Advertiser Disclosure

advertising disclaimer
Skip to main content
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
Get our 43-Page Guide to Real Estate Investing Today!

Real estate has long been the go-to investment for those looking to build long-term wealth for generations. Let us help you navigate this asset class by signing up for our comprehensive real estate investing guide.

*By submitting your email you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.

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.