International investors willing to invest in real estate in the US can: (1) acquire real estate (traditional and profitable investment), and/or (2) invest in real estate investment funds, in which case they would not be purchasing a property, but rather economic interests or participation rights in the US real estate industry.
Investments in real estate funds are not only a viable alternative for international investors, they are in fact a sound and appealing opportunity to participate in the growth of the real estate industry in the US.
Firstly, in this case, international investors do not purchase a property through the traditional purchase and sale agreement, but rather a participation in the selected investment fund.
From a legal standpoint, these investment funds are in and of themselves companies that are developing multiple large real estate projects. A single investor, independently, could not realize real estate projects or developments of this size, diversity, complexity, and cost. However, thanks to the democratization attained through these new investment vehicles, by purchasing a certain participation in these funds, the investor actually partakes -with the promoters and other investors- in the development of these real estate mega-projects, thus benefitting from very appealing returns.
The value of participation rights in these real estate funds varies significantly between funds. However, for example, the PARTICIPANT fund allows investors to purchase participation rights for US $50,000.
Each real estate investment fund defines its terms and conditions, which investors must carefully review prior to making their investment decision. DGS REAL ESTATE provides information on such funds, and helps international investors to analyze and understand them. Additionally, pursuant to applicable law, DGS REAL ESTATE works closely with -and makes available to its clients- a duly licensed investment firm in the US to provide financial and investment advise, thus ensuring that any and all potential investments in real estate funds are carried out in the most transparent, reliable and secure way.
For further information on the real estate investment funds that DGS REAL ESTATE is introducing to international investors, please contact us.