How Do I Structure an Investment Group?

Investment Groups usually have an excellent success rate, due to their ability to combine resources. The only thing to watch is that you are all on the same page, so to speak. As they say, a chain is only as strong as its weakest link. In other words, all members need to have high motivation and belief system in creating wealth. If any members are a bit stuck, you may need to bring the group’s prosperity level up through motivation techniques applied to creating wealth.

I often refer to an “income ceiling”. That is, a subconscious barrier that most people have that governs how much money they can earn. This has nothing to do with their abilities or talents or expertise – but more to do with parental, social or environmental conditioning. A great book to read is the old classic by Napoleon Hill: “Think and Grow Rich”. It worked then and it works now.

Now, as for the Investment Group structure:

Set it up as either a Partnership or Unit Trust. A Unit Trust has the advantage that members can buy and sell specific ‘units’ according to how much they have to invest, and profits are distributed proportionally.

Either way, you will need to get a legal document drawn up that fully addresses all issues of the investment structure. Best to get this done by a lawyer who specialises in this field.

Also, to avoid arguments or differences that may destroy your group’s success, give a lot of thought to and study the complexities of ‘group dynamics’. If you are the leader or initiator of an Investment Group, then this is a must.

Whenever you feel your group’s collective expertise regarding investing is too low and you start floundering, never hesitate to get good professional advice.

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