Real estate investment vehicle: effectively structure your real estate projects

If you are thinking about the best way to organize your first real estate project or to optimize existing assets, you will inevitably hear about real estate investment vehicle.

This is a specific category of investment vehicle, designed to structure, protect and make your operations profitable in stone (in particular as part of a Club Deal, a collective investment solution that is increasingly used).

In this guide, we explain to you in concrete terms how these structures work, why they are useful, and especially how to choose the one that best suits you.

What is a real estate investment vehicle?

One real estate investment vehicle is a legal or financial structure created specifically to carry out one or more real estate projects.

It acts as an intermediary between investors and real estate assets, allowing transactions to be structured more efficiently and adapted to a wealth or entrepreneurial strategy. The main role of this vehicle is to centralize capital, organize the holding of assets and facilitate the management and transmission of real estate assets.

Unlike an investment in Proper name, where the purchaser buys and manages a property directly in his name, the use of an investment vehicle makes it possible to separate personal assets from real estate activity. This offers better legal readability, possible fiscal optimization, and an ability to organize relationships between partners, investors or heirs.

Les advantages of such a structure are numerous:

• First of all, the pooling of resources allows several investors to group together to access large-scale projects or more diverse, often inaccessible alone.
• Then, these vehicles often give access to a professional management, whether through a management company, a manager or a dedicated structure.
• Finally, they allow tailor-made structuring according to the objectives: additional income, asset building, fiscal leverage, or even facilitated transmission.

The main types of real estate investment vehicles

There are several forms of real estate investment vehicles, each meeting specific objectives: transmission, return, taxation, or collective management. Here are the main devices used to effectively structure a real estate project.

The SCI (Société Civile Immobilière)

Is one of the most well known vehicles. It is distinguished by its great flexibility of management and its simplicity of implementation. It is particularly suitable for family projects, such as the purchase and management of a property with several heirs or relatives. It makes it possible to freely define the operating rules in the articles of association and to optimize the transmission of assets thanks to the mechanism of division of shares.

The SCPI (Société Civile de Placement Immobilier)

For those who want to invest in real estate without managing the property themselves. This real estate investment vehicle allows many savers to pool their funds to invest collectively in a diversified portfolio of real estate, generally for professional purposes. Management is fully delegated to an approved management company.

The OPCI (Real Estate Collective Investment Organization)

Is a hybrid vehicle that combines physical real estate investment and financial assets. This type of structure offers wider diversification and better liquidity than the SCPI, thanks to a share of assets listed on the stock exchange. It is suitable for investor profiles looking for a flexible solution, while maintaining significant exposure to real estate.

Good to know: SCPIs and OPCIs are investments supervised by theAMF, guaranteeing a certain level of transparency and regulation for retail investors.

The SIIC (Listed Real Estate Investment Company)

Is a real estate company listed on the stock exchange, subject to a specific tax regime. It makes it possible to invest in tertiary real estate (offices, shops, logistics, etc.) through the purchase of listed shares. This vehicle is characterized by strong fiscal transparency and increased liquidity, but it is generally aimed at more sophisticated investors.

The family SARL

Is a variant of the classic SARL, allowing members of the same family to hold real estate together. It is often used for furnished rental projects, because it allows you to opt for the industrial and commercial benefits regime (BIC), which is often more fiscally advantageous than property income.

The SAS or SASU (unipersonal form)

Offers legal flexibility that is very much appreciated in property dealer transactions or complex arrangements. It allows a great deal of freedom in the drafting of statutes and is well suited to entrepreneurial structures or projects requiring flexible and evolving governance.

Advantages and disadvantages of real estate investment vehicles

Use a real estate investment vehicle to structure a project can offer real benefits, but these structures also have certain limitations that it is essential to fully understand before starting.

Some of the main advantages include:

One better accessibility to real estate investment. Thanks to the pooling of capital, an investor can integrate an ambitious project with a lower entry ticket than with direct investment. This is particularly the case with SCPIs or OPCIs, but also via solutions such as Club Deal Real Estate, which make it possible to invest collectively in targeted assets.

These vehicles also facilitate a diversification of the real estate portfolio, by making it possible to invest in various types of property (offices, shops, businesses, homes, warehouses, etc.) located in several geographical areas, thus reducing the overall risk.

Another major advantage: the professional management. In the majority of cases, property management is provided by experts, freeing the investor from administrative, rental or technical constraints. This makes it possible to focus on wealth strategy, without getting involved in daily operational life.

In addition, these structures often offer tax benefits specific, such as taxation under the BIC regime for furnished rentals via a family SARL, or even the corporate tax exemption for SIICs under certain conditions.

However, these vehicles also have inconveniences.

The first often concerns the lack of liquidity: in an SCI or SCPI, the resale of shares is not always immediate, and may require the agreement of other partners or depend on the secondary market.

In addition, the management fees can be significant, especially in structures managed by professional management companies, which can reduce net profitability.

Finally, the legal complexity of certain arrangements require specialized support: drafting the statutes, choosing the tax regime, complying with accounting obligations... These elements often involve recourse to a notary, a lawyer or a chartered accountant.

How do you choose the right real estate investment vehicle?

If you are considering investing in real estate, you may have already asked yourself this question: What structure should you use to carry out your project? The choice of real estate investment vehicle is a crucial step. It can save you time, optimize your taxation, facilitate management... or on the contrary, complicate things if the arrangement is not adapted to your needs.

Criterion 1: everything depends first of all on your personal goals.

Are you looking to generate a regular income, to reduce your taxes, or at prepare for the transmission of your assets to your children? Each vehicle responds to different logics. For example:

• An SCI is ideal for managing a property with several people in a family setting,
• While a family SARL makes it possible to optimize furnished rentals.
• And if you prefer an investment without constraints, SCPIs allow you to invest in real estate without having to manage anything.

Criterion 2: your investor profile

You are a particular Who is starting or do you already have several assets under your belt? Are you investing alone or with partners? One real estate professional or a property dealer will not choose the same structures as an saver simply wishing to secure his capital.

For example, an SAS is often used in entrepreneurial projects, with a great deal of statutory freedom and flexible management. And for the most experienced profiles wishing to structure a real collective vehicle, it is also possible to create a real estate investment fund.

Criterion 3: your investment horizon and risk tolerance

How long are you ready to tie up your money for? Some vehicles offer more than liquidity than others.

For example, reselling SCPI shares can take time. Conversely, a structure such as SAS or SARL sometimes makes it possible to exit more quickly... provided you have written the articles of association well at the beginning.

Don't underestimate the importance of being yourself accompanied by professionals. Real estate law, taxation, accounting: all this can quickly become complex. A chartered accountant, a notary or a wealth management advisor can help you avoid pitfalls and, above all, to choose the real estate investment vehicle that fits your project and your reality.

Overlord's support in structuring your real estate investment vehicle

Chez Overlord, we help you structure your real estate project with precision. It all starts with a custom analysis of the project and your objectives: yield, taxation, transfer... We then guide you towards most suitable legal structure to your profile, whether it is an SCI, a family SARL or a SAS.

We put you in touch with our network of specialized partners (notaries, accountants, management companies) to secure each stage. And because good support does not end with the creation of the structure, we remain at your side for a monitored throughout the project.

With Overlord, you move forward with peace of mind in your real estate investment strategy.

FAQ — Frequently asked questions

What is a real estate investment vehicle?

It is a legal or financial structure used to carry out a real estate project. It makes it possible to organize the ownership, management and taxation of the property (s).

What are the advantages of an SCPI compared to an SCI?

The SCPI makes it possible to invest collectively without managing assets, with great diversification. SCI, on the other hand, is more flexible and adapted to family projects, but requires active management.

How does a SIIC work?

One SIIC (Société d'Investissement Immobilier Quoté) is a real estate company listed on the stock exchange, specializing in rental real estate (offices, shops, residences...). She receives rent and must redistribute at least 95% of rental income and 60% of capital gains to its shareholders to benefit from a corporate tax exemption. Investors buy SIIC shares just like any stock on the stock market, allowing them to access real estate in a liquid and transparent manner.

What are the criteria for choosing between an IR SCI and an IS SCI?

La SCI to the IR (income tax) is simple to manage: property income is taxed directly in the hands of the partners, according to their tax bracket. It is suitable if you are looking for flexible management and immediate income, especially for a long time without high profitability.

La SCI at the IS (corporate tax) allowsamortize the property, therefore to significantly reduce the taxable profit. This is often more beneficial for projects with high profitability or highly taxed investors. On the other hand, resale taxation is heavier, because the capital gain is calculated on a net basis, without allowances.

Can you invest in a real estate investment vehicle via life insurance?

Yes, some SCPIs or OPCIs are available in units of account in life insurance contracts. This makes it possible to combine real estate yield and advantageous taxation.

You will have understood it: properly structure a real estate project with a real estate investment vehicle is not reserved for professionals or experts. It is an accessible tool that can really make a difference, whether you want to invest alone, with a family, or with several people.

By choosing the right structure, you can optimize your taxation, secure the management of your assets, and facilitate transmission. But it is still necessary to be well advised.

If you are planning to start, or if you already have a project in mind, Overlord is there to support you. We help you understand your options, make the right choices, and move forward with confidence.

Do you need to structure your real estate investment? Let's talk about it together: Make an appointment with our experts. With Overlord, you are never alone in making your decisions.

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