Investment clubs have been around for decades, but they are gaining popularity as a way to prepare for retirement. The concept is simple. A small number of people joins together to form a group with the purpose of using pooled money to buy stocks, bonds, or even real estate. The rise in property values has made starting a real estate investment club a more suitable choice for many hoping to earn money by pooling resources.

The members share the assets and liabilities of the investment club, which makes learning how to start an investment club a task to be taken seriously. The members have the chance to gain significant financial returns from these investments. Starting an investment group means addressing some potentially serious issues, however. These considerations are key to any investment start-up.

Set Investment Club Rules Regarding Number of Members

Most groups start with 10 to 20 members. Some consider couples a single member with one vote while others require each individual to be a member. Expect that people will come and go from the group and write into your by-laws the maximum number of members you will permit and the minimum before dissolving the club.