Real Estate Investment Group (REIG): Here’s What You Must Know

Real Estate Investment Group or REIG can be a good fit for you if you are someone new to real estate investing. Even if you aren’t new to real estate investing but lack the time or money to do it, REIG is for you.

But what exactly is a REIG?

In essence, REIGs allow the investors to pool their resources and take advantage of the potential returns of real estate ownership. Not only this but they free up the investors from the hassle of actively managing real estate properties.

Doesn’t that sound great?

So, let’s dig deeper and understand what Real Estate Investment Groups are, how they work, and much more.

Here we go!

What Is A Real Estate Investment Group (REIG)?

A REIG is a group of private investors that focuses on real estate investment, by pooling money, expertise, knowledge, and/or time to purchase income-generating properties.

Basically, all REIGs combine funds from different members and investors and utilize them to buy and invest in real estate while giving the participating investors a return, such as an interest payment or profit split.

In broad terms, REIGs give investors access to the advantages of real estate investing – like potential capital appreciation, tax benefits, and passive income – while lowering the costs and risks related to owning a single property.

Real Estate Investment Groups can opt to purchase, finance, sell, or renovate properties in an effort to increase their earnings. Purchasing multiunit properties, selling units to real estate investors, and taking over property management and upkeep are common activities that REIGs perform.

Each REIG will have a different investment strategy, but it may use any of the common real estate investing strategies, such as buying commercial real estate, rehabbing and renting, holding mortgage notes for properties, or fixing and flipping properties.

How Does A Real Estate Investment Group Work?

As a potential investor, it is important to understand the functioning of REIGs. Check out below how they work:

  1. A REIG is formed by a group of individuals who collectively want to invest in real estate.
  2. To structure this group, these individuals usually form a limited liability company (LLC), partnership, or other legal entity.
  3. Depending on the size of the group, minimum investment requirements, and the overall investment strategy the members contribute money to the group. This money is then grouped to form a large investment capital.
  4. Further, experienced professionals in the management team conduct research and perform analysis to identify potential investment opportunities for acquiring suitable properties.
  5. Once a property is acquired, the REIG management team takes charge of the property management. This may include maintenance, repairs, tenant management, and other day-to-day management activities.
  6. According to the terms of the investment agreement, once the returns on investment are generated they are distributed among the group members. The distribution can be based on some predefined criteria or factors like capital contribution percentage.
  7. Talking about decision-making, the structure and governance of the REIG play a great role. Usually, the management team makes strategic decisions on behalf of the group, but some groups may also allow the members’ involvement in the decision-making process.
  8. Lastly, the investment duration and exit strategy of a REIG can vary from group to group depending on the specific investment objectives and the terms mentioned in the investment agreement.

Pros And Cons Of Joining A REIG

Below are some pros and cons of a REIG that you should consider before joining one Have a look!


  • You can invest in bigger real estate deals and hold tangible real estate with less money.
  • Because the experts in the group take care of all aspects of property acquisition, and management. Also REIGs offer a passive investment opportunity.
  • Joining a REIG gives you access to the knowledge and experience of seasoned experts. They are well-versed in the real estate industry.
  • You and the other investors split costs associated with maintenance, repairs, and property management when you invest in a REIG. This can lower personal financial obligations and increase cost-effectiveness.
  • Joining a REIG provides you opportunities to network, and work together with other investors who share your interests.


  • It is possible for investment goals, management styles, duties, or outcomes to clash or come into conflict.
  • You have little authority to make investment decisions if you’re a member of a REIG. The group’s management team makes strategic decisions, which can restrict your ability to personalize investments to your tastes.
  • Depending on the terms of your agreement, it could be challenging to pull out your money.
  • A membership fee might lower your returns.
  • Generally speaking, REIG investments are less liquid than stocks or other publicly traded securities.


1. How can you find REIGs to join one?
To find REIGs, using professional networking groups and websites like LinkedIn or the National Real Estate Investors Association can be a good start. You can also reach out to financial advisors or local real estate agents who specialize in real estate investments. Also they may help you connect with professionals or firms involved in such investment opportunities.

2. How much money do I need to join a REIG?
Thoroughly perform due diligence while assessing REIGs. Examine the management team’s performance history and experience. Also, understand the group’s investment strategy and objectives, and pay close attention to the terms and investment structure.

Further, it is also advisable to speak with a real estate expert and financial advisor. They can help determine whether REIGs are suitable for you depending on your investing goals, risk tolerance, and financial circumstances.

We hope you find this helpful!

If you are looking to buy or sell real estate properties in New York by seeking expert assistance, get in touch with Elite Properties today!