Dean Foust at Business Week Online has some thoughts on Real estate investment clubs. He takes the “bearish” view that it’s too late to start one; I take the equally bearish view that it’s a few months too early. Assuming that your real estate investment club is going to work on a “dollar cost averaging” approach, it really doesn’t matter whether you buy now or wait for interest rates to rise and the market to cool a bit. On the other hand, you may want to play market timer and do just that. If that’s the case, now would be a good time for research and planning.
In the southwest Missouri market, average sale prices of residential properties fall 8-12% during the November to February season and it’s looking a lot like the market will be going through a more general downturn around the same time. So, whether you’re investing as a club or an individual, your best bet is to have all your ducks in a row come December and go bargain hunting.
Whether you are ready to start investing today or you want to wait for the market to cool a bit, the Foust points to the National Real Estate Investors Association as a source of help. And, of course, you need a good local agent.
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