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investing talk

How REIGs Work and If They're Right For You

An REIG can be a wonderful way to get started investing in real estate -- as long as you choose the right group.

[Updated: Apr 16, 2021 ] Dec 22, 2020 by Liz Brumer
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Pros Cons
  • Not as much cash needed to hold physical real estate; ability to invest in larger real estate deals.
  • No personal experience or knowledge necessary in most cases -- you can benefit from the experience of others in the group.
  • Minimal time input because tasks are shared between members or the investment is managed for you.
  • Investing in physical assets in a diverse range of property types.
  • Opportunity to learn the investment strategy to gain personal knowledge and experience.
  • Success depends on the group's knowledge; it's not guaranteed.
  • You are investing with people, not a business, so you may find untrustworthy groups.
  • May charge a membership fee, which can reduce your return.
  • Could be difficult to pull your money out, depending on your agreement terms.
  • Disagreements and confrontations between investment goals, management styles, responsibilities, or outcomes are possible.

Data source: Chart by author.