Inventors:
Neal Roberts - Santa Monica CA, US
Michael Franklin - Carlsbad CA, US
Charles Runnels - Scottsdale AZ, US
James Andrews - Los Angeles CA, US
Assignee:
American Master Lease, L.L.C. - Los Angeles CA
International Classification:
G06Q 40/00
Abstract:
Methods and investment instruments for investing in real estate are described wherein a portfolio of investment real estate is divided into a plurality of tenant-in-common deeds of predetermined denominations, and which are subject to a master agreement and master lease to form “deedshares. ” Holders of the deedshares receive a guaranteed income stream from the master lease and yearly depreciation, without having to maintain or manage the real estate. The holders of deedshares are subject, under the master agreement, to a mechanism that enables the master tenant to purchase, or arrange for the purchase of the deedshares at fair market value (or some other calculable value) at the end of a specified term. Because the deedshares qualify as interests in investment real estate, they are eligible for tax-deferred treatment under 1031 of the Internal Revenue Code.