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)
Lawyers answer this question
No.74, 1st Floor, 6th Cross, Malleswaram, Bengaluru, Bangalore
For More Details Contact On
You may consult in person with local legal expert to get accurate legal advise after seeing all the relevant documents.
43 user found this answer helpful
Disclaimer : This answer is based on information given by you hence, It is just opinion of Lawyer. For specific answer you have to give details and facts and choose the Lawyer of your choice.
Lawyers: To answer this question, please Sign In
to your account or wait for admin approval.