trust deed is constructed in the standard form and if a company is
used, requires an NCSC approved prospectus before the units are
offered to the public. The subject property and related assets are
held in trust. The diagram below shows a typical trust structure.
are often used to assemble equity funds for real estate investment.
Real estate investment trusts sell shares to small investors and use
the proceeds to acquire or develop real estate.
A TRUST WORKS
- allows parties
to invest in property that would normally be out of their reach
- by pooling
resources two or more parties can purchase more expensive real estate
- when used to
purchase existing investment properties, will achieve earnings through
future rents and capital gains.
- potential risks
involved in investing a large amount in one property
- minor interest
holders may be outvoted by larger interests.