{"id":7279,"date":"2023-04-27T00:05:19","date_gmt":"2023-04-27T00:05:19","guid":{"rendered":"https:\/\/imsfund.com\/?p=7279"},"modified":"2023-04-27T00:05:19","modified_gmt":"2023-04-27T00:05:19","slug":"the-top-5-ways-you-can-invest-as-a-group","status":"publish","type":"post","link":"https:\/\/imsfund.com\/index.php\/2023\/04\/27\/the-top-5-ways-you-can-invest-as-a-group\/","title":{"rendered":"The Top 5 Ways You Can Invest As A Group"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div :class=\"{ 'hidden': $store.proContent.showFullPrompt() }\">\n<section class=\"px-4 relative border border-slate-200 mobile-toc lg:hidden\" x-data=\"{open:false}\">\n<button class=\"flex items-center gap-4 my-2 border-none w-full\"><br \/>\n<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-6 w-6\" fill=\"none\" viewbox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M4 8h16M4 16h16\"\/><\/svg><\/p>\n<h2 class=\"font-semibold text-slate-800 text-base m-0 js-toc-ignore\">In this article<\/h2>\n<p><\/button><\/p>\n<\/section>\n<p><span data-preserver-spaces=\"true\">For centuries, investing as a group has been a key ingredient in building wealth. I recognized early in my journey that earning a college degree, landing a steady W-2 job, and contributing to my 401(k) would only get me so far. I was participating in a vast investment world as an individual\u2014but the real investors were \u201cplaying\u201d on teams.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">More than a decade ago, my three brothers and I came together on a trip where we shared our desire to obtain financial freedom for our families and future generations. We knew we couldn\u2019t do it alone. We also knew that combining resources was nothing new. For the wealthy, outsourcing the administrative process to pool their money may cost tens of thousands. But that is a drop in the bucket when considering the size and scope of these investments for each group.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">For my family, we struggled to get started in those early days. Like grappling over the last piece of cake as kids, we were challenged to get on the same page, navigating things like joint bank accounts, being transparent, managing a cap table, and so many other hurdles, twists, and turns.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">I took it upon myself to do something about it and change the industry. Since founding Tribevest in 2018, we\u2019ve solved countless issues to make it safe, easy, and transparent to form an investor group\u2014or what many like to call\u2014an Investor Tribe.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Let\u2019s take a look at the top five ways to invest as a group.<\/span><\/p>\n<h2>1. <span data-preserver-spaces=\"true\">Investor Tribes<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Investor Tribes are an excellent fit for anyone, from experienced investors to newer investors, looking to break into opportunities and level up their knowledge and wealth. If you\u2019re interested in teaming up with friends, family, or like-minded people to invest in anything from real estate to alternative investments, an Investor Tribe is a great option.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Suppose you\u2019re looking to partner with friends and family or a business partner to transact in multiple investment opportunities. In that case, an\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.tribevest.com\/features-and-pricing?utm_source=biggerpockets&amp;utm_campaign=biggerpockets_blog&amp;utm_term=investor_tribe\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Investor Tribe<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0may be the best investing group structure to consider.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Investor Tribes have the benefit of simplicity. They are quick to launch and inexpensive. An Investor Tribe consists of a founder, or the leader of the group, and members, who are equal participants and contributors to the group\u2019s investing efforts.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The primary consideration you want to account for when pursuing an Investor Tribe is that you can only accept capital from active partners in your LLC. Your tribe cannot accept contributions from limited partners or passive investors. If you take money from investors outside your LLC at any point, you may be subject to SEC regulations.<\/span><\/p>\n<h2>2. <span data-preserver-spaces=\"true\">Real Estate Syndications\u00a0<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Another format you can use to structure your investment group is syndication. Syndication involves investors coming together to purchase a real estate asset and is typically led by professional investors, also known as sponsors, who need to finance a specific project according to a particular timeline.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">A long-time hurdle for real estate syndications is the minimums, which could be $50,000 or $100,000 per investment. Unless you have millions of dollars to invest each year, it can be difficult to diversify your portfolio into different asset types and markets.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Large minimums and a lack of diversification were additional issues we solved at Tribevest. If you don\u2019t have millions of dollars to become a sponsor, you can always use Investor Tribes or SPVs to invest into a syndication.\u00a0<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">3. Special Purpose Vehicles (SPVs)<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Special purpose vehicles are a fit for professional investors. If you are a professional making a living through finding, assessing, and participating in private deals for clients and passive investors, an SPV may be a good fit.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">SPVs generally consist of general partners and limited partners. General partners are parties who take a role in helping to manage the SPV. These partners are liable for the SPV\u2019s debts\u2014meaning they\u2019re on the hook. On the other hand, limited partners are silent or passive investors in the deals pursued by the SPV.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">SPVs aren\u2019t without their downsides, however. First, you\u2019ll want to consider the cost: setting up an SPV can be expensive. A standard setup fee for an SPV is\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/help.venture.angel.co\/hc\/en-us\/articles\/360047679792-Who-pays-the-deal-setup-costs-\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">up to 7% over six years<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Another factor to consider when looking into an SPV is that you will be subject to the rules and regulations of the SEC. If you don\u2019t have the knowledge, expertise, or time to navigate all the appropriate SEC requirements in pursuing your investment, an SPV might not be the right fit for your investment group.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">We recently launched\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.tribevest.com\/pro-tribe?utm_source=biggerpockets&amp;utm_campaign=biggerpockets_blog&amp;utm_term=pro_investor_tribe\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Pro Investor Tribes<\/span><\/a><span data-preserver-spaces=\"true\">, which allows an entity raising funds for a single deal to easily create a multi-member LLC with active investors. This is a great tool for savvy investors who are looking to expand their investment business and need a streamlined process. Through the Pro Investor Tribe process, multiple investors can contribute capital towards a specific deal under the umbrella of an active multi-member LLC. Similar to an SPV, but with active members.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The tribe will be protected by a ratified operating agreement and offer the ability to pool capital safely and quickly. Once all the funds are pooled from all the members of the LLC, the tribe can invest in a specific deal as one business entity. For example, if an Open Tribe of 10 people contributes $10,000 each, their LLC can reach a $100,000 minimum for a single investment.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Since the number of members in a Pro Tribe is capped up to 15, and the members are active owners with a ratified operating agreement, voting rights, and quarterly meetings, a Pro Tribe is not required to register with the SEC.<\/span><\/p>\n<h2>4. <span data-preserver-spaces=\"true\">Crowdfunding<\/span><\/h2>\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/real-estate-crowdfunding\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Crowdfunding<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0suits startup founders looking to fund their growing businesses with friends, family, and employees. If this sounds like you, crowdfunding may be an option for your investing journey.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Technically speaking, crowdfunding isn\u2019t the same thing as an investor group. However, it\u2019s still a good fit for some specific cases.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">A benefit of crowdfunding is it can be an incredible way to raise capital without pursuing traditional financing or in addition to conventional financing. If you\u2019re crowdfunding for a startup or other business venture, it\u2019s also a great way to build a solid base of brand advocates in the early stages of your business. You may also get media exposure if your crowdfunding campaign is a smash hit. This exposure may be through traditional media like a mention on a news station, trade publication, or social media if a popular user shares your crowdfund on their feed.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Crowdfunding can be powerful, but its use cases are rather targeted. Similar to an SPV, a crowdfunded venture is subject to SEC regulation. This can make things complicated or stressful to manage.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Crowdfunding can also be expensive, where platforms require you to\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/doublethedonation.com\/tips\/comparing-crowdfunding-websites\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">pay various fees<\/span><\/a><span data-preserver-spaces=\"true\">. For example, if you\u2019re using Kickstarter, you will pay 5% of your raised capital as a platform fee, then an additional 3-5% fee to process all contribution payments.\u00a0<\/span><\/p>\n<h2>5. <span data-preserver-spaces=\"true\">Fund<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">An investment fund might be a good choice if you\u2019re a professional investor looking for a long-term opportunity. A fund allows investors to pool capital to purchase securities together. An investment fund is a complex investment group structure best reserved for seasoned professionals. The advantage of a fund is that each group member controls their shares, maintaining autonomy while investing as a group.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Generally speaking, investment funds are formed by professional investors looking to create an ongoing investment business that lets them access more deals and leverage the entire group\u2019s experience.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Some of the benefits of funds include diversifying to a greater extent, pursuing a wider variety of investments, and formally registering your investment group with the SEC. You can also seek accredited passive investors to further boost your investment fund\u2019s capital. A fund tends to be a long-term commitment, with an expected buy-in of ten years or more.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Another downside of investment funds is that they are often blind pools. This means passive investors don\u2019t always know what assets a portfolio includes when they sign on to contribute funds.\u00a0<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Conclusion<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Which investing group structure is the best one? That depends on your goals for your group, your investment, and yourself. Each structure has its benefits. If you are considering an Investor Tribe or Pro Investor Tribe, please reach out to me or our team at Tribevest.<\/span><\/p>\n<div class=\"is-layout-flow wp-block-group border border-gray-200 p-6 rounded-md has-slate-50-background-color has-background\">\n<div class=\"wp-block-group__inner-container\">\n<div class=\"wp-block-group__inner-container\">\n<h3 class=\"has-text-align-left mt-0\"><strong>This article is presented by Tribevest<\/strong><\/h3>\n<figure class=\"wp-block-image size-full\"><picture decoding=\"async\" loading=\"lazy\" class=\"wp-image-151764 sp-no-webp\" title=\"The Top 5 Ways You Can Invest As A Group 2\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Tribevest-FullColor.webp 738w,https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Tribevest-FullColor-300x78.webp 300w\" sizes=\"(max-width: 738px) 100vw, 738px\" type=\"image\/webp\"><source srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Tribevest-FullColor.png 738w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Tribevest-FullColor-300x78.png 300w\" sizes=\"(max-width: 738px) 100vw, 738px\" type=\"image\/png\"><img src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Tribevest-FullColor.png\" decoding=\"async\" loading=\"lazy\" class=\"wp-image-151764 sp-no-webp\" title=\"The Top 5 Ways You Can Invest As A Group 2\" alt=\"Tribevest FullColor\" height=\"192\" width=\"738\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Tribevest-FullColor.png 738w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/04\/Tribevest-FullColor-300x78.png 300w\" sizes=\"auto, (max-width: 738px) 100vw, 738px\"\/><\/source><\/source><\/picture><\/figure>\n<p>Tribevest has made doing business with partners easy, safe, and transparent. Investors use Tribevest to form active business partnerships through Tribes and streamline their back-office operations.<\/p>\n<\/div>\n<\/div>\n<p class=\"italic\"><b>Note By BiggerPockets:<\/b> These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.<\/p>\n<\/div>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.biggerpockets.com\/blog\/ways-to-invest-as-a-group\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this article For centuries, investing as a group has been a key ingredient in building wealth. I recognized early in my journey that earning a college degree, landing a steady W-2 job, and contributing to my 401(k) would only get me so far. I was participating in a vast investment world as an individual\u2014but [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-7279","post","type-post","status-publish","format-standard","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/7279","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/comments?post=7279"}],"version-history":[{"count":1,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/7279\/revisions"}],"predecessor-version":[{"id":7280,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/7279\/revisions\/7280"}],"wp:attachment":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media?parent=7279"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/categories?post=7279"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/tags?post=7279"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}