As we continue to battle the Covid-19 pandemic with its new variants, the thought of pooling money to buy cryptocurrency, stocks, real estate, precious metals, and finding business opportunities should never even be counted out. We know that several groups are looking to set the stage for creating an investment club for 2022.
Recently, Equity Movement Enterprises (EME) conducted several studies. The first is the family member group, mostly Gen-Z and Millennials and Gen-X fathers, to encourage their sons and teach them about money, credit, budgeting, and investing at a young age. One of the discussed models was an investment club as a family unit to create a family legacy.
The group that we spoke with was a real estate brokerage that has plans to launch its investment club in 2022 with an aggressive approach. Each person will put up an initial investment of $7,500 with a monthly investment of $1,000. They have a total of 25 people at their brokerage. This leaves an overall investment of $18,500 per person ($7,500 initial plus $11,000 over 11 months). With 25 active participants, they will have $462,500 by the end of the year.
What are they Planning to do With the Money, You Ask?
They plan to buy stock and cryptocurrency for the first two years. Then they will take the initial projected investment ($462,500) and leverage it to purchase real estate for Airbnb rentals. First, they will be using the United States as the playground for acquisitions. After that, the cities and locations will be evaluated case-by-case basis.
One other discovery made by EME is college grads are using investment clubs as a tool to eliminate college debt. This is a wonderful concept because every little bit helps when eliminating and reducing college loan balances. This won’t pay loans off in a year but will undoubtedly lower the principal balance, which can save you money on interest charges.