How Do I Become a Property Fund Manager?

Many people I talk to say that they don't like it when their super fund invests in stocks because stocks are risky. They prefer to be invested in residential real estate because Australian property always goes up and is risk free.

I know that it is possible to invest in residential real estate using a self-managed super fund but for the average person this is too complicated.

Because there is so much pent-up demand for a managed fund that invests in Australian residential real estate, I am thinking of becoming a fund manager and investing all investors' money into Australian residential real estate. Everyone will want to put money into the fund.

Any tips on how I can become a fund manager?
 
Many people I talk to say that they don't like it when their super fund invests in stocks because stocks are risky. They prefer to be invested in residential real estate because Australian property always goes up and is risk free.

I know that it is possible to invest in residential real estate using a self-managed super fund but for the average person this is too complicated.

Because there is so much pent-up demand for a managed fund that invests in Australian residential real estate, I am thinking of becoming a fund manager and investing all investors' money into Australian residential real estate. Everyone will want to put money into the fund.

Any tips on how I can become a fund manager?

It's been done before. A few years ago, one of the big fund managers (can't remember which one) set up a residential property fund. It was in 2003 or 2004. The timing wasn't perfect.

Be prepared to learn about heaps of legislation & regulation. The fund management industry is highly regulated.

Cheers,
 
They prefer to be invested in residential real estate because Australian property always goes up and is risk free.

If this is the knowledge/attitude that your prospective clients are to possess, you are setting yourself up for a lot of pain.
Australian residential real estate does not always go up and is not risk free.

Boods
 
Any tips on how I can become a fund manager?

After setting up the fund, you need to issue a prospectus.

One of the key things with a Resi Prop trust is that you don't have the cashflow of a Comm Prop Trust - meaning you are relying on CG. You investors will most likey need to be "in for the longhaul".

You will most likely not be able to gear as much as in your own name - 60% LVR is going to be lilkely. This might mean the return may not be crash hot.

The lquidity of your fund can be quite limited (as you won't ave cash).

FYI, there is a residential prop trust listed on the NSX - you can see their reports to see how they are run etc.

Cheers,

The Y-man
 
Many people I talk to say that they don't like it when their super fund invests in stocks because stocks are risky. They prefer to be invested in residential real estate because Australian property always goes up and is risk free.

I know that it is possible to invest in residential real estate using a self-managed super fund but for the average person this is too complicated.

Because there is so much pent-up demand for a managed fund that invests in Australian residential real estate, I am thinking of becoming a fund manager and investing all investors' money into Australian residential real estate. Everyone will want to put money into the fund.

Any tips on how I can become a fund manager?

Navra is about to launch a property fund that will invest in residential property. Perhaps, you could have a chat with Steve and he can put you on the right direction.
 
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Depending on the amount of members and what your planning you may need an AFS (Australian Financial Services) license.

Tips?
Buy a whole stack of property, put in a few years of audited returns.
Issue a prospectus.
Unit trust seems the preferred structure.

agent007 I am not allowed to comment on that persons's biz due to apparent threat of legal action to SS. And it seems I can't even express my opinion on that person's biz or public results for the same "legal action" reasons.
So you can make up your own mind about such a person and their opposition to face any public scrutiny or discussions, even though they must publish public results & reports.
 
You will need a AFSL, very hard to get and currently being reviewed.
What are your qualifications to run a Fund?
Why should people invest with you?
Most people can go buy a Residential Property anway and get significant tax benefits so whats so compelling about your fund?

Honestly being from this industry is you wont get it up and started unless you are a player. Also the cash flows would be ordinary and i assume you will be taking an MER of about 1-1.5%?

Theres a managed fund at the moment with Land in Point Cook. Set up well i feel. Its got a 10 year life. Distributions paid as return of capital.
 
hi
the simple answer to your question is you don't.
can you become a funds manager answer yes
can you be afunds manager with your idea
answer no
if you have enough cash you can buy out a couple of funds managers and you can buy for under 5 mil
and convert to your resi fund
would it make money
no
is it any point
no
a fund needs to make money or be aimed to have growth.
neither is going to occur with a resi fund.
if you went with a construction fund now your talking
a vulture fund I'm all ears
a fund to buy first mortgage position yep I am here
even a fund to do mezz funding
yep alot of ears in that market
a fund to buy into resi at 5% give me a break
why is no one doing it
simple there is no money for the fund manager
forget about the asfl
because if you do get one you will drop this idea with the first 15 mins of the first lesson.

the smsf market is a very different and its not investing in resi
its setting up a form of investing for the future and thats a bit different.
and it similar to fund management but is hell of alot more specialist
and you do need to understand how the market moves to make money.
 
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