<--Back to Wiki Home

Define Business Trust in Real Estate

Business Trust: 

A "Business Trust" is when a group of people pool their money together to invest in a big project, like buying a building or a piece of land. Each person in the group owns a part of the project, and they share the profits or losses. This is also related to "syndication," which means organizing the group and the investment.

Example: 

For example, let's say you and your friends want to buy an apartment building. You all put your money together and create a Business Trust. Each of you owns a part of the building, and when you make money from renting the apartments, you all share the profits.

"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"

When friends come together with money to share,
A Business Trust forms, with goals they declare.
Pooling their cash for a project so grand,
Like buying a building or a piece of land.

They each own a part of the project, you see,
Sharing the profits, as happy as can be.
A syndicate working together as one,
A Business Trust makes investing quite fun!