What Is Private Equity Real Estate?

Real estate investment funds are collective investment systems that engage in the acquisition, development, management, operation and marketing of real estate to obtain income.

Real estate private equity funds

Right!

It can be seen as engaging investors with their own funds and

Since 2010, the national and local governments have continuously introduced regulatory policies in the real estate industry, including restrictions on purchases, prices, loans and other regulatory policies. By mid-2011, the regulation had begun to show effects. Real estate projects in first-tier cities such as Beijing, Shanghai and Guangzhou (especially residential projects) have generally experienced both volume and price declines, and low-sale real estate sales in second- and third-tier cities have gradually increased. The industry generally believes that as these regulatory policies continue, coupled with real estate development

From the basic organizational structure, real estate private equity funds and traditional

Real estate private equity funds are mostly targeted investments in a certain project.

There are many irregularities in the real estate private equity funds currently operating in the market, which has led many investors to wait and see for such funds. The main problems are:

One is

At present, the real estate market continues to be under the control of leverage, and the outbreak of real estate private equity funds in China can be expected. However, as a very professional new thing, the rapid expansion of real estate private equity funds also faces some difficulties that need to be resolved.

First of all, under the current reports of large-scale survival crisis of real estate companies, coupled with the continuous expansion of the real estate market funding gap, investors' guarantees and income requirements for real estate private equity fund investment have also risen, and directly caused real estate companies.

For the purpose of obtaining investment income

according to

It has the characteristics of strong liquidity, which is convenient for investors to control risks, and this type of funds has the advantage of being more extensive for investors. However, the United States has restrictions on the investment direction of open-ended real estate investment funds.Generally, such funds cannot directly invest in real estate assets, but must participate in the real estate industry by investing in real estate-related financial products such as real estate investment trust stocks and real estate-related bonds. Investment, and requires its investment proportion in real estate to reach more than 90% of the size of the fund.

It generally consists of a general partner (fund management company) with unlimited liability and one or more partners (fund investor) with limited liability.It mainly raises funds in a private placement and uses the raised funds for real estate investment. In this form of fund organization, the general partner is responsible for the management of the fund and bears unlimited liability for the fund's debts; while the limited partner owns the ownership without the right to operate and does not assume unlimited liability. The investment direction of a limited partnership real estate investment fund is strictly limited to real estate-related securities (including stocks of listed real estate companies, real estate backed bonds, housing mortgage bonds, etc.) and real estate assets. The real estate assets directly invested by real estate investment funds are generally high-end apartments, office buildings, warehouses, factories, and commercial buildings that can generate relatively stable cash flows. The general partners of a limited partnership fund bear unlimited payment obligations, so when they launch the fund, they generally stipulate that the fund will not purchase properties through debt, unless the property invested by the fund requires renovation, maintenance and other improvements to the property status When the fund's cash flow has some difficulties and other measures, appropriate financing can be carried out, but the proportion of financing generally does not exceed 25% of the value of the investment property.