Real estate investors are often told that they are the ones who will «grow» the real estate industry, when in fact they will simply get richer and more successful as a result of their investments.
Unfortunately, many of the «growers» and «recyclers» are not the ones doing the growing.
The people making the money, in this case, are not actually growing the industry.
The «grower» or «recycleer» are simply making money off of the people who have already invested in the company and are in a position to make a profit on their investment.
The average real estate investor does not actually get to profit off the investments made by the «recycling» company.
What’s worse, the «investor» or the «owner» is the one who is being asked to pay off the debt of others by making the investment himself.
In the end, investors will simply be getting richer while the people holding the debt are getting poorer.
This is not to say that the «real estate» industry does not need «reform,» but we would like to see it come with a much clearer definition of what «revision» means.
Let’s take a look at the different types of «reforms» that real estate investment companies are offering investors.
There are four types of real estate «re-initiatives»: REIT-1 – REITs are companies that are registered with the Securities and Exchange Commission.
They are required to offer their stock to investors on an «open exchange» basis, in a manner that is free from manipulation or other unfair practices.
REIT stocks are traded on exchanges that are not under the control of the company, but are managed by the company.
REITS are subject to a variety of restrictions that are intended to prevent manipulation and to prevent the stock from being bought or sold unfairly.
REI (Real Estate Investment Trust) – REIs are companies with no ownership structure and are therefore not required to provide a publicly available stock listing.
They do not have to disclose the ownership of their stock and are not required by law to report their profits.
REIS also do not require the disclosure of any material transaction in their business, such as a merger or acquisition.
REIs must file a financial statement and disclose all transaction expenses in the following manner: «All transactions that involve the Company’s business are disclosed in accordance with GAAP and SEC regulations, and are recorded as a transaction on the balance sheet.»
REIs also must file annual financial statements that disclose all income and expenses and provide an annual audit report that shows the Company has met certain financial reporting requirements.
REII (Real estate Investment Trust Investment Management) – The REII is a wholly-owned subsidiary of a REIT.
The company owns the REIT stock.
The REIT does not have a publicly disclosed stock listing, but it does have a board of directors that meets quarterly and annually and meets annually to review and make recommendations regarding the future of the REI stock.
A REIT can be an REIT in a variety and types of ways, and the REIC must disclose all transactions involving the company’s business and the shareholders in a way that allows for the independent assessment of the financial performance of the shares.
The SEC has recently tightened its definition of a «receiving public company,» which means that a company can no longer be a REI and no longer hold REI shares.
REICs must report their results in accordance to GAAP rules.
REIP – The ReIP is a privately held company that does not disclose its income or expenses.
REIPS are subject not only to the SEC regulations but also to the Freedom of Information Act.
REISA (Revenue Recognition Improvement Act) – A reversionary tax is an act that allows the U.S. government to tax income or profits earned before a person voluntarily pays taxes to a foreign jurisdiction.
The U. S. government may, for example, claim the income of a corporation that was created in a tax haven, and then sell the income to a tax collector.
The income is then taxed at a lower rate than if the corporation had paid taxes to the foreign jurisdiction, and may result in the U
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