The Difference Between REITs and Real Estate Funds & Syndications
Real estate investment trusts (REITs) and real estate funds or syndications are two investment options in the real estate market but they function quite differently. REITs accumulate properties and payout 90% of their income from rents as dividends to their investors. They can either be private or public; public REITs are traded on the stock exchange and are thus highly liquid. Private REITs, while less liquid, have mechanisms to make it easier for investors to sell their positions at regular intervals.
Real estate funds, on the other hand, gather funds from multiple investors for buying, managing, developing, and selling properties. They offer a wider range of options but are generally less liquid and require a larger minimum investment.
Both REITs and real estate funds are subject to different tax implications. REITs dividends are subject to income tax while real estate funds and syndications are more likely to be taxed at the capital gains rate.
It's important for any investor or fund manager to consider their investment theory and goals when deciding between a REIT or a real estate fund. Their success is tied not to the type of investment vehicle they choose, but the types of deals they do and the investors they work with.
Read more about Reg D Rule 506b - Rule 506b of Reg D: Non-Accredited Investors & No Solicitation: https://www.moschettilaw.com/rule-506b-of-reg-d/
Read more about Reg D Rule 506c - Rule 506c of Reg D – Solicitation & No Non-Accredited Investors: https://www.moschettilaw.com/rule-506c-of-reg-d/
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1.) What is Reg D? The King of Securities Exceptions - https://www.moschettilaw.com/reg-d/
2.) What is Syndication? Raising Outside Capital For Investment - https://www.moschettilaw.com/syndications-and-funds/
3.) Private Placement Memorandums for Syndications and Funds - https://www.moschettilaw.com/private-placement-memorandum-attorney/
4.) Real Estate Syndication: Raising Investment Capital For Properties - https://www.moschettilaw.com/real-estate-syndication/
Moschetti Syndication Law Group is a boutique syndication law firm, serving small and growth-bound syndicators, as well as private equity firms. Our attorney, Tilden Moschetti, is determined to keep the firm’s ‘boutique’ size so we can tailor the services to each client’s unique needs without turning the firm into a faceless factory churning out private placement memorandums or passing unnecessary overhead expenses onto our clients. (As our client, you’ll only pay a fixed fee, so no surprises.) As for the client experience, we give real-time answers with Tilden Moschetti without making you book an official appointment or get passed along to associates or paralegals. We’ll work with your ambitions and overall vision to help you close the current deal and fill in that ‘missing’ piece – whatever you need – to keep adding more syndications to your portfolio. We keep syndicators syndicating (TM).
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------Disclaimer------
Also, please note, this video and any content from Moschetti Syndication Law Group, Tilden, or anyone affiliated with either or both, does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information from these online sources may not constitute the most up-to-date legal or other information.
No viewer, user, or browser of content from us should act or refrain from acting on the basis of information on this site without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.
Real estate funds, on the other hand, gather funds from multiple investors for buying, managing, developing, and selling properties. They offer a wider range of options but are generally less liquid and require a larger minimum investment.
Both REITs and real estate funds are subject to different tax implications. REITs dividends are subject to income tax while real estate funds and syndications are more likely to be taxed at the capital gains rate.
It's important for any investor or fund manager to consider their investment theory and goals when deciding between a REIT or a real estate fund. Their success is tied not to the type of investment vehicle they choose, but the types of deals they do and the investors they work with.
Read more about Reg D Rule 506b - Rule 506b of Reg D: Non-Accredited Investors & No Solicitation: https://www.moschettilaw.com/rule-506b-of-reg-d/
Read more about Reg D Rule 506c - Rule 506c of Reg D – Solicitation & No Non-Accredited Investors: https://www.moschettilaw.com/rule-506c-of-reg-d/
👇 SUBSCRIBE TO THE MOSCHETTI SYNDICATION LAW GROUP YOUTUBE CHANNEL NOW 👇
https://www.youtube.com/channel/UCVh1CNQULC45Bh6j4WV2sjA?sub_confirmation=1
Check out these Top Trending Blog Articles –
1.) What is Reg D? The King of Securities Exceptions - https://www.moschettilaw.com/reg-d/
2.) What is Syndication? Raising Outside Capital For Investment - https://www.moschettilaw.com/syndications-and-funds/
3.) Private Placement Memorandums for Syndications and Funds - https://www.moschettilaw.com/private-placement-memorandum-attorney/
4.) Real Estate Syndication: Raising Investment Capital For Properties - https://www.moschettilaw.com/real-estate-syndication/
Moschetti Syndication Law Group is a boutique syndication law firm, serving small and growth-bound syndicators, as well as private equity firms. Our attorney, Tilden Moschetti, is determined to keep the firm’s ‘boutique’ size so we can tailor the services to each client’s unique needs without turning the firm into a faceless factory churning out private placement memorandums or passing unnecessary overhead expenses onto our clients. (As our client, you’ll only pay a fixed fee, so no surprises.) As for the client experience, we give real-time answers with Tilden Moschetti without making you book an official appointment or get passed along to associates or paralegals. We’ll work with your ambitions and overall vision to help you close the current deal and fill in that ‘missing’ piece – whatever you need – to keep adding more syndications to your portfolio. We keep syndicators syndicating (TM).
★☆★ CONNECT WITH THE MOSCHETTI SYNDICATION LAW GROUP ★☆★
YouTube: https://www.youtube.com/channel/UCVh1CNQULC45Bh6j4WV2sjA?sub_confirmation=1
Facebook: https://www.facebook.com/syndication.attorneys/
LinkedIn: https://www.linkedin.com/company/moschettilaw
Messenger: https://m.me/tildenm
Web: https://www.moschettilaw.com
#Syndication #PrivatePlacementMemorandum #PPM
------Disclaimer------
Also, please note, this video and any content from Moschetti Syndication Law Group, Tilden, or anyone affiliated with either or both, does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information from these online sources may not constitute the most up-to-date legal or other information.
No viewer, user, or browser of content from us should act or refrain from acting on the basis of information on this site without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.