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Want to know about fractional investments in properties


22-Dec-2023 (In Tax Law)

We are starting up a marketplace that will help small ticket investors connect with high-appreciation under-construction properties. They will be able to invest in small amounts and own a fraction of the property. We are trying to understand what is the best possible way to structure this kind of a deal with investors in order to reduce the time, physical involvement of investors (signatures etc.), reduce taxes and ensure investor protection. We have heard about Syndicates and Trusts and want to know if they are viable options. But we are open to looking at any other kind of structure

Answers (1)

Answer #1
584 votes
As far as I understand your description of the concept, there are some options such as MOU's, Term based Partnerships and Joint Ownership of and in Properties, but, the real problem which might arise is at the time of exiting the investment transaction, which, if different then it would complicate the deal and would further create problems for other staying investors of the same property. If some more details be provided about the whole concept, there can be a scope for any particular arrangement to work.

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