Real Estate Investment Group

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DEFINITION of 'Real Estate Investment Group'

An organization that builds or buys a group of properties and then sells them to investors as rental properties. In exchange for finding tenants, handling maintenance and other responsibilities, the organization receives a portion of the investors' monthly rent proceeds.

INVESTOPEDIA EXPLAINS 'Real Estate Investment Group'

These groups provide a service for rental properties that is similar to mutual funds in that investors can reap some of the benefits of owning rental properties without having to manage them. Most real estate investment groups include provision that require that investors pool a portion of their rent to cover mortgage payments in the event of vacancies.

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