IDSG GROUP Logo

Finance & Real Estate

REIG | Real Estate Investment Group

Real Estate Investment Group (REIG)

A real estate investment group (REIG) can be any entity with multiple partners whose main focus and business is in real estate. Real estate investment groups may choose to buy, renovate, sell, and/or finance real estate properties for the sole purpose of obtaining a return. Real estate investment groups commonly buy properties, which they in in turn resell in part or as a whole to investors while captivating the responsibility for the administration and maintenance of these properties. Real estate investment groups typically do not chose to take on a real estate investment trust (REIT) status for they may not qualify for this status.

Key Take aways
  • A REIG can be any entity with multiple partners whose main focus of business is in real estate.
  • REIGs are not subject to any specific real estate entity, and are therefore not subject to limitations or requirements thereof.
  • REIGs can be structured in any type of business entity they choose. Most of them are structured partnerships.

Understanding Real Estate Investment Groups

Real estate investment groups are comprised of multiple partners or shareholders. Having multiple sources for capital investments provides for a greater pool of capital and a greater ability to invest more broadly. 

Real estate investment groups main focus of business in real estate, but they are not necessarily subject to any specific real estate entity status. As such, they have the flexibility to structure their businesses in a variety of ways. This also gives them the flexibility to create many different type of real estate investments with an array of investment opportunities. As such the real estate investment groups can provide different kinds of financing for properties, buy & sell properties, flip properties, and/or lease properties to property management companies for a portion of the rental income. Furthermore, they can lease-out properties themselves, or sell units of a property while maintaining the administrative control.

In general, there limitless opportunities and activities that a real estate investment group can do. Many REIGs will market themselves as such in order to make them easier to be identified by investors.

A real estate investment group might be referred to as a real estate investment club, however this is not the same as a REIG. For a real estate investment club is a business that is fixed, while a REIGs can choose to take on a different entity structures all together to better serve its clients. The two most common structures for a REIGN is either a partnerships or a corporation.

REIG Structuring

Our motto and vision is to perform and execute any transaction, interaction and/or service right from the start. This is why we use verified and proven methods to carry out our products and services. In addition to our experienced team of trained professionals, we are also committed to providing only top quality services.

REIG Partnerships

Partnerships can be structured in multiple ways. As such, a partner may choose to be involved in the actual management of the business or may opt not to. 

The Partnership agreements will detail the full provisions of the business including the minimum investment amount, the fees, the distributions, the partner’s voting rights, and much more. Some partnerships may enjoy a more collaborative membership structured forum for investment decision making, while others may employ a more laid back decision making process leaving the core management decisions of the business to a few executives. Generally, the partnership’s management team will source-out and identify potential deals most lucrative to invest its partners’ capital in as in accordance with the partnerships’ agreement.

 

Invest in Real Estate

Methodology

IDSG aims at knowledgeable and experienced investors who want to benefit from the attractive real estate market without having to acquire the real estate themselves.

IDSG purchases properties at prices below the market value lower usually directly from banks in order to be able maximize returns. IDSG than renovates these properties so that they can be rented out so that it optimizes the rental income. Finally, various residential units of the property are resold to owners and investors at the market price. This is how a profit is created in a relatively short period of time, which you as an investor can profit from.

Investment opportunities

You can participate via a profit-related loan starting from € 100,000. – with a fixed interest rate of 6 % per year supplemented by a project-related profit sharing. The loan can be for various terms ranging from 2, 3 or 4 years. The longer the term, the higher the potential profit sharing from 3% to 9% on the invested amount.

TermFixed interest ratePotential profit sharing
2 years6 %3 %
3 years6 %6 %
4 years6 %9 %

VIP Deals are possible starting from €500,000

In addition to the fixed interest rate of 7 %, the VIP Deals usually include a higher profit sharing percentage. Depending on the invested amount and the chosen period, the profit sharing per project with VIP Deals is 10% to 20% of the net project profit.                                                                                             

TermFixed interest ratePotential profit sharing
2 years7 %10 %
3 years7 %15 %
4 years7 %20 %