Welcome to the investment groups/chama money growth strategies series! You are on the first part of the series. You can navigate through the next part of the series at the bottom of this article. In developing economies, its common to find people come together for the purpose of pooling their resources together for a common goal. When people first form an investment group or a Chama, the ambitions are high. In addition, the members’ commitment to the group is also high. However, keeping the fire burning requires a constant motivation to commitment. This is so since these members have private commitments and ambitions which might drown the commitment to the group. This is why most investment groups eventually die without accomplishing the purpose for which they were formed as the members disintegrate. The highly needed commitment motivation for chama growth is essentially pegged on the projects that the group is involved in. There are various types of chamas such as welfare groups, merry go round & investment groups etc. Our focus is on investment groups. These are the chamas formed with investment projects in mind and the most critical for members’ financial growth. In this series, we explore various projects that an investment group can implement to keep the members’ commitment afloat and achieve the group’s wealth growth goals through alternative real estate investments. Jump to the first strategy in this series by clicking the button below Subscribe to our mailing list This is a premium free mailing list where we share real estate wealth- growth opportunities. Including implementation strategies, rewards and challenges involved in each.
Real estate investment is considered to be one of the most attractive investments. It can be an excellent way to add diversification to your portfolio due to its stability and low risk. On the flipside, real estate is usually associated with huge capital outlay.However, real estate crowdfinancing is an attractive alternative to a real estate investment trust (REIT) or direct ownership. With real estate crowd financing, you essentially have two options for investing: debt or equity investmentWhen you invest in debt, you’re investing in a mortgage note secured by a rental property. As the loan is paid back, you receive a share of the interest. This type of investment is considered lower risk than equity, but the returns will depend on the interest rate being charged on the mortgage. On the other hand, it’s preferable to direct ownership because you’re not responsible for managing the property.Investing in equity means you receive an ownership stake in the property. In this scenario, returns are realized as a percentage of the rental income the property generates. If the property is sold, you would also receive a portion of any gains from the sale.Real estate crowdfinancing offers to non-accredited investors an attractive low entry point in terms of capital investment as compared to the amounts required to gain access to private real estate deals.