Joining a property investment club allows you to engage in large scale estate purchases that may not be possible for you as an individual investor.
In recent years property investors have been selling more and more properties through investment clubs rather than the typical estate agency routes. This is relevant especially for tenanted properties.
A property investment club involves a group of people who pool their resources and together purchase significant segments of property. However the club also facilitates a network of investors with different appetite of risk and specialism.
For instance, some landlords invest only in flats and some specialise in students or Houses in Multiple Occupation and when they have a few properties in their portfolio which is not in their area of specialisation, the property investment club comes handy as they can sell it to their friends.
For the buyers it is very helpful to buy directly from a seller who is part of their property investment club as they know each other well and also can get a better understanding of the property they are buying.
Advantages of selling through a property investment club:
- Save expensive estate agency fees - Contact with the buyer directly - thus saving the estate agency fees
- Quicker transaction - as the buyer is part of the same club and the finances are generally more transparent
- Lesser negotiation - selling to known members of the club generally involves lesser negotiation and more realistic aspirations on both sides