In this case, the manager of the fund of funds would get compensated from their own syndicate.California does have a couple of exceptions to this for CA real estate brokers or CA registered "finders" but the transaction must be in California to qualify along with some other limitations.The risks of being compensated for referring investors to a deal without a securities broker-dealer's license are this: 1) The syndicate that pays an unlicensed broker may put their own exemption at risk, and 2) The unlicensed broker who accepts an unlawful commission may remain liable for the investment, or be subject to regulatory action by the SEC or a state securities agency.

My brother who is a Australian Citizen wants to invest in US Real estate.Any regulatory etc requirements or any other items that anyone can direct me to for non US Resident investors in Real Estate.Thank you Sam

Do you have any regulatory background?

The Fed's desire to stop the currency outflow has prompted the imposition of massive regulatory compliance requirements for overseas banks who work with Americans.

We did with the thought that getting regulatory approval would be easier than tearing down and building new.  

TILA-RESPA Integrated Disclosurehttp://www.consumerfinance.gov/regulatory-implemen...

There is a chance that CA aggressive regulatory environment will severely hamper these activities.  

I agree it seems similar to a small scale fund or REIT but with a few key differences that might alleviate the SEC filing requirements and some of the other regulatory complications.

The unintended consequence of this definitional change, is that should this provision be allowed to cycle into law, the lenders making these loans would cease to do so, because these loans cannot be made at traditional mortgage rates without losing money, and no lender currently lending on manufactured housing is willing to take the regulatory risks associated with “high cost mortgage loans”.The simple fact is that a $25,000.00 loan cannot be regulated in the same manner as a $250,000.00 loan because while the cost of origination and service are the same, the costs when considered as a percentage of the loan amount are significantly different.

I would be surprised if Michigan doesn't have a state regulatory agency that oversees activity of property managers.