real estate syndications
- Thread starter RexS9999
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You need to be much more specific. Are you talking about REITs, REIGs, passive real estate partnerships, private real estate funds, on-line real estate crowdfunding, or something else? These are all examples (there are also others) of pooling money to buy real estate.
It sounds as if it might depend on your home country jurisdiction and the investment jurisdiction. Then again, I am subject to FATCA (not CRS) so I could be way off base.
That is a REIT, which is just one of many ways to pool funds to buy real estate (at least in the U.S.).
For now 😕.
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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.
REITS trade on public exchanges (stock markets). I am wondering about a real estate investment managed by a large company or global bank that is not listed on any exchange, therefore not subject to reporting. Yes, one could by a rental property somewhere. But I do not need that troubld that comes with that. I can't even repair a leaky sink. I looked at real estate synticates. These seems to carry a lot of risk but I have little knowledge on this subject.
Syndicates are dressed up in many forms. Ultimately what you want to do is set up an SPV and place the funds into it via a layers client account. Then you can purchase a property and the give it to a company that does guaranteed rent.
They will take care of the unit and can guarantee the rent because they have a AAA client ie the government.
To give an example the UK government are leasing properties for 10 years to house Ukrainians. Whether the property is rented or not they will through their service provider pay you rent, fix any issues and keep up with the regulatory aspects.
After the 10 years they may choose to renew or if not refurb the property and return it back to you in the condition it was in when they took it. This could also mean that a surveyor comes round and will evaluate the refurbishment and they will send you a cheque.
They will take care of the unit and can guarantee the rent because they have a AAA client ie the government.
To give an example the UK government are leasing properties for 10 years to house Ukrainians. Whether the property is rented or not they will through their service provider pay you rent, fix any issues and keep up with the regulatory aspects.
After the 10 years they may choose to renew or if not refurb the property and return it back to you in the condition it was in when they took it. This could also mean that a surveyor comes round and will evaluate the refurbishment and they will send you a cheque.
There are also private variations. For example, there are similar setups in Latin America and SEA, where a management company buys a building and then sells condo units or apartments to investors. The management company maintains a list of multinational companies who require housing for their executives who will work in the local economy for a year or two, but who will eventually travel back home.
The multinational company pays the management company rent (for their executive) on behalf of the owner. Under this arrangement, the rent stability and the safety of the property is pretty much guaranteed. Moreover, by renting to foreigners who will eventually leave the country you also avoid tenant holdover and eviction problems. This arrangement eliminates most of the typical problems associated with absentee owners renting out a property in a foreign country.
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