1. Private real estate investment funds, referred to as real estate funds for short, generally refer to private equity funds focusing on the real estate field, which is an investment model for private equity real estate funds to conduct mergers and acquisitions or development.

2. Classification:

American real estate investment funds are divided into open-end funds and closed-end funds. Real estate investment funds in the form of mutual funds and fund organizations are basically open-end funds, while real estate investment funds in the form of limited partnerships are mostly closed-end funds. Among them, limited partnership real estate investment funds are the most common, while open-end fund models are relatively few; About 30%.

3. Features:

It has the characteristics of strong liquidity and is convenient for investors to control risks. The advantage of this kind of fund is that it is more extensive for investors.

However, the United States has some restrictions on the investment direction of open real estate investment funds. Generally, such funds cannot directly invest in real estate assets, but participate in real estate investment by investing in real estate-related financial products such as real estate investment trusts and real estate-related bonds, and their investment ratio in real estate is required to reach more than 90% of the fund scale.

4. Fund type:

Company real estate fund

Corporate real estate fund is a fund established on the basis of company law, which raises assets by issuing fund shares and invests in real estate. Its subscribers and holders are shareholders of the fund, enjoying all the benefits that shareholders should enjoy, and are also the ultimate undertakers of the fund company's losses; Its sponsors can manage the fund themselves or hire a fund management company from outside the institution to manage the investment of the fund.

Contractual real estate fund

Contractual real estate investment fund, also known as trust fund, refers to a real estate investment fund based on the trust law and established by the fund sponsors in accordance with the trust deed concluded by the parties, which publicly issues fund certificates and raises investors' funds. Its biggest feature is that the fund itself is not a company with legal personality. The three parties of a contractual real estate investment fund are the fund beneficiary, the fund manager and the fund custodian.

Limited partnership real estate fund

Limited partnership divides partners into two categories, namely limited partners and general partners. For a limited partnership company, the former is the owner of the enterprise and the latter is the operator of the enterprise. The purpose of limited partnership real estate fund is to obtain real estate that can generate the maximum cash flow, and may adopt the strategy of buying income-generating real estate with cash. The purpose of investors will determine the investment purpose and corresponding strategies of limited partnership real estate funds. Limited partnership real estate funds usually have two forms: fund system and commitment system.

Limited partnership real estate investment fund

Generally, it consists of a general partner (fund management company) with unlimited liability and one or more partners (fund investors) with limited liability. Mainly raise funds by private placement, and use the raised funds for real estate investment. In this form of fund organization, the general partner is responsible for the operation and management of the fund and bears unlimited liability for the fund debts; Limited partners have ownership but no right to operate, and do not bear unlimited liability.

The investment direction of limited partnership real estate investment funds is strictly limited to real estate-related securities (including stocks of real estate listed companies, real estate backed bonds, mortgage bonds, etc.). ) and real estate assets 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 flow.

The general partner of a limited partnership fund is liable for unlimited repayment, so it is generally stipulated that the fund will not buy the property in the form of debt when initiating the establishment of the fund, unless the property invested by the fund needs renovation, maintenance and other measures to improve the property status, and the fund itself has difficulties in cash flow, appropriate financing can be carried out, but the financing ratio generally does not exceed 25% of the value of the investment property.