Investment funds - what is it and why is it? Hello friends, after a short break I am back to write here sensitive information...
Investment Funds - What Is It And Why Is It?
Hi there friends, after a short break, return important information here to every investor. Max asked me to refer to the world of investment funds and I happily do so.
First of all, what is an investment fund? An investment fund is a form of uniting several investors under one umbrella. Investment funds are usually * corporate * investment funds, meaning that they are an association of investors in a legal corporation (company, partnership, etc.), but there are also unincorporated investment funds, such as various purchase groups, in which several buyers are incorporated together as a "fund" to purchase an asset. a certain.
What are the benefits of an investment fund? The biggest advantage of an investment fund is that the fund works in one piece on a deal or transactions extensively and while representing the interests of many people. This gives the fund tremendous bargaining power, compared to any single player, in any deal. Another important advantage is that the bargaining is done for * all * participants in the fund and there is no situation of conflict of interest between one investor in the fund and another investor. Another advantage is the fact that the fund allows each participant access to a wider range of projects, which otherwise would not necessarily have been possible to reach, due to high amounts, etc.
There are very many types of investment funds, and each has a different character, a different role and a different meaning from an economic, legal, taxing point of view, etc. Two relatively well-known types of investment funds, which I will talk about today, are project funds and private equity funds.
Project funds that enter the world of project finance are funds that are incorporated per a particular project. They are usually incorporated in SPV - meaning Special Purpose Vehicle which is a dedicated legal corporation for the project. What interests the fund is the specific project that is pre-marked and agreed upon at the time of the conclusion of the foundation agreements. The money is raised for the benefit of this project, and the investment is made in that project according to the founders agreement.
Private equity funds are funds that are incorporated for the purpose of realizing an idea, goal, a particular business strategy and not a specific project. Usually these funds invest in predefined areas, where the founders' agreements state what the fund's area of activity is and beyond that no information is given about a particular project (sometimes they are called open check bodies - Blank Check or SPAV). The money is collected from the investors in advance, and is managed by one body in accordance with the strategy set out in the founders' agreement.
I will still write a lot about investment funds and the financing world here, but for now feel free to ask questions if there is
Since the most interesting things here, in Croatia, are on a larger scale than what is suitable for the average investor, I would love to work with larger investors or a group that has already been incorporated. I understand that in a country without a costly prospectus it is a maximum of 35 people (if I understand correctly a maximum is offered to 35 people in addition as a limit). Funding options significantly improve with project size. So in this country is SPV too? Is it essentially similar and allows for investment outside of Israel to the same extent?
Ben Rozenberg
Hi, what is better when I am given the choice to invest in the project as a fund joiner or as an investor registered in the tabu in the same project?
Ran summed it up nicely. In terms of assurance that this is an investment in a project company, the company owns the acquired asset and the investor has a share in the company that holds the asset according to his investment ratio. And no mediocre small partner in trouble can save the project. That the investor will never have to add any more money! I am currently investing in a project of 677 multi-family housing units in Montreal Canada 97% occupancy The leading partner in the project is: The Bank of Montreal !!! Who invested 50% of the capital. The Organizing Company is one of Canada's leading private investment funds. In short, a well-corrected country is also a stable currency. Closing until next Thursday. The expected annual return is high.
Peleg, beautiful analysis, concise and clear. Peleg Davidovitz.
We (Real Estate Spain) execute funds of both types that you mentioned undoubtedly touched on the advantages of tenders in investing through a fund.
One thing I think is missing and I would add to this analysis is the issue of safety. ? ️? ️
I would love to hear your opinion on the matter. Do investors (in the different types of funds, SPVs or on SPAVs) receive any kind of security guaranteeing them that if and when something goes wrong they still have rights. Security can of course be in the property itself or in the company's shares.
What do you think about it?
Pinchas Hello, I have a lot of experience with fulfillment and especially with Into. If you are looking for a solid investment with one of the funds, I recommend you go on a debt track for a multi-family improvement project and I will explain. The developer buys a multi-family complex with an existing occupancy of over 95%. This means that almost all properties are rented and are already paying rent. The developer has discovered that it is possible to increase their rent because they are paying below the market price or that through the renovation of the property, it is possible to request a higher rent. The bank reviewed and approved the project and lent the entrepreneur most of the money. In conclusion, you give a loan to a project most of which has already been leased, the bank has examined the project and approved it, the fund that receives a lot of investment proposals, has examined the project and approved it, you are the second creditor after the bank and before the other investors. If this is not a solid investment, then what is the definition of a solid investment ???? I have a number of such investments and in all of them I get a quarterly interest (remember there is where to take, because the project is mostly rented). My contact at Into is Hanita Shoshan, her phone number is: 050-6698420. You will make an appointment and she will be able to add more information about the collateral that is in this route. She is super professional and tolerant. This is without a doubt a great way to start your journey in real estate investing. Successfully !!!!
I am new to the forum and starting to study investing in real estate abroad, wanting more solid. I would love to receive tips on investing in fulfillment investment funds, intoo etc. Thanks
How can an investor be backed up if he does not have a certain asset invested by many investors?
Excellent analysis and easy to understand
Project funds, how I test their eligibility, what to look for before investing
Definitely following your posts.