Capital Investment
Capital investment in real estate involves pooling funds from multiple investors to purchase properties for the purpose of generating income and/or appreciation. This can range from individual investors pooling their resources to institutional investors forming real estate investment trusts (REITs) or other investment vehicles.
In Virginia, the Securities Act (§ 13.1-501 et seq.) regulates the offer and sale of securities, which can include interests in real estate investment opportunities. If investors are pooling their resources to invest in real estate, they must comply with the state and federal securities laws, including registering the offering or qualifying for an exemption from registration.
The Securities and Exchange Commission (SEC) also regulates the offer and sale of securities at the federal level through the Securities Act of 1933 and the Securities Exchange Act of 1934. Any offering of securities, including those related to real estate investments, must comply with these federal laws.
Real estate investment syndications and offerings typically involve complex legal and regulatory considerations. It’s essential for anyone involved in capital investment in real estate in Virginia to consult with legal and financial professionals familiar with securities laws to ensure compliance with all applicable regulations.