Investors who acquire real estate securities from an issuer or sponsor may have to hold their securites for a year to avoid being considered presumptive underwriters.
Read MoreFinCEN recently adopted a final rule implementing the Corporate Transparency Act. Although the rule doesn’t take effect until January 1, 2024, companies should start preparing now.
Read MoreThe Inflation Reducton Act recently passed by the Senate included a last-minute chanage retaining the current tax treatment of carried interests.
Read MoreProposed legislation would increase the hold period for long-term capital gains treatment on carried interests to five years. This change would create a conflict of interest for real estate fund managers by widening the disparity between fund managers and investors.
Read MoreNeither equity multiple nor IRR provides a complete view of an investment. However, since those metrics often are presented side-by-side, investors should understand each metric and its strengths and weaknesses.
Read MoreDespite negative press, most special purpose entities have legitimate business purposes. Read why mortgage lenders, joint venture partners, and private equity investors require that real estate investments be held in special purpose entities.
Read MoreInvestors should understand real estate risks and evaluate their own risk tolerance before investing.
Read MoreA sources and uses budget at the beginning of a transaction can help a buyer determine the amount of equity it needs at the closing table.
Read MoreReal estate has long been a target for fraud, money laundering, and other illegal activity. Before investing, real estate investors should be on the lookout for signs of suspicious activity and conduct due diligence that rules out illegal behavior.
Read MoreReal estate investors should look for these red flags and should conduct due diligence before investing.
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