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Hello,

I have a contact in the commercial real estate business who periodically has private placement investment opportunities. Minimum investments are high enough that average retail investors cannot realistically participate in these types of investments.

I was wondering about the possibility/legality/operational issues involved in potentially starting a company and collecting money from smaller retail individuals who would like to have exposure to such private placements? Does anybody have any ideas as to how this could possibly be structured in Canada?

Thank you!
 

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Trying to figure how to do your own clone of a REIT?

I think othere will go with the REIT for the transparency.
Any venture has fees, The larger the ventrure the possibilitiy exists for fees to be lower . Note I said possisbility.

There are less than transparent transactions always possible in real estate, but I would be tempted by a REIT first.

Private placements in real estate to me inply a deal not ready for the bank to touch, so you better know what you are doing.
You could get seriously burned from economic, business cycle or interest rate changes that deviate from that which your models may attempt to predict.
 

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'If I'm not mistaken these larger private placements are actually offered to accredited investors for a reason. Accredited investors are supposed to be more sophisticated and able to elude scams.

Due diligence is paramount and with a person investing 150K plus they generally make sure that they look deeply, in any case these "opportunities" are restricted to high net worth individuals.
 

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There are many private REITs out there, but you have to be a accredited investor to participate. Even then you need to be wary, especially as you indicate you didn't even know they exist.

They tend to be very illiquid even if they are legitimate, where many illegitimate ones can exist.

There are many investments out there that are only open to accredited investors. And many of them lend themselves to being Ponzi schemes if you don't know what to look for.
 
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