How to structure a Fractional Ownership Real Estate startup
Situation : Hi, Need proper legal advice on how to structure my Real Estate Platform that offers Fractional Ownership in commercial Properties. My model is slightly different from current startups.
Current Model : Platform will identify commercial properties generating good rental income, negotiate the price, do legal check & lock the deal. Platform then pools a group of users. An SPV is incorporated & the property is registered on its name & every investor gets a proportionate share in the SPV. The maintenance of this Property is then transferred to the Platform. Platform doesnt own any share in SPV but charges a fee on sale price.
MY Model : I dont want fee in cash, but want to retain share in the property (High value Transaction). If my fee is 2%, i will sell the property for 2% higher price. So selling 98% share would pool 100% funds. How to structure the transaction so that my company is not classified as CIS (collective investment scheme) or AIF (Alternate Invstment Fund)
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