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Monday, January 31, 2011

Keller Williams Real Estate Glossary


Acceptance: the date when both parties, seller and buyer, have agreed to and completed signing and/or initialing the contract. Adjustable Rate Mortgage: a mortgage that permits the lender to adjust the mortgage's interest rate periodically on the basis of changes in a specified index. Interest rates may move up or down, as market conditions change. Amortized Loan: a loan that is paid in equal installments during its term. Appraisal: an estimate of real estate value, usually issued to standards of FHA, VA and FHMA. Recent comparable sales in the neighborhood is the most important factor in determining value Appreciation: an increase in the value of a property due to changes in market conditions or other causes. The opposite of depreciation. Assumable Mortgage: purchaser takes ownership to real estate encumbered by an existing mortgage and assumes responsibility as the guarantor for the unpaid balance of the mortgage. Bill of Sale: document used to transfer title (ownership) of PERSONAL property. Cloud on Title: any condition that affects the clear title to real property. Consideration: anything of value to induce another to enter into a contract, i.e., money, services, a promise. Deed: a written instrument, which when properly executed and delivered, conveys title to real property. Discount Points: a loan fee charged by a lender of FHA, VA or conventional loans to increase the yield on the investment. One point = 1% of the loan amount. Easement: the right to use the land of another. Encumbrance: anything that burdens (limits) the title to property, such as a lien, easement, or restriction of any kind. Equity: the value of real estate over and above the liens against it. It is obtained by subtracting the total liens from the value. Escrow Payment: that portion of a mortgagor’s monthly payment held in trust by the lender to pay for taxes, hazard insurance and other items as they become due.

CAMP 4:4:3 Tool Kit

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Real Estate Glossary © 2006 Keller Williams Realty, Inc.

Real Estate Glossary (continued)
Fannie Mae: nickname for Federal National Mortgage Corporation (FNMA), a tax-paying corporation created by congress to support the secondary mortgages insured by FHA or guaranteed by VA, as well as conventional loans. Federal Housing Administration (FHA): an agency of the U.S. Department of Housing and Urban Development (HUD). Its main activity is the insuring of residential mortgage loans made by private lenders. The FHA sets standards for construction and underwriting but does not lend money or plan or construct housing. FHA Insured Mortgage: a mortgage under which the Federal Housing Administration insures loans made, according to its regulations. Fixed Rate Mortgage: a loan that fixes the interest rate at a prescribed rate for the duration of the loan. Foreclosure: procedure whereby property pledged as security for a debt is sold to pay the debt in the event of default. Freddie Mac: nickname for Federal Home Loan Mortgage Corporation (FHLMC), a federally controlled and operated corporation to support the secondary mortgage market. It purchases and sells residential conventional home mortgages. Graduated Payment Mortgage: any loan where the borrower pays a portion of the interest due each month during the first few years of the loan. The payment increases gradually during the first few years to the amount necessary to fully amortize the loan during its life. Lease Purchase Agreement: buyer makes a deposit for future purchases of a property with the right to lease property in the interim. Lease with Option: a contract, which gives one the right to lease property at a certain sum with the option to purchase at a future date. Loan to Value Ratio (LTV): the ratio of the mortgage loan principal (amount borrowed) to the property’s appraised value (selling price). Example – on a $100,000 home, with a mortgage loan principal of $80,000 the loan to value ratio is 80%. Mortgage: a legal document that pledges a property to the lender as security for payment of a debt. Mortgage Insurance Premium (MIP): the amount paid by a mortgagor for mortgage insurance. This insurance protects the investor from possible loss in the event of a borrower’s default on a loan. Note: a written promise to pay a certain amount of money.
Real Estate Glossary © 2006 Keller Williams Realty, Inc.

CAMP 4:4:3 Tool Kit

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Real Estate Glossary (continued)
Origination Fee: a fee paid to a lender for services provided when granting a loan, usually a percentage of the face amount of the loan. Private Mortgage Insurance (PMI): see Mortgage Insurance Premium. Second Mortgage / Second Deed of Trust / Junior Mortgage / Junior Lien: an additional loan imposed on a property with a first mortgage. Generally, a higher interest rate and shorter term than a “first” mortgage. Settlement Statement (HUD-1): a financial statement rendered to the buyer and seller at the time of transfer of ownership, giving an account of all funds received or expended. Severalty Ownership: ownership by one person only. Sole ownership. Tenancy In Common: ownership by two or more persons who hold an undivided interest without right of survivorship. (In event of the death of one owner, his/her share will pass to his/her heirs. Title Insurance: an insurance policy that protects the insured (buyer or lender) against loss arising from defects in the title.

CAMP 4:4:3 Tool Kit

v1.2

Real Estate Glossary © 2006 Keller Williams Realty, Inc.


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Payton Scheduled as Program Leader Moderator for Florida 2011 ...

Payton Scheduled as Program Leader, Moderator For Florida 2011 Distressed Real Estate Summit
By Lisa M. Tipton, APR - PR Florida, Inc. Dated: Jan 10, 2011

Business litigation expert Harry A. Payton of Payton & Associates LLC in Miami will serve as a workshop leader and panelist at Florida’s 2011 Distressed Real Estate Summit on Jan. 27, 2011. Miami – Business litigation expert Harry A. Payton of Payton & Associates LLC in Miami will join a distinguished group of speakers as a workshop leader and panelist at Florida’s 2011 Distressed Real Estate Summit, part of the United States’ top conference series focused on developing and capitalizing on opportunities in distressed real estate assets. Payton is one of only 97 Florida attorneys who is board certified by The Florida Bar in both business litigation and civil trial. The January 27, 2011, Florida summit will be held in Miami and is part of a nationwide series hosted by GreenPearl Events in New York, Texas, Florida, California and the Midwest. Payton is scheduled as a workshop leader for “When Workouts Don’t Work Out – Litigation, Receivers, Lender Liability and More,” and will moderate or serve as a panelist for the "Workouts & Recapitalization" panel. According to GreenPearl Events, the Distressed Real Estate Summit addresses all aspects of challenges and risks in distressed real estate markets, as well as successful strategies for handling distressed property and notes. The summit covers both residential and commercial markets and a range of deal sizes from high-net-worth to institutional-grade. More than 2,000 have attended GreenPearl Events’ Distressed Real Estate Summit series around the U.S. For more information, contact Payton & Associates at (305) 372-3500, ext. 16. ### About Payton & Associates LLC: The attorneys at Payton & Associates regularly counsel and provide litigation services to clients involved in commercial real estate projects and represent clients in all types of commercial litigation in Florida state and federal courts, mediations and arbitrations.
Category Tags Email Phone Address City/Town State/Province Zip Country Real estate, Legal, Property the florida bar, business litigation, board certified, distressed real estate, legal expert Click to email author 305-372-3500 One Biscayne Tower, 2 S. Biscayne Blvd., Ste. 1600 Miami, FL Miami Florida 33131 United States

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Leschi Homes For Sale <b>Real Estate</b> Update 1/12/2011 – Seattle Homes <b>...</b>

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Top Ten Most Searched <b>Real Estate</b> Markets in 2010 | RISMedia

RISMEDIA, January 12, 2011—While many real estate markets in 2010 experienced extraordinary highs and lows in response to tax credits, low interest rates and price swings, consumer interest in real estate remained consistent. Las Vegas and Los Angeles came in as the first and second most searched markets every month in 2010, while Orlando, San Antonio and Miami vied as the third, fourth and fifth most searched cities respectively. Phoenix, San Diego, Austin, Tampa and Chicago, in that order, held the sixth through tenth positions as the most searched markets in 2010.

The top ten most searched real estate markets in 2010 were established based on the number of visitors that viewed properties in each Metro Service Area (MSA) in the United States from January 2010 to December 2010 on Realtor.com, one of the leading homes-for-sale websites operated by Move, Inc., a leader in online real estate.

In early 2010, home sales and prices rose throughout the country faster than they had for several years. This was largely in response to the Federal home buyer tax credit for first-time and repeat buyers. After the Federal home buyer tax credit expired at the end of April 2010, sales slowed throughout the country in summer and fall 2010—even though mortgage rates remained low, and dropped below 4% in the fall. List prices and actual sale prices continued to fluctuate in response to sales, foreclosure, and other trends throughout 2010.

Despite changing market conditions in 2010, the nation’s most searched destinations remained remarkably consistent, focusing on the sunshine states of California, Nevada, Florida, Texas and Arizona.

“Online search is a critical measure of interest in real estate, especially now that more than 90 percent of buyers search for their homes online,” said Realtor.com President, Errol Samuelson. “As the number one homes for sale website, searches on Realtor.com show us where the highest potential for activity is across the country. Changing conditions throughout 2010 in the sunshine states resulting from foreclosures, the tax credit, interest rates and other factors created more interest in real estate compared to other states that we hope leads to increased activity and sales in 2011.”

For more information, visit www.Realtor.com and www.move.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Have you heard about RISMedia’s Real Estate Information Network® (RREIN)? RREIN is an elite network of leading real estate companies dedicated to providing consumers and their agents with leading real estate information, and committed to the belief that Information Share Equals Market Share. Having only launched this past June 2010, the RREIN network is already comprised of 40 leading brokerages, which make up 575 offices, 30,000 agents, 167,000 closings and represents over $41 billion in transactions. How can RREIN help your recruiting efforts and differentiate your company today? For more information, email rrein@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

For additional latest headlines on RISMedia.com, check out:
Growing Number of Homeowners Becoming Landlords
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The restaurant is a barometer of the <b>real estate</b> market - <b>Real</b> <b>...</b>

The restaurant is a barometer of the real estate market. Casual in London, New York and Hong Kong rich district or any upscale residential area of the French market, look at local restaurants, the best restaurants almost always overcrowding; other restaurant you do not do so. To Manhattan, Chelsea Chelsea, located in London and the Hong Kong Central Central Hong Kong, are a good lot of the restaurant, to feel more than two years ago, wallet, black depressed economic setback their investment, especially in the name of the property. The attendant financial markets rebounded to let them feel great to ride. In view of the financial markets Ugg Classic and upscale residential between Super and relevancy, million dollar above along with the rising housing prices are not surprising. Worldwide real estate developers and high grade owner are the same feeling: the real estate market is back on track, some places have prices push back, even more than in 2007. This makes the market optimists, splashing cold water seems to be feeling some. Today’s real estate market may once again for the better from the current rate of rebound at the end of 2008 but not necessarily be so optimistic.

In fact, although almost global national real estate market in the past year has seen moderate growth, but now worried that they may vary depending on the economy into a terrible at the end of the second exploration. In the financial crisis, at least in most real estate markets have been stabilised, part of the market even emerged in the rebound. However, the situation remains fragile, more and more. The Royal institution of Chartered Surveyors, RICS Royal Institution of Chartered Surveyors report said its members available data indicate Cardy Boots that prices are falling, rather than rising to the questionnaire indicate that the buyer the purchase price will decline further down, forcing, and forecasts for the year 2010 compared to the prices will drop 5% in 2011, will continue to downlink. In the United States, Allen Greenspan (Alan Greenspan) price at the end of the “small” small dip most economists are forecasting expressed the same concerns. He thinks that this will lead to the loss of foreclosure translator’s note foreclosure, foreclosures could not pay the mortgage, the Bank recover the housing, a large number but at the end of the “small house” could repair itself.

The deciding factor on House prices, there are basically two schools. The rating agencies Standard & Poor’s standard & poor Europe’s Chief Economist, Jean-Michel West sussex Jean-Michel Six the adoption of the financial market perspective on House prices. In his view, we might yet see 1997-2007 real estate bubble caused by imbalances thorough revision, such as declining purchasing power as well as soaring prices of rent. Real estate market and other financial markets are very much the price expected from the normal purchasing power ratio continues to drive House prices rise. However, the House passed the mean reversion mean reversion Uggs Boots will return to normal levels, thereby creating specific cyclical real estate boom and bust. On the contrary, the international real estate consulting structural consultants competent Lu Xian ? Cook (Lucian Cook) are even more dependent on the real estate market supply and demand fundamentals of itself, but he equally pessimistic. He stressed that the current real estate market demand was weak, and he argues that “the greater and the overall economic situation, once income prospects more pessimistic, the purchase will be a turning point.” He added: “the price movements can be fake, but the housing transaction volume never, and lower prices compared to the same period last year, even if the mortgage of the supply situation has substantially improved.

Of course, economic driving school and the real estate supply and demand were both good. Price changes are always the price expectations and real estate itself a product of fundamental interactions. The real estate market from an entirely different effect of the two major forces: the safe, profitable investment will and make the needs. These motives at different times, different regions play a different role. There is no uniform global real estate market. Some factors are universal: credit crunch subdued consumer confidence and the Cheap Ugg Boots impact on the mortgage. However, the world’s stimulus package, and taking ownership of the overall situation has stabilized. Several countries adopt incentives directly benefit buyers, such as the United States federal tax deduction method tax credit. However, the outlook for the next 10 years, different national practices for the real estate market and the credit crunch is likely to be 10 years before.

Some countries Ireland and Dubai already exists in the real estate bubble. They are the real estate market activity to a great extent caused by the buyers, they took the premises as intriguing speculation rather than home. They hope that within a very short period of time the other buyers, or to obtain cash, the reasons for rising house prices seen desires to purchase a new House again. Building contractors hurry to the lively, popular with the construction industry. In these countries are in the real estate market, the housing bubble burst resulting in a surplus of supply continues to be a backlog of all housing only digested, sustained recovery just might. Every recovery are a speculator and financial institutions disposed in the hands of the inventory. In some other experienced real estate Cheap Ugg Boots has risen sharply in countries such as the United Kingdom and France, speculation and supply and demand fundamentals can play a role, but more balanced between the two. Most people buying a used home, rather than sold. It is not difficult to understand, rising is a lower nominal rate of interest and practice from inflation interest rates. In these countries, rising by comfortable housing and correspondingly good lots of deprivation. Rates and various types of equity markets, may be too high, however, higher than the price of the latest prices and rates Ugg Boots Sale are completely divorced from the economic fundamentals of foam are two separate issues.

The restaurant is a barometer of the real estate marketare a good lot of the restaurant, to feel more than two years ago, wallet,


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<b>Real Estate</b> Today Celebrates 100th Show | RISMedia

RISMEDIA, January 12, 2011—Real Estate Today, the national talk radio show produced by the National Association of REALTORS®, celebrates its 100th show this weekend. Now one of the fastest growing real estate shows in the country, Real Estate Today can be heard on more than 120 stations across the U.S, including in every top-10 market.

“The 100th show is a significant milestone in talk radio, and we’re proud of this achievement,” said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “The overwhelming success of Real Estate Today underscores just how much homeownership matters to consumers. NAR is committed to being the best real estate resource for homeowners, buyers and sellers, and Real Estate Today helps us do that.”

Launched in February 2009, Real Estate Today offers a fast-paced format that includes the week’s top real estate news, field reports and customizable segments on local market conditions. Listeners can call in with questions and concerns about their local market, share personal homeownership, buying and selling experiences, and receive advice from real estate industry experts. Real Estate Today reaches an estimated one million listeners each month, with an estimated 500,000 digital downloads and streaming online.

“For so many people, home is at the heart of their lives,” said Real Estate Today Host Gil Gross. “Real Estate Today has given me the opportunity to talk to people across the country about what really matters to them when it comes to buying, selling or owning a home, and I look forward to continuing the discussion as we begin our next 100 shows.”

The show also airs nationwide on XM Satellite Radio, and worldwide at www.retradio.com. Listeners can visit anytime to hear current or past programs. The program is available on iTunes, where it can be transferred to iPods, iPhones, MP3 players, and other digital listening devices.

For more information, visit www.realtor.org.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Have you heard about RISMedia’s Real Estate Information Network® (RREIN)? RREIN is an elite network of leading real estate companies dedicated to providing consumers and their agents with leading real estate information, and committed to the belief that Information Share Equals Market Share. Having only launched this past June 2010, the RREIN network is already comprised of 40 leading brokerages, which make up 575 offices, 30,000 agents, 167,000 closings and represents over $41 billion in transactions. How can RREIN help your recruiting efforts and differentiate your company today? For more information, email rrein@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

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Sunday, January 30, 2011

SAMPLE - Private Placement for Real Estate Fund


Memorandum # __________________

NAME OF FUND, L.P.
(A Delaware Limited Partnership) CONFIDENTIAL PRIVATE OFFERING MEMORANDUM This memorandum (the” Memorandum”) has been prepared solely for prospective investors considering the purchase of limited partnership interest (the “Interest”) in Name of Fund, LP, a Delaware limited partnership (the “Fund”). Any reproduction or distribution of this Memorandum, in whole or in part, or the disclosure or its contents, without the prior written consent of the Fund, is prohibited. In making an investment decision, investors must rely on their own examination of the Fund and the terms of the offering, including the merits and risks involved. The Interests have not been recommended by any U.S. federal or state or any non-U.S. securities commission or regulatory authority. Furthermore, the foregoing authorities have not confirmed the accuracy or determined the adequacy of this document. Any representation to the contrary is a criminal offense. There are “Forward-Looking Statements” throughout this Memorandum. Whenever you read a statement that is not simply a statement of historical fact (such as when we describe what we “believe”, “expect” or “anticipate” will occur and other similar statements), you must remember that our expectation may not be correct, even though we believe they are reasonable. We do not guarantee that the offering and events described in the Memorandum will happen as described (or that they will happen at all). You should read this Memorandum completely and with understanding that actual future results may be materially different from what we expect. We will not update these Forward-Looking Statements, even though our situation may change, The Interest have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws, and will be offered and sold for investment only to qualifying recipients of this Memorandum pursuant to the exemption from the registration requirements of the Securities Act provided by Section 4(2) thereof and in compliance with any applicable state or other securities laws. The Interests may not be transferred or resold except as permitted under the Securities Act and the applicable state of other securities laws pursuant to registration or exemption therefrom. In addition, such Interest may not be sold, transferred, assigned or hypothecated, in whole or in part, except as provided in the Limited Partnership Agreement referred to herein. Accordingly, investors should be aware that they will be required to bear the financial risks of an investment in the Interests for an indefinite period of time. There will be no public market for the Interests, and there is no obligation on the part of any person to register the Interest under the Securities Act or any state securities laws. The Interest are offered subject to prior sale, and subject to the right of Name of Management Company, LLC, the General Partner of the Fund, to reject any subscription in whole or in part.

Private Placement by RealEstateCapitalPro.com Name of Fund, L.P. TABLE OF CONTENTS I. EXECUTIVE SUMMARY.................................................................................................................................1

  Overview ................................................................................................................................................................................... 1

  Investment Objectives ........................................................................................................................................................... 1

  The General Partners and Manager .................................................................................................................................. 1

  Estimated Sources and Uses................................................................................................................................................ 3

  II. EXECUTIVE SUMMARY OF KEY TERMS...........................................................................................4

  III. INVESTMENT STRATEGY .........................................................................................................................5

  Overview ................................................................................................................................................................................... 5

  Overview of the Investment Strategy............................................................................................................................... 5

  Elements of Strategy.............................................................................................................................................................. 5

  Types of Investments............................................................................................................................................................. 6

  Acquisition Strategy .............................................................................................................................................................. 6

  Investment Process................................................................................................................................................................. 7

  Investment Analysis............................................................................................................................................................... 7

  Decision Making Process..................................................................................................................................................... 8

  Management of Portfolio ..................................................................................................................................................... 9

  Exit Strategy ............................................................................................................................................................................. 9

  Areas of Investment Interest in the Current Market.................................................................................................... 9

  Mortgage Financing ............................................................................................................................................................... 9

  IV. MANAGEMENT............................................................................................................................................. 11

  V. SUMMARY OF TERMS AND CONDITIONS..................................................................................... 12

  VI. INVESTMENT CONSIDERATIONS ..................................................................................................... 20

  VII. POTENTIAL CONFLICTS OF INTEREST ........................................................................................ 25

  VIII. CERTAIN ERISA, TAX AND LEGAL MATTERS....................................................................... 26

  Employee Benefit Plan Regulations.............................................................................................................................. 26

  United States Tax Status.................................................................................................................................................... 26

  Tax-Exempt Investors ........................................................................................................................................................ 28

  Special Considerations for Foreign Investors ............................................................................................................ 29

  Other Important Tax Disclosures ................................................................................................................................... 30

  Investment Company and Investment Advisors Regulation ................................................................................. 31

  Private Placement Status ................................................................................................................................................... 31

  Restrictions on Transfer..................................................................................................................................................... 31

  Additional Information ...................................................................................................................................................... 31

I. EXECUTIVE SUMMARY Overview In this introductory section, provide a brief overview of the investment fund. Discuss the types of investments and properties the fund will target; the range of investments; the management of the fund; and brief bios of the principals. Name of Fund, L.P. (the “Partnership” or the “Fund”) is a Delaware limited partnership established by Name of Management Company, LLC (the “General Partner” or the “Manager”) to make investments in a variety of real estate properties including retail, industrial, commercial and residential properties. The Fund is seeking capital commitments of $xx million. The General Partner anticipates that the Fund’s investments will be focused on properties located in secondary and tertiary markets, and will generally have valuations of less than $xx million. Based on the experience of the General Partner’s investment professionals, investments in this segment of the market have historically been made at attractive valuations providing for attractive long-term risk adjusted returns. The Fund’s investments are expected to range in size from $x million to $x million; however, investments in any single property (excluding bridge financings) will not exceed xx% of the Fund’s total capital commitments. It is expected that the Fund will make investments in xx to xx properties over its life. The Fund will invest in a diversified mix of performing and distressed opportunities. Such a diversified mix has proven in the past to provide attractive and consistent results. This strategy is designed to build a relatively lower risk real estate portfolio with a high percentage of successful investments. Investment Objectives Provide your investors an overview of the investment objectives of the fund. Investment objectives include preservation of capital, current cash dividends, long-term capital gains, etc. The investment objective of the Partnership is to maximize total return on capital by seeking capital appreciation and, from time to time, current income, through the acquisition, development and management of a diversified portfolio of real estate properties. The General Partners and Manager The Manager will manage the day-today operations and the portfolio of real estate assets. The Manager will also provide asset-management, marketing, investor relations and other administrative services on behalf of the Partnership with the goal of maximizing operating cash flow and profits. The Manager’s investment team is comprised of professionals with a strong track record and over xx years of combined experience in real estate investing [and other relevant experience]. The Manager’s investment team has the unique ability to create proprietary deal flow and to assist in evaluating, structuring, and executing potential investments.

Operating out of Cincinnati, Ohio for more than fifteen years, the Manager has, either directly or through affiliates used its expertise to acquire, finance, manage and resell a variety of property types, including: ? Example #1 ? Example #2 ? Example #3 ? Example #4 The three managing partners, Messrs. Jones, Smith and Davis (collectively, the “Principals”), have worked together for over xx years at …Each of the Principals have a minimum of xx years of experience in a variety of real estate related disciplines, including, sales, marketing, leasing, development, construction, construction management, and valuation. ? Mr. Jones (short three or four sentence bio)… ? Mr. Smith (short three or four sentence bio)… ? Mr. Davis (short three or four sentence bio)… The Principals believe that the Fund represents a highly attractive risk-adjusted investment opportunity for the following reason: ? Experienced Management Team – The principals have more than xx years of combined experience in real estate and have demonstrated the ability to creatively structure transactions to minimize risk. [Add other relevant experience that your team brings to the table; e.g. leasing, sales, property management, turnaround experience. Anything that dovetails into the franchise of your Fund] Proactive Transaction Sourcing – Over the past xx years, the Principals have developed business relationships and proprietary transaction sourcing that historically have resulted in a higher percentage of negotiated transactions, which typically translate into more reasonable valuations. Proven Investment Strategy – the Fund will follow a disciplined strategy that maximizes risk-adjusted investment returns by focusing on fundamental analysis and extensive due diligence the Principals have successfully followed this strategy…. Advisory Board – the Fund’s Advisory Board will consist of... Investment Merit #5 – Reason #5 why the Fund will perform.

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?

? ?

Estimated Sources and Uses
Sources General Partner’s Investment Limited Partners’ Investment Total Sources $x,xxx,xxx Xx,xxx,xxx $xx,xxx,xxx Uses Organizational Fees (1) Legal and Accounting Expenses (2) Available for Investment Total Uses $xxx,xxx Xxx,xxx Xx,xxx,xxx $xx,xxx,xxx

NOTES:
(1)

The General Partners will receive a maximum of XX Thousand Dollars ($xx,000) for their efforts in establishing and organizing the Partnership. (2) The Partnership may pay up to $xxx,xxx for accounting and legal costs associated with the formation of the Partnership.

II. EXECUTIVE SUMMARY OF KEY TERMS
The following information is presented as a summary of certain of the Partnership’s key terms and conditions only and is qualified in its entirety by reference to the “Summary of Terms and Conditions” in Section V herein and to the limited partnership agreement of the Partnership and the subscription agreements relating thereto, copies of which will be provided to qualified investors prior to closing.

The Partnership General Partner Offering Size Minimum Commitment General Partner Investment Commitment Period Term Distributions of Proceeds from Realized Investments

Name of Fund, L.P., a Delaware Limited Partnership. Name of Management Company, LLC, a Delaware Limited Liability Company. $xx million, subject to increase or decrease at the discretion of the General Partner. $x million, subject to lesser amounts being accepted at the discretion of the General Partner. At least x% of total Commitments. Number (x) years from the initial Closing. Number (xx) years, subject to number (x) consecutive number-year extensions. In general, proceeds from realized investments with respect to each partner will be distributed as follows: i. a return of capital of all invested capital; ii. a Priority Return of x% on such invested capital; iii. 100% to the General Partner as a “catch-up” until the General Partner has received 20% of distributed profits; and thereafter iv. 80% to the partners and 20% to the General Partner.

Clawback Management Fee Reimbursement of Management Fee

Yes During the Commitment Period, x.0% per annum of total capital commitments. Thereafter, x.0% per annum on funded commitments. Any sales commissions, property management fees, leasing commissions received in connection with a fund investment shall be credited 100% against the Management Fee, net of un-reimbursed expenses, but not below zero. The Partnership will bear up to $xxx,xxx of organizational expenses, excluding placement fees, if any, which will be borne by the General Partner 4

Offering and Organizational Expenses

III. INVESTMENT STRATEGY Overview Provide a brief overview of what the Fund’s objectives are. For example: The Partnership has been organized to invest in diversified portfolio of real estate properties primarily located in secondary and tertiary markets. The General Partner has successfully employed this strategy since 19xx. The General Partner believes that the opportunities in secondary and tertiary markets provide better risk-adjusted returns than more competitive primary markets. Overview of the Investment Strategy Provide an overview of the investment strategy of the fund – what and how the Fund will go about achieving its objectives. The investment strategy of the Fund includes: 1. Identify undervalued real estate investment opportunities located in secondary and tertiary markets across several property types including…; 2. Aggressively manage each asset acquired by…; and, 3. Execute a well-defined exit strategy for each investment made. Elements of Strategy This section provides your prospective investors with some insight into the principles of how you think about your investment strategy. Below is some sample language. ? Risk Control - The Fund will control the risk in its investments by various means, including structuring transactions to protect value in downside scenarios, and developing multiple exit strategies. The Fund will try to avoid situations where uncontrollable factors or adverse market conditions might result in total loss of the investment. Consistency of Returns - The Fund has a strong preference for a portfolio that has a larger percentage of successful investments as opposed to a scenario where a few highly successful investments make up for a large number of poor performers. The Fund’s investment strategy is designed to yield a high “batting average” rather than a few “home runs”. Focus on Smaller Transactions - The Fund will focus on transactions on the smaller end of the market by focusing on transaction sizes of less than $xx million, and where the total equity investment will be $x million to $ x million. Avoidance of Volatility - As part of its strategy to limit risk and produce consistent returns, the Fund will avoid exposure to risks and situations that tend to produce highly variable

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investment outcomes or where external risks cannot be overcome by good management execution. ? Influence on Desired Outcomes - The General Partner will seek to add value to the Fund ‘s investment positions through active management of the portfolio of assets. The General Partner will seek to involve itself actively in all issues affecting an investment’s outcome, including the timing and method of exit.

Types of Investments To the extent the Fund intends to invest across different types of investments, describe those types of investment here. Examples may include distressed opportunities, development opportunities, mezzanine investments, minority equity investments, etc. Acquisition Strategy Quality deal flow is imperative for a successful Fund. Tell your investors how you source deals. Example language: To find properties that best meet the Fund’s criteria for investment, the General Partner has developed a disciplined investment approach that combines the experience of its team of real estate professionals with a structure that emphasizes thorough market research, stringent underwriting standards and an extensive down-side analysis of the risks of each investment. The Manager will generally seek to find a diverse portfolio of properties consisting principally of residential, office, industrial and retail properties located in secondary and tertiary markets. The Manager intends to identify potential acquisition candidates in the following ways: ? ? ? ? ? Utilizing existing bank and real estate brokerage relationships to obtain properties; Bulk REO purchases from seller mandates; Relationships with attorneys and accountants; MLS (multiple listing service); and Relationships with investors and brokers.

Many investments sourced through these approaches represent exclusive, non-auction opportunities, providing the Partnership with a strong competitive advantage over other distressed real estate investors. Though these are the guidelines and resources within which the Manager will work, meeting the Fund’s investment objectives will be achieved through the careful selection and underwriting of individual assets. When making an acquisition, the Manager will emphasize the performance and risk characteristics of that individual investment, how that investment will fit with the portfoliolevel performance objectives, the other assets in the portfolio and how the returns and risks of that investment compare to the returns and risks of available investment alternatives. The Manager believes that successful real estate investment requires the implementation of strategies that permit favorable purchases, effective asset and property management and timely

disposition of those assets. The Manager’s approach also includes active and aggressive management of each asset acquired. The Manager believes that active management is critical to creating value. The Manager will also develop a well-defined exit strategy for each investment made and then continually re-evaluate the exit strategy of each asset in response to the performance of the individual asset, market conditions and overall portfolio objectives to determine the optimal time to sell the asset. Investment Process Discuss the investment process you implement in processing a transaction. For example, you might state: Key elements of the General Partner’s investment process include: (i) identification of real estate investment opportunities, utilizing both conventional and proprietary sources of deal flow and emphasizing specific screening criteria with an appropriate spread between fundamental and perceived market value; (ii) thorough analysis of the prospective investment, including a liquidation analysis to help quantify the investment downside; and, (iii) active management and monitoring of portfolio investments until an appropriate exit opportunity arises.

Investment Analysis Once you have a deal in house, what is the due diligence process. Here, discuss what your underwriting and due diligence process is and what you do to make sure the investment fits your investment criteria. Sample language: The following practices summarize the Manager’s investment approach: • Market Research - The investment team extensively researches the acquisition and underwriting of each transaction, utilizing both “real time” market data and the transactional knowledge and experience of both the General Partner and its network of professionals.

• Underwriting Discipline – the Manager follows a tightly controlled and managed process to examine all elements of a potential investment, including, its location, income-producing capacity, prospects for long-range appreciation, income tax considerations and multiple exit scenarios. Only those real estate assets meeting the investment criteria will be accepted for inclusion into the portfolio. • Conditions to Closing Acquisitions- the Manager will perform a due diligence review on each property that to be acquired. As part of this review, an appraisal prepared by an appraiser approved by the Investment Committee will be obtained. The investment policy provides that the purchase price of each property will not exceed its appraised value at the time of the acquisition of the property. Appraisals, however, are estimates of value and will not be relied upon as measures of true worth or realizable value. The Manager will also generally seek to condition the Fund’s obligation to close the purchase of any investment on the delivery of certain documents from the seller or developer. Such documents include, without limitation: ? ? ? ? ? Appraisals; Environmental audits; Plans and specifications; Surveys; Evidence of marketable title, subject to such liens and encumbrances as are acceptable to the Manager; ? Title insurance policies; and ? Financial statements covering recent operations of properties having operating histories. The due diligence process is managed by investment professionals of the Manager. Typically, a comprehensive transaction summary will be prepared, including third-party analysis and/or valuation opinions. The transaction is then reviewed with the Investment Committee of the Manger to obtain approval of deal structure and to ensure compliance with concentration, sector, and other investment guidelines and Partnership restrictions (see below). Decision Making Process Discuss the approval process utilized by the Manager to get transactions approved. Sample language: The decision making process begins with the initial deal screening and culminates with the closing of a specific transaction. Once screened, qualified opportunities are logged into the Manager’s deal tracking system by the responsible deal team and reviewed throughout the investment cycle at the Manager’s weekly staff meetings. Transactions proceed from the proposal stage through due diligence to the Investment Committee stage only with continuous and satisfactory review of each opportunity by the General Partner’s investment professionals. Since detailed analysis and pricing negotiations are conducted by each deal team, receiving and responding to feedback at the staff meetings, or at ad hoc meeting of the Principals, is critical to bringing a specific transaction to a satisfactory conclusion. Deals may be turned down at any point in the process and deal sources are kept informed of the Manager’s progress on a regular

basis. There is an acute focus on valuation during this entire process to assure that investments are made at prudent and conservative price levels given market conditions at the time of the investment. This discipline approach provides solid downside protection while positioning the transaction for attractive return potential. Prospective investment proceed as long as the pricing, terms and conditions of the investment, as well as the due diligence, indicate an acceptable risk/return opportunity for the Manager. Final approval for investment by the Manager requires support by at least two of the three Principals. Management of Portfolio Discuss your portfolio management process: ? Do you outsource the property management and what is the selection criterion. ? Do you have in-house leasing capabilities and what are its limitations? ? How are portfolio managers assigned – by property type, investment type or geographic area? ? Is there a feedback loop back to the investment team? Exit Strategy In this section discuss how you think about the timing of an exit. It may be more general as the language below suggests, or more specific where you seek to exit upon achieving a specific IRR. The time horizon for Partnership real estate investments will typically be give range of years. The General Partner expects to exit a particular investment sooner if it becomes clear that value enhancement opportunities have been maximized or if the market value of the property increases rapidly. The decision to exit an investment is based on a variety of factors, including the property’s progress in achieving its potential, the General Partner’s view of the market’s dynamics, the appearance of a willing and able buyer, and the general state of the market. Areas of Investment Interest in the Current Market As applicable, discuss any investment opportunities that coincide with current market conditions that you want to take advantage of. For example, your skill set may be conducive to providing sale-leaseback financing for distressed companies given a recessionary economic environment. Or you may see opportunities to buy and hold residential building lots at a deep discount from a trouble lender or financially squeezed developer. Mortgage Financing If the Fund intends to utilize leverage to make investments, rather than all equity deals, here is sample language: The Fund intends to use mortgage financing to complete its acquisition of investment properties. There is no limitation on the amount that the Fund may borrow for the purchase of any single property. The Fund intends to limit its borrowings to xx% of the cost of all acquisitions. Careful use of debt will help the fund achieve its goals by extending the amount of funds available for

V. SUMMARY OF TERMS AND CONDITIONS
The following information is subject to the detailed provisions of the Agreement of Limited Partnership of Name of Fund, L.P. (the “Partnership Agreement”) and is qualified in its entirety by reference to such Partnership Agreement.

The Partnership General Partner Investment Objective

Name of Fund, L.P., a Delaware Limited Partnership (the “Partnership” or the “Fund”) Name of Manager, LLC (the “General Partner”, or the “Manager”) The Partnership will invest in a diversified portfolio of real estate properties including commercial, industrial, retail and residential, and will consist of both performing and distressed opportunities. Target investments will generally have valuations of $x to $xx million. The Partnership is seeking up to $xx million of aggregate capital commitments (“Commitments”), although the Partnership may accept more or less than that amount in the sole discretion of the General Partner. Each Limited Partner must be an “accredited investor” as defined under Rule 501(a) of Regulation D promulgated under the Securities Act of 1933. The Minimum Commitment to the Partnership shall be $x million, although the Partnership may accept commitments of lesser amounts in the sole discretion of the General Partner. The General Partner and its affiliates will make capital commitments to the Partnership of at least x.x % of the Partnership’s Commitments. The initial closing will occur as soon as practicable (the “Initial Closing”). The General Partner may establish the Partnership with minimum Commitments of $xx million. Subsequent closings (“Subsequent Closings”) may be staged and may held at the discretion the General Partner; provided, that no Subsequent Closing shall occur later than number months subsequent to the Initial Closing. Each Limited Partner that is admitted or increases its capital commitment to the Fund in a Subsequent Closing will make a Capital Contribution for its pro rata share of the Fund’s Capital Contributions previously made for any investments still held by the Fund at the time of such Subsequent Closing, and a Capital Contribution for Partnership Expenses (plus a prorated additional amount equal to the Prime Rate (as defined in the Fund’s Partnership Agreement) plus x% thereon from the date of each 12

Offering Size

Investor Eligibility

Minimum Commitment General Partner’s Capital Commitment Closing

Subsequent Closing

such previous Fund contribution to the date of the Subsequent Closing), and will share in any subsequent distributions and allocations of items of income, gain, loss or expense of the Fund that are attributable to any such Investment. Commitment Period At the end of the period (the “Commitment Period”) commencing on the Initial Closing date and ending number (x) years from the Initial Closing, all Partners will be released from any further obligation with respect to their unfunded Commitments, except to the extent necessary to: (i) cover expenses, liabilities and obligations of the Partnership, including Management Fees (as defined below); (ii) fund then existing written commitments (including without limitation, non-binding letters of intent) and complete investments by the Partnership in transactions which were in process as of the end of the Commitment Period; and (iii) effect follow-on investments in existing portfolio companies, which follow-on investments shall not exceed in the aggregate xx% of the Partnership’s aggregate Commitments, unless approved by the Advisory Board. The Partnership will terminate ten (10) years from the final closing date of the Partnership (the “Expiration Date”), but may be extended at the discretion of the General Partner for up to two (2) additional one-year periods to permit orderly disposition of investments. The Fund’s investment period will begin on the date of admission of the first Limited Partner and expire on the fifth anniversary of the final closing of the Fund (the “Investment Period”). Upon the termination of the Investment Period, Limited Partners will not be required to make any further capital contributions to the Fund, except to the extent necessary to: (i) cover expenses, liabilities and obligations of the Fund, including management fees; (ii) fund the existing commitments and complete investments by the Fund in transactions which were in process as of the end of the Investment Period; and (iii) effect follow-on investments in existing portfolio companies. The Capital Contribution for each Limited Partner will include such Limited Partner’s proportionate share of (i) Management Fees (as defined below); (ii) organizational and other related expenses attributable to the Partnership; and (iii) the original cost of any portfolio company investment made at or prior to such drawdown. Subsequent to the Initial Capital Contribution, commitments are expected to be drawn as needed, with not less than 10 days’ prior written notice. Commitments available for future Partnership investments and expenses will include any amounts returned to the Limited Partners and General Partners (collectively “Partners”) either (a) as a return of Commitments called in anticipation of an unconsummated Partnership

Term

Investment Period

Initial Capital Contribution

Subsequent Capital Contributions

13

investment, (b) from capital contributed by the Partners to any portfolio company investment that is realized within xx months of the date of such investment, or (c) any amount returned to the Partners to the extent Partnership expenses are funded by the Partner’s capital contributions (see Reimbursement of Management Fee). Furthermore, certain distributions to the Partners may be subject to recall to the extent necessary to satisfy liabilities of the Partnership. Distributions of Proceeds from Realized Investments In general, net proceeds realized from investments in portfolio companies (including distributions in kind of such investment), and any dividends, interest or other current income with respect to such investment, will be allocated and distributed to the Partners in the following order of priority: i. First, 100% to all Partners in proportion to their funded Commitments until the cumulative distributions in respect of investments then and previously disposed of equals the aggregate of the following: (a) the funded Commitments used to acquire all realized investments, plus written-down portions of unrealized investments, if any, with respect to each unrealized investment written down as of that time; and, (b) funded Commitments attributable to all organizational expenses and other Partnership expenses, including Management Fee, allocated to such investments; ii. Second, a preferred return on amounts included in (i) above at the rate of x% per annum compounded annually from the date on which a drawdown is required to be paid to the Partnership (the “Preferred Return”); iii. Third, 100% to the General Partner until the General Partner has received 20% of the excess of (a) the cumulative distributions made to all Partners over (b) the amounts described in paragraph (i) above; and iv. Thereafter, 80% to all Partners in proportion to funded Commitments and 20% to the General Partner (distributions to the General Partner described in paragraph (iii) and this paragraph (iv) are referred to collectively as the General Partner’s “Carried Interest”). Net income and losses from short-term investments of idle funds (other than short-term investments from proceeds of disposed of investments in portfolio companies), after deduction of the management fee and all other expenses, and cumulative net losses from long-term investments, will generally be allocated to the capital accounts of the Partners in proportion to their respective amounts of commitments.

14

VI. INVESTMENT CONSIDERATIONS
An investment in the Partnership involves the risk of the loss of capital. No guarantee or representation is made that the Partnership will achieve its investment objectives. There can be no assurance that investors will realize any profits from an investment in the Partnership. Investors in the Partnership will risk the loss of some of all of their investment. Because an investment in the Partnership involves significant risks, prospective investors should carefully consider the risks involved before subscribing. The following considerations should be carefully evaluated before making an investment in the Partnership.

In considering participation in the Partnership, an investor should be aware of certain risk factors that include, but are not limited to the following: Future Performance. The Partnership will seek to make investments that have estimated returns commensurate with the risks undertaken; there can be no assurances that the targeted internal rate of return will be achieved. On any given investment, loss of principal is possible. Concentration of Investments. The Partnership will participate in a limited number of investments and may seek to make several investments in one property type or one investment type. As a result, the Partnership’s investment portfolio could become highly concentrated, and the performance of a few holdings may substantially affect its aggregate return. Furthermore, to the extent that the capital raised is less than the targeted amount, the Partnership may invest in fewer portfolio properties and thus be less diversified. Lack of Sufficient Investment Opportunities. It is possible that the Partnership will never be fully invested if enough sufficiently attractive investments are not identified. The business of identifying and acquiring real estate transactions is highly competitive and involves a high degree of uncertainty. However, Limited Partners of the Partnership will be required to pay annual management fees during the Investment Period based on the entire amount of their commitment. Potential Conflicts. The members of the General Partner and the Management Company will continue to be principals in name of other entity. In such capacity, the Principals will be responsible for managing the activities of name of other entity, which will include, but not be limited to, making investments that, after seeking the counsel of the Advisory Board, do not meet the investment objectives of the Partnership, making follow-on investments, and disposing of portfolio investments of name of other entity in which the Partnership may or may not participate. See Section VII, “Potential Conflicts of Interest” for additional discussion and identification of potential conflicts of interest. Illiquidity; Lack of Current Distributions. An investment in the Partnership should be viewed as illiquid. It is uncertain as to when profits, if any, will be realized. Losses on unsuccessful investments may be realized before gains on successful investments are realized. The return of capital and the realization of gains, if any will 20

generally occur only upon the partial or complete disposition of an investment. While an investment may be sold at any time, it is not generally expected that this will occur for a number of years after the initial investment. Prior to such time, there may be no current return on the investments. Furthermore the expenses of operating the Partnership (including the annual management fee payable to the General Partner) may exceed its current income, thereby requiring that the difference be paid from the Partnership’s capital. Limited Transferability of Partnership Interests. There will be no public market for interests in the Partnership, and none is expected to develop. There are substantial restrictions upon the transferability of Partnership interests under the Partnership Agreement and applicable securities laws. In general, withdrawals of Partnership interest are not permitted. In addition, Partnership interests are not redeemable. Restricted Nature of Investment Positions. Generally, there will be no readily available market for a substantial number of the Partnership’s investments, and hence most of the Partnership’s investments will be difficult to value. Reliance Upon the General Partner. The Partnership’s future profitability will depend largely upon the business and investment acumen of the Principals and employees of the General Partner. Limited Partners generally have no right or power to take part in the management or investment decisions of the Partnership, and as a result the investment performance of the Partnership will depend entirely on the actions of the General Partner. General Partner Profit Participation Distributions of twenty percent (20%) of the Partnership's net profit to the General Partner may create an incentive for the General Partner to cause the Partnership to make investments that are riskier or more speculative than would be the case if this special distribution were not made. Absence of Operating History. The Partnership and the General Partner are in the process of being formed, and neither the Partnership nor the General Partner has an operating history of making real estate investments upon which prospective investors may base an evaluation of the likely performance of the Partnership. Projections. Projected operating results of a property in which the Partnership invests normally will be based on the best information available at that time. In all cases, projections are only estimates of future results, which are based upon assumptions made at the time the projections are developed. There can be no assurance that the results set forth in the projections will be attained, and actual results may be significantly different from the projections. Also, general economic factors, which are not predictable, can have a material impact on the reliability of projections. Need For Follow-On Investments. Following its initial investment in a given portfolio property, the Partnership may decide to provide additional funds to such property. There is no assurance that the Partnership will make

21

The Partnership Agreement has been drafted to conform substantially with IRS regulations describing partnership allocations which will be treated as having “substantial economic effect”, and hence respected for tax purposes. However, those regulations are extremely complex and it is not certain that all the allocations of income, gain, deduction and loss for tax purposes made pursuant to the Partnership Agreement will be respected by the IRS if reviewed. Nevertheless, even if the IRS were to review the partnership allocation and determined that they do not technically comply with the regulations, any modifications proposed should have little effect because it would be “determined in accordance with each partner’s interest in the partnership (determined by taking into account all facts and circumstances).” The allocations under the Partnership Agreement should in most cases be substantially identical to allocations “determined in accordance with each partner’s interest in the partnership.” Under Section 67 of the Code, non-corporate taxpayers may deduct certain miscellaneous expenses (e.g. investment journals, etc) only to the extent such deductions exceed, in the aggregate, 2% of the taxpayer’s adjusted gross income. Each Partner’s share of the Management Fee and other Partnership expenses paid by the Partnership to the General Partner will be included among the miscellaneous expenses potentially subject to the 2% floor on deduction, except to the extent that a portion of the Management Fee and other Partnership expenses may be treated as passive activity deductions described in the following paragraph. However, corporate Partners (other than S corporation) and tax-exempt organization are not affected by the 2% floor (unless, in the case of a tax-exempt organization, it is not a corporation and has unrelated business taxable income from the Partnership). Section 68 of the Code separately imposes limitations on the deductibility of itemized deductions by individuals, which may also affect the ability of any Partner who is an individual to deduct his or her share of the Management Fee and other Partnership expenses. A Limited Partner who is an individual also generally will not be permitted to deduct his or her share of the Management Fee and other Partnership expenses which are treated as miscellaneous itemized deductions for purposes of calculating such individual’s alternative minimum tax liability. Non-corporate investors (and certain closely held, personal service and S corporations) are subject to the limitation on using losses from passive business activities to offset business income, salary income and portfolio income (i.e., interest, dividends, capital gains from portfolio investments, royalties, etc.). The Partnership’s distributive share of income or losses from real estate investments, and the portion of the Management Fee and other Partnership expenses allocable to the Partnership’s real estate investments, generally will be treated as passive activity income or losses. Accordingly, an investor will be subject to the passive activity loss limitation on the use of any such losses and allocable Partnership expenses, but any such income may be offset by other passive losses (such as loses from limited partnership interest in tax shelters). Other partnership income generally will be treated as portfolio income. Therefore, an investor generally will not be able to use passive activity losses to offset such portfolio income from the Partnership. Tax-Exempt Investors

28


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Investing Worldwide: Indonesia « <b>Real Estate</b> Japan – Property For <b>...</b>

Real Estate Japan Note: Fresh Property Bali is Real Estate Japan’s associate site in Indonesia advertising properties in Bali, Indonesia.

Purchasing property or a Villa in Bali is actually a simple and straightforward process. While many people are concerned about an investment in a foreign country, it does not have to be difficult, or risky. The most important thing when purchasing property on this Island Paradise is to follow the laws of Indonesia. Some individual purchasers try to circumvent the law by using the “nominee purchase scheme” and have lost their investments and others who have used it may be at risk. There are ways to do this safely, but be sure to consult with a reputable attorney or PPAT Notaris.

Hak Milik (Freehold)

If you are buying only one property there is a easy and safe way to purchase your villa. Indonesian property law is very straightforward. A foreign buyer cannot, under any circumstances, hold Freehold Title, or in Indonesia “Hak Milik”. But you can still purchase Hak Milik property. It is simply converted to Hak Pakai as outlined next.

Hak Pakai (Right to Use)

This is the safest method for foreigners to own property in Bali. The process is simple, when you buy Hak Milik property, the title is converted to “Hak Pakai”, or Right To Use. This right is for 25 years and is renewable to a total of 70 years. You can only own one property through this method. You have all the rights of freehold title…just not the name. When you sell it, it can be converted back to Hak Milik (freehold) or, you can transfer the title to another.

Right to Build (Hak Guna Bangunan or HGB)

This is the best title for larger investors purchasing more than one property or seeking to enter the tourist market in either villas or hotels. Generally the safest way to purchase property this way is through two layers of companies. The parent company should be offshore, generally Singapore. The second company would be a foreign owned investment corporation in Bali known as a PT PMA. Mortgages, loans and agreements are executed to provide financial protection.

There can be variations on this method depending on the end use of the property, for example, if a developer plans on selling the properties to individual investors.

There are also several other property ownership rights which you may encounter depending on what you are purchasing and what your needs are. They include the following:

Leasehold

This is straightforward. It is a lease for a set period of time. Generally a new lease is for a period of 20 to 50 years, payable in full in advance. The term on existing leases depend on what amount of time is left on the original lease. Leases can be renewable, depending on the agreements with the land owner. Be sure to check that it is and check the index, or what the lease extension is based on. What you want is an extension calculated on a set percentage increase over current value, or based on an independent third party appraisal.

Strata Title (Condominium or Apartment)

This title is geared specifically towards condominiums or apartments. Sometimes referred to as fractional title. It gives you the right to use the unit you purchase and a fractional interest in the common areas.

There are several other methods of ownership which relate to Indonesian’s, agricultural and other more esoteric rights to property which do not apply to foreign buyers.

Ken Gold is the principal broker at Fresh Property Bali. For more information he can be contacted at ken.s.gold@gmail.com.

Tokyo Apartments For Sale | Tokyo Apartments For Rent | Real Estate Japan


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Legal - Real-Estate-Law EzineArticles

Transfer Property to a Trust by Shahram Miri In order for a trust to be valid in California, the trust must own property. The legal term for trust property is "res" if you want to impress your dinner party guests with Latin.Grant Deed by Shahram Miri Whenever a home is transferred whether by inheritance, probate sale, trustee sale, short sale, eminent domain, etc. a deed is involved. A deed is defined as a "written instrument by which land is conveyed."Documentary Transfer Tax by Shahram Miri In a California home purchase, there is the inclusion of a fee in the transaction known as the documentary transfer tax. The deed, the document which denotes the identity of the seller and buyer, must show the amount of the documentary transfer tax due. How to Find a Cheap Conveyancing Solicitor by Tom Stanford Cheap Conveyancing Solicitors can be found all over the internet, however, before going ahead with the cheapest quote you find, read this quick guide to getting the most for your money. Competition in the conveyancing industry has lead some companies to resort to tactics such as advertising with extremely cheap legal fees, which exclude integral costs. As such those who are understandably lured in by the promise of low fees can be hit with unexpected expenses.Real Estate Attorney - Find The Best Help in Finalizing A Property Purchase Or Lease by Abraham Avotina If you think you may be in need of the help of a real estate attorney, then read on for advice on how to find one. These legal practitioners' help is important when you are performing any kind of legal estate process.The Joint Tenancy Deed Avoids Probate and Can Save You Time and Money by Mitchell Sussman The joint tenancy deed is one of the best tools to transfer real estate between spouses, partners and heirs. Its principal characteristic and its advantage over holding title as a tenant in common, is that a joint tenancy deed transfers title immediately upon the death. This is known as the right of survivorship.The Short Sale Lawyer: Why You Need One by Alfred Ardis With a lot of people still reeling from the recession, it's not a surprise that a good short sale lawyer has as much work as he wants to handle. Read more to find out why you need one.Need Help With Property Law? by Vanessa Hamm Gone are the days when a city was small enough that you'd know everyone and deals were done over a beer and a handshake. While many New Zealanders are still very trusting and we do like to keep things as casual and relaxed as we can, if you own or want to own a home or a building in the eastern upper half of the North Island, then it's a great idea to find an expert in property law in Tauranga.Forms of Ownership of Real Property by Catherine Hammond In order to understand how your real property will pass to your heirs, you need to know how it is held. Each type of ownership determines whether the property will pass outright to your heir or if it must go through probate. To determine which type of ownership your property has, you must look at your deed. At the top of your deed, after your name, it will state the type of ownership.Stopping a Foreclosure in Massachusetts by Filing a Complaint or Motion for Preliminary Injunction by Marc Rapaport The recent disclosure of inappropriate tactics on the part of banks in obtaining loans and pursuing foreclosures is good news for Massachusetts homeowners who are trying to stop a foreclosure sale. The widespread publicity gives powerful ammunition and legal arguments for homeowners who file complaints and preliminary injunction motions to stop foreclosure sales in Massachusetts courts.Electronic Signature Law in Real Estate: A Brief History by Walter H Chen Electronic signatures are well-established as valid. The rise of electronic signatures mirrors the rise of the internet as B2B and B2C commercial transactions would be impossible without the legal foundation of the validity of electronic transactions. (Although, the, say, online mortgage space wasn't doing that great for awhile.) Nevertheless, the electronic signature is just a chapter in the long history of the writing and the signature.What Was the Effect of Native Title Legislation? by David A Coleman The recognition of native title common-law raise the possibility that grants made by states and territories since 1975 over land were native title subsisted were inconsistent with the Racial Discrimination Act 1975 (Cth). The recognition also raised the possibility that grants made by the Commonwealth over land were?the title subsisted were invalid, if they constituted an acquisition in contravention of the constitutional requirement to give just terms compensation. The Commonwealth had the power to deal with such matters under its power to make laws with respect to any race for whom it is deemed necessary to make special laws.What Was the Process of Extinguishment of Native Title? by David A Coleman In one of the most controversial periods in Australian politics in the late 1990s, the government sought to extinguish large elements of the native title which was effectively granted by the common law decisions of the High Court in relation to this issue in the early 1990s. As originally enacted, the native title act did not deal with extinguishment other than to send out the consequences of validating potentially invalid legislation agreements. The operation of these provisions was confined to legislation and grants occurring after the enactment of the racial discrimination legislation.How Did Native Title Enter Into the Common Law? by David A Coleman The recognition of native title in Australia in Mabo (No 2) occurred after other common-law countries such as United States, New Zealand, and Canada had acknowledged indigenous land rights under the common law, by treaty and in the case of Canada by the Constitution. The different ways in which the law relating to indigenous land rights has developed in other common-law countries means that we do not too readily assume that the decisions from those countries are relevant to the developing Australian law of native title. As recently as 1971, in the Gove Land Rights Case, a judge in the...Real Estate Lawyer: Consider Reasons to Contact This Type of Attorney by Abraham Avotina Whether you are buying or selling a home, a real estate lawyer is usually good to have on your side. Think about the possible ways that the transaction can go wrong without the help of a legal advisor before you decide whether to use one.Benefits of Forming a Trust to Hold Title To Your Assets by Frank G Sabo Assets Held As Joint Tenants With Your Spouse Problem: At the first spouse's death the surviving spouse will receive ONLY a 50% step-up in basis AND joint tenancy fails to take advantage of the decedent's spouse's applicable exclusion amount. Solution: Form a trust and hold the asset as community property titled in both spouses' names as co-trustee of the trust. Benefits of the Solution: Full step up in basis at the first death, which means lower income tax liability.Landlord Law - Unwanted Tenants by Rebecca McLellan If you are a landlord, occasionally you may be faced with a tenant that breaches their contract. If this cannot be resolved your only option may to be to try and get rid of the tenant. The way in which you can do this is by filling out a Section 8 form.Tenants Rights and Landlord Responsibilities by Rebecca McLellan If you rent your home as a tenant then you have certain rights and responsibilities that you will need to adhere to. Your landlord will also have certain responsibilities. As a tenant, you have the right to privacy.Property Law - Neighbourhood Disputes by Rebecca McLellan Disputes between neighbours are very common and fall under the category of civil justice. The most common neighbour disputes include access to property, boundary lines, noise, parking, overhanging trees and unkempt gardens. If you are having noise issues with your neighbour the first step that you should take is to approach them and ask them if they will reduce the noise.Property Law - Freehold and Leasehold Property by Rebecca McLellan A key question when looking to buy a property is, is it a freehold or leasehold. It is very important that you are aware of the differences between the two as each will have different rights and restrictions which may affect what you can do to the property. If the property that you wish to purchase has a freehold it means that you own the exclusive rights to the property and the land in which it is situated.Conveyancing and Property Law - First Time Buyers by Rebecca McLellan In the current economic climate it is harder than ever for first time buyers to get their first foot on the property ladder. For many people, buying a home will be the biggest investment that they ever make and it can be a very complicated process with many issues that can arise and make everything a lot more difficult. It can be understandable why so many first time buyers put off purchasing a property.The Foreclosure Process In Arizona by Kevin R. Harper Foreclosure is a general term that describes the legal process that a mortgage company, aka "lender," uses to obtain ownership of a piece of real estate where it holds a security interest in that real estate. In Arizona, the legislature has enacted statutes that make this a non-judicial process, meaning the lender does not need to file anything with the court's to complete the foreclosure. This streamlines the process when compared to other states like Florida where each foreclosure requires a separate lawsuit and involves the procedural complexities that invariably accompany lawsuits.What Is Indefeasibility of Title? by David A Coleman The conclusive nature of the register confers on the registered proprietor of an interesting Torrens title an 'indefeasible' title to that interest. By this term, what is meant is that a title cannot be set aside on the ground of the defect existing in the title before the interest is registered. This principle is the foundation of a Torrens title system.What Is an Easement? by David A Coleman An easement is often defined as a right enjoyed by the owner of one parcel of land to carry out some limited activity other activity on another person's parcel of land. more fully, and easement may be defined as a right annexed to land to utilise our the land of different ownership in a particular manner not involving the taking of any part of the produce of land or any part of its oil or to prevent the owner of the other land from utilising and in particular manner. Easements fall into two basic groups.In Real Estate Law, What Is a Covenant? by David A Coleman Properly defined, a covenant is a promise made in a deed. In practice, though, and contemporary legal discourse the word is used rather more loosely to mean simply an obligation affecting landowner, regardless of the obligation is created by deed. The covenant may be positive, or it may be negative.Secure Every Timeshare Transaction With Timeshare Attorney by Ems Aleks If we are talking about timeshare attorney then more or less this group or team comprises of lawyers which are ought to give you counselling on matters regarding your timeshare transactions. On today's generation, even your closest partner cannot be trusted that much on matters of business.What Are the Elements of Torrens Title? by David A Coleman The first element of the system of Torrens title is the register. Section 31 (B) of the Real Property Act 1900 (NSW) requires the registrar general to maintain a register for the purposes of the act. The register comprises, amongst other things, folios, dealings, prescribed instruments, and records which the regulations required to be kept as part of the register.What Is the History of the Torrens Title Registration System? by David A Coleman The English law real property and conveyancing, which became part of the law of the English colonies as well, was not entirely suited to the conditions of new settlement. Indeed, it's unsuitability was immediate apparent to anyone who cared to reflect on the matter. The social and geographical conditions of the two countries were vastly different.3 Guidelines for Choosing a Defense Attorney by Frank Klosik If you are being charged with a criminal offense, it doesn't matter if it is a minor misdemeanor or a major crime, you'll need the services of a qualified Atlanta defense attorney in order to avoid serious penalties. Like most people, you probably have never even thought about hiring an attorney until now, so you're not too familiar with the process of selecting the best lawyer to represent you and your case.What Are the Rights of Borrower and Lender in Relation to a Mortgage Transaction? by David A Coleman In Australia, Real property legislation and the mortgage documents set out the rights and duties of the borrower and lender in both the legal mortgage and the equitable mortgage. The rights of the lender, under Torrens title legislation and the general law are extensive. The lender has many rights and powers even if the broad is not in default, which included the power to insure, the right to bring legal action against third parties and the power to assign the transfer of the borrower's own interest in the mortgage.[ Previous 30 | Display By Oldest | Display By Newest | Next 30 ]


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