Real estate agents who manage large real estate assets

I AM A REAL ESTATE AGENT AND I HAVE OWN CUSTOMERS OF LARGE PROPERTIES WHO WANT TO GIVE IT AWAY BUT CAN'T. I WOULD LIKE TO KNOW IF THE SECURITIZATION OF SUCH REAL ESTATE ASSETS CAN SOLVE THE PROBLEM.

In order to facilitate the knowledge of this important tool, we provide below some information on the securitization of properties.

Securitization is a financial technique involving the conversion of an illiquid asset, such as real estate, into marketable securities. This process allows property owners to obtain liquidity by selling the securities to investors.

Securitization could be a solution for large property owners who want to get rid of them but are unable to do so in the traditional way. However, there are some factors to consider:

Property valuation: Before proceeding with the securitization, it will be necessary to value the property accurately to determine its market value. This valuation is essential in determining the price of the securitized securities.

1. Structure of the securitization: The structure of the securitization will need to be established according to the needs of the property owner. This structure includes the creation of a vehicle company, the definition of the rights and duties of the investors, the division of the cash flows deriving from the properties and the determination of the guarantees offered.

Investor interests: It will be important to consider the interests of investors. As the securitized properties become marketable securities, it will be necessary to attract investors who are willing to buy these securities. It will be important to present an attractive offer and provide a clear view of potential returns.

Regulatory and legal aspects: Real estate securitization involves several regulations and legal aspects that need to be considered. It is advisable to involve professionals specialized in real estate law and structured finance to ensure that the process complies with applicable laws and regulations.

Professional assistance: Given the complexity of real estate securitization, it is advisable to consult experienced professionals in the field, such as real estate lawyers and financial advisers, who can provide personalized advice and guide you through the process.

It is important to note that securitization involves significant costs, such as legal and advisory fees, and takes a certain amount of time to complete.

For this purpose we offer professional advice specialized in real estate securitization to assess whether this option is suitable for the specific needs of your clients and to obtain an accurate assessment of the potential costs and benefits.