How To Structure A Business Model For Online Platform For Property?

How to structure a Real Estate Platform that offers Fractional Ownership in Commercial Properties? My model is slightly different from current startups. Current Model: Platform will identify commercial properties generating good rental income, ne... Read More

How to structure a Real Estate Platform that offers Fractional Ownership in Commercial Properties? My model is slightly different from current startups. Current Model: Platform will identify commercial properties generating good rental income, negotiate the price, do legal check & lock the deal. The platform then pools a group of users. An SPV is incorporated & the property is registered on its name & every investor gets a proportionate share in the SPV. The maintenance of this Property is then transferred to the Platform. The platform doesn't own any share in SPV but charges a fee on sale price. MY Model: I don't want fee in cash, but want to retain a share in the property (High-value Transaction). If my fee is 2%, i will sell the property for a 2% higher price. So selling 98% share would pool 100% funds. How to structure the transaction so that my company is not classified as CIS (collective investment scheme) or AIF (Alternate Investment Fund)?
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Answer (1)

Team Legistify

Team Legistify

  • Sector-1, Noida

I suggest you consult a startup lawyer in India to get the required help for structuring your business and getting all the licenses and permits.

Answered on 20 Jan 2020


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