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.
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.
By definition (vii) any real estate investment trust as defined in section 856 of the U.S. Internal Revenue Code
subjected to CRS
I attach the file
subjected to CRS
I attach the file
That is a REIT, which is just one of many ways to pool funds to buy real estate (at least in the U.S.).
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 up︀ with the regulatory aspects.
After the 10 years they may choose to renew or if︁ not refurb the property and return it back to you in the condition it was︂ in when they took it. This could also mean that a surveyor comes round and︃ 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 up︀ with the regulatory aspects.
After the 10 years they may choose to renew or if︁ not refurb the property and return it back to you in the condition it was︂ in when they took it. This could also mean that a surveyor comes round and︃ 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. The︀ management company maintains a list of multinational companies who require housing for their executives who︁ will work in the local economy for a year or two, but who will eventually︂ travel back home.
The multinational company pays the management company rent (for their executive) on︃ behalf of the owner. Under this arrangement, the rent stability and the safety of the︄ property is pretty much guaranteed. Moreover, by renting to foreigners who will eventually leave the︅ country you also avoid tenant holdover and eviction problems. This arrangement eliminates most of the︆ typical problems associated with absentee owners renting out a property in a foreign country.
The multinational company pays the management company rent (for their executive) on︃ behalf of the owner. Under this arrangement, the rent stability and the safety of the︄ property is pretty much guaranteed. Moreover, by renting to foreigners who will eventually leave the︅ country you also avoid tenant holdover and eviction problems. This arrangement eliminates most of the︆ typical problems associated with absentee owners renting out a property in a foreign country.
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