will be a huge success.

These rules are the basic rules that need to be implemented into the club. If you have any other rules that you deem necessary make them aware to other members before you begin your investment club.

Real Estate Investing in Canada

Kick Start Your Foreclosure Investing

Hans Anderson

Subscribe in a reader

Republished by Blog Post Promoter

When you set up your investment group make sure that the appropriate paper work is done and your club is registered with the proper business registration.

Just about anything you want to do which includes mixing your cash with the cash of others include some type of paperwork to be done. This is also the case when you start an investment club. The good news is that your investment club does not require a lot of paperwork to be completed before you can begin making trades. Most of the paperwork to be handled after the club is established will be much more enjoyable because it will pertain to the purchase and sell of stocks.

Most individuals who begin an investment club will do so by forming it as a partnership. By making your club a partnership, it is a lot easier when dealing with the inevitable taxes. Your group will have to file the proper paperwork for this, which includes an SS4 form, which is for the group’s EIN, or Employee Identification Number. These forms can be downloaded directly from the Internal Revenue Service’s web site. Once you fill out the form and send it back in via fax, you can get your EIN almost immediately. At tax time, your group members will have to individually fill out and file a Schedule K for their tax returns.

You should also look into filing your group as a business within your community. Depending on where you live, the rules governing investment clubs may vary considerably, so do your homework by contacting the proper local offices. Usually it is just a quick form filled out with the name of your club being registered.

Your group will have need of a brokerage or bank account. This will need to be covered at the first meeting, and a decision reached by the members. Whether you decide on a brokerage or bank account, you will need to supply a copy of the group’s Articles of Incorporation or you Partnership Agreement. These forms can also be downloaded from online, and you need to take them already filled out with you to open the group account.

For the majority of investment clubs, the only kind of major legal issues which will need to be taken care of is the taxes. Each member of the group is responsible for filing any profits made within the year on their income tax return. If the group suffers a loss instead of a profit, then each individual would file the loss as a deductible expense on their income tax return. Any expenses the members have from the club can also be deducted, like the brokerage fees. Of course any tax issues should be dealt with by a professional tax preparer or an accountant.

When setting up your investment club with the appropriate licenses its not a bad idea to consult a Lawyer to help with the paper work. You want to set up the investment club in the safest and the most advantages way for the club and its members.

Real Estate Investing in Canada

Kick Start Your Foreclosure Investing

Hans Anderson

Subscribe in a reader

Republished by Blog Post Promoter

Hi,

Isn’t it true that…

“Unless the pain of staying the same is greater than the pain of change, then usually, we won’t change”?

One thing that all successful people have in common is a burning desire to achieve their goal.

They want to succeed so much that it is virtually impossible for them to stay the same. So they push themselves to become successful and make no excuses.

Here are a few of my members who have done just that! And my hat’s off to them for taking the initiative to make that change for the better!

The truth is, they are no different from you or me, or anyone for that matter. They just have a burning desire to succeed and took action.

So I hope their stories will encourage you take action as well.

********************************************************************

“I did manage to sell the contract for a benefit to myself in excess of $7000 after taxes.”

I started with B.C. foreclosures after some experimentation and solo activity in the real estate arena. I had no success in locating the ‘motivated’ sellers.

Starting in August of 2008 I got into the list and began a postcard campaign (only 4 names to start with), on the second mail out (12 names) I got a couple of responses and one of them converted into a contract.

The seller was very happy to have someone working to resolve the foreclosure situation; something that he was really not able to do himself.

After a struggle with three different potential buyers, including
one that managed to anger nearly everyone including his own lawyer, notary and realtor; and a ‘time-out’ during the Christmas/New Year’s holiday time, I did manage to sell the contract for a benefit to myself in excess of $7000 after taxes.

Until starting to use the B.B foreclosures database I was finding zero leads. Now I have many, including one that has the potential for 6 figures!

Thank you Aiden.

-Regards,

David M. Malinski, British Columbia

********************************************************************

“Leaving my job to do this full-time!”

“At first, it seemed like I was going no where. I was trying to contact the sellers on the list and I didn’t get any responses from any of them. I tried for 4 weeks and I was about to give up. Then Aiden told me to just stick with the program and keep going.

And I am so glad I did! Because about a week and half later, I
connected with one of the sellers!

We worked out a deal and I was so excited when I got my first check ($16,213.65!) and now I am in the process leaving my job to do this full-time!”

-Shirley Wielding, Alberta

********************************************************************

“$39,876.25 In 45 Days!”

“I sent letters out to pre-foreclosures on the list and one of the sellers contacted me almost immediately. They had a family medical situation which I was able to help them with.

Within 45 days, I renovated the property, did an open house and then sold the house for a $39,876.25 profit.

And all the while, the sellers were so glad that I had helped them solve their problem.

I would recommend joining Foreclosure Insiders Club to anyone who is serious about making a lot of money in real estate honestly and ethically.”

-Trent

And there are more encouraging stories.

To Your Success!

Aiden Win

Mr. Foreclosure

Canada’s Largest Database Goldmine Of Pre-Foreclosure Real Estate For Up To 50% Below Market!

Subscribe in a reader

P.S. If other people’s success makes you uncomfortable, then good,
keep associating with them to the point that you just can’t take it
anymore and HAVE TO succeed along with them! Why not start by
joining Foreclosure Insiders Club today…