french property inflation

Let's say you have decided to mount groups of investors to purchase investment real estate. If you follow my road map for a successful syndication in my previous article (Part 1 and Part 2), then you know that the first step is Research on the fourth and select a property to buy. You will first want to focus on the types of commercial real estate for sale for your syndications.

So, what is the best type of investment property? In the process of collection of groups, you come to realize that not all types of real estate "same" from an investment perspective. Here is a breakdown of the property and its attractiveness as syndication investments:

COUNTRY: Includes remote control (currently unusable) -, agricultural and "pre-builder" country.

1. "Remote" country for a long time with the expectation that growth will increase the value. Unfortunately it is very risky and provides no current income for investors. The biggest drawbacks are an investor must be a regular contributor of capital to cover expenses for taxes, insurance, loans and possibly payments.

2.Agricultural land is used to plant for sale. It is essentially unimproved land in a company and its value is derived from the ongoing operations of the company.

3. "Pre-Builder" land is subdivided and sold to different owners, the final product, whether homes or commercial. The country is actually stock and its value will be in the subdivision.

CONSTRUCTION: Including the new trade and sub-division projects, on the front stage builder.

EXISTING: Residential and commercial property operating income items.

If we are removed from the list above, we will soon see that as a syndicator, we want to focus our efforts on only one of the major categories. This would yield Rentals objects. There are several reasons for this, some obvious and others, you can set a bunch of problems if you are not some serious time with your lawyer. They want the benefits for you and your co-investors will be removed from your property investment efforts, as well. This will help not only in your efforts, but in the promotion of your properties to potential investors. Here they are:

- Agricultural land, particularly land-builder, new construction projects and manage their value from the efforts of others on the investment in the property itself, this leads to a "corporate securities risk" for the money of investors and the syndicator under the jurisdiction of the federal and securities laws. Ultimately, this means that you could seriously be liable to your investors, if things are not as planned. Not in this type of investment, without the considerable experience and excellent legal assistance.

- Remote country will likely require "capital" to existing investors to pay real estate taxes, insurance, and related, as you wait for the value to increase. There is nothing that an investor hates more than a phone call from his managing partner to ask for more money. Even if it is open to the front and expected, it is not good mentally.

With existing properties:

1. Investors' capital is, without a contribution from the expectation of future contributions, in most cases.

2. There is minimal involvement of the capital contributions relating to the availability of investment funds.

3. The owners can expect that the expenditure-revenue may be at regular intervals.

4. The owners can expect an increase in equity through the amortization of a loan to assist in the acquisition.

5. There is also a realistic expectation of an increase in the value of the assets of monetary inflation and appreciation.

6. There will also be tax advantages from depreciation of improvements (not the country) and use an Exchange 1031 reinvestment strategy for the sale of real estate.

Just as we on this issue, we focus on the existing, operating, revenues from leasing and commercial real estate. This reduces the syndicator of exposure to regulatory requirements and provides investors with regular checks, so that they are very happy to make your calls!

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