You are for the most part locking in for at least 6 or 7 years, sometimes longer. Read the fund details carefully, however most are geared for GV investors and realize you don’t want your money locked in for eternity. That said, I have seen some who keep it for 10 years.
In terms of ability to sell, there is a possibility with most of the funds IF you can find a buyer, which I think would be difficult in most cases since anyone buying in would probably not then have the duration to qualify for a GV. My attitude on this is that the goal is to get permanent residency or citizenship. I hope I make money but would just like to break even. If you are worried about losses, you have to think about what residency/citizenship is worth for you? If a fund lost $100k, would that be worth it for you to obtain the residency? For me, it would be (but I hope I don’t have to test that theory!).
Some have offered annual distributions, but plan on your money being locked up. If you’re new to this, I’d do some homework (I did) on these types of funds and what they’re investing in. Research what the markets, potential competition looks like, and impact of changes to the visa program are to real estate to some of these funds. I’d never invested in vehicles like these before, but familiarize yourself with terms like IRR, MOIC, PFIC, and FATCA. Assuming you’re a US citizen, talk to your accountant about the implication of the latter two.
My goals for this adventure are 1: Visas for me an my family, 2: capital preservation, 3: capital gains. Would losing 2 and 3 suck, yes. . . but we would have visas and probably passports. 1+2 and maybe 3 means being even more comfortable in another place.
I think everyone here are fairly creative thinkers. We think outside the box and this is why we’re on this site compiling this information. Do your due diligence and weigh your risks!
Thank you for the insight. I dont mind locking up the funds for several years, but I guess the timing of the fund would have to align with the timing of the permanent citizenship approval. However, my biggest concern would be trying to back out of the fund if the initial visa application is denied.
Hi KA
All of this has been hashed out here multiple times so check the previous posts.
As for your concern, your best option would be to find a company that offers guaranteed buy-back. Those also have been discussed here already.
I add also that if you are thinking of investing hours and hours of time to apply for a GV and 350k Euros into this, then it is worth it to set aside a few hours to read the main 3-4 threads in their entirety before asking questions. I would venture to say that most or all questions have already been answered.
A lot of people here are willing to help but probably not so much if you ask a question without even bothering to read the existing threads.
You can hire a company to handle everything for you but you are at their mercy and from my experience they may not always have your best interest in mind. If you are so wealthy that you don’t care, you should look at Cyprus or Malta citizenship instead. Otherwise, do your research and you should be ok.
You might look at the Mercan real estate projects since they offer buy back options if the visa is denied.
various discussion far back up-thread.
I did, and chose to go with Iberis Capital and their GreyTech II fund. I found Iberis to the most competent fund managers I’ve come across in this space, and their general investment thesis resonated. I also liked that they are first and foremost a PE company with deep PE experience. Their GreyTech II fund had reasonable fees, and while is a bit higher on the risk/reward, I’m ok with that. I’d recommend reaching out to them on their website. They were very responsive and easy to work with.
Brand new to the string and this process. So glad to have found you all! Can anyone rattle off the top 3 funds they decided between so I can cut this work down? I have a list of 15 (!) but would love some guidance right off the bat of ones to look at and ones to avoid.
Dear all - does anyone have a contact at Millenium BCP Bank?
Also, I understand that I can open an account without having to visit Portugal by relying on a PoA to my ottorney only through Bison Bank and Millenium BCP Bank. But would be grateful if anyone knows of any other bank where this is also possible.
Karly,
You are trying to simplify a process that has so far consumed 520 posts on this thread without a clear answer. It is because there is no clear answer. Having said that, reading the posts themselves will give you a lot of information to apply to various funds. Keep in mind that there have popped up many new funds in the last month with which some people here have no familiarity.
Unfortunately, you do have to do the work. I met with numerous funds before deciding on who to go with. It is worth the legwork because you learn a lot in the process. Review the message string and you can see who are the key players. There are differences between them around the focus of their investment and overall strategy.
Larry,
What happenned finally for you?
I’m keen to know.
Jehan
Hi Jeff, Do you happen to have the Greytech II presentation and MR on you? Many thanks in advance. Jayanth.
Thank you all for your insights, comments, and exceptional discourse on this topic. I have done much reading and synthesizing. One fund I haven’t seen much discussed is MEDCAPITAL. Might any of you have any preliminary thoughts about c2 Capital Partners and this latest offering? Just received their prospectus and sought for a call with someone on their team.
Thank you in advance.
Hi Larry, I couldn’t find any completed successful projects by Mercan in PT. Any examples you can point to? Thanks.
None of the investments are without risk. Choose the option that is right for you. I decided to invest in a fund that invests in residential real estate because I felt it was the right choice for me.
Thanks, Michael for the summary. I too believe that there is no option without risk and one needs to chose what is best for him or her. I might also go for a fund that is investing in residential real estate
Tried replying to this last week so not sure if you’ve talked to them yet. I’ve met with the team on this fund a few times. It’s a very interesting fund. We were looking at the “safer” real estate route, but the nature of this one has drawn us over to look at it further.