Secrets of Successful Investment Clubs

Following these strategies can help yours enjoy longevity

placed a great deal of faith in the eight-member committee that includes a certified public accountant and other corporate executives. Members have given the advisory board full autonomy to make investment decisions on their behalf. So far, they’ve grown a portfolio that has assets valued at $850,000, even after cashing out the shares of more than 20 members over the years. “We have mutually agreed to what we want to accomplish, and the board strictly adheres to our mission statement,” says Childress. In fact, OMGEN is spreading its message of community development and economic growth by providing free financial seminars to community residents and scholarships to students.

OMGEN’s Advice:
Advice forInvestment Club Success
Leverage group knowledge. All members may not be financially able or have the business savvy to complete a deal, but leveraging the best everyone can offer in experience, passion and commitment will propel your group to new heights.
Challenge the “status quo.” Incorporate a regular review of group objectives, processes and goals into the club culture.
Be inclusive and entrepreneurial. Welcome the views of all members, strive for transparency and drive accountability and ownership at every level.

GRIG’s Advice:
Agree on financial strategy. Mutually agreed upon objectives that are strictly adhered to make it easier to select opportunities that are right for the group.
Establish an L.L.C. Creating a Limited Liability Corp. makes entering into business ventures and real estate deals easier to manage and maintain. Once an L.L.C. is established, apply for credit to help facilitate business deals.
Select members carefully. Create an application process that thoroughly assesses the financial commitment of members. Individual members with common goals can help foster a sense of trust and respect for one another.

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