Real Estate Club Deals: Definition, How They Work, Tax Implications, and Risks
Long reserved for family offices and institutional investors, the real estate club deal has established itself as the gateway for private wealth to large-scale real estate transactions: entire buildings, hotels, retail properties, and restructuring projects. The concept can be summed up in a single sentence: a select group of investors pools its capital to finance a specific, pre-identified transaction, in partnership with a developer who manages the project.
This guide explains what a real estate club deal is, how it is structured legally, how much it costs, how it is taxed, what returns it can generate, and what risks it entails, as well as how it differs from an SCPI. The final section shows how this co-investment model applies to the U.S. real estate market, which is precisely the model on which Landquire operates.
What is a real estate club deal?
A real estate club deal involves pooling capital from a small group of investors—usually between 10 and 40—to finance a specific real estate transaction. Unlike a diversified fund, where investors delegate everything, each participant knows exactly which asset they are investing in: the property is identified before funds are raised, the strategy is defined, and the investment horizon is set.
This pooling of resources opens up access to assets typically reserved for professionals: entire office or residential buildings, hotels, retail properties, healthcare or logistics assets, and major restructuring transactions. Most of these transactions are, in fact, negotiated off-market between professionals, away from public listings.
In essence, a club deal brings the private investor closer to a real estate investment or private equity strategy: the goal is not to purchase an existing rental income stream, but to finance value creation on a single asset, with an exit strategy in mind. It is this positioning—between investing on one’s own behalf and investing through a collective fund—that makes group investing unique.
Key takeaway: A real estate club deal brings together a small group of investors (often 10 to 40) around a single, specific asset, managed by an operator. Investors know exactly what they’re financing, why, over what time horizon, and with what strategy—this is the key difference from diversified real estate funds.
How does a real estate club deal work?
The process of a club deal follows a well-established cycle, from asset sourcing to exit.
Simplified Overview: How a Real Estate Club Deal Works
- An operator (the sponsor) identifies an asset and develops the project: acquisition price, value creation strategy, budget, and exit timeline.
- Investors subscribe to the equity or debt of a special-purpose vehicle created for the transaction.
- The vehicle acquires the asset, and the operator implements the strategy: renovation, restructuring, change of use, and rental optimization.
- Any income is either distributed during the policy term or capitalized, depending on the selected plan.
- Upon exit (sale of the asset), the principal and any capital gains are distributed among the participants.
Depending on the objective, club deals are categorized as distribution-oriented (focused on regular income), capitalization-oriented (focused on capital gains upon resale), tax-oriented (focused on tax benefits through real estate deficits or specific schemes), and operational (hotels, healthcare assets, and operated retail properties). Strategies are also categorized by risk level, ranging from core (stabilized assets, long-term leases) to value-add (renovation, value creation) and opportunistic (underutilized assets, high potential, maximum risk).
The Legal Structure and Role of the Operator
The structure is based on a legal entity created specifically for the transaction—most often an SAS or an SCI, and sometimes a regulated vehicle for institutional transactions. This choice is not insignificant: an SAS limits shareholders’ liability to their capital contributions, whereas SCI partners are liable indefinitely for the company’s debts in proportion to their shares. By subscribing, the investor becomes a partner or shareholder in this company: they receive distributed income and vote on major decisions at shareholders’ meetings. Some structures involve bonds issued by the vehicle: in this case, the investor is a creditor with a contractual coupon, taking priority over shareholders in the event of financial difficulties but without a share in capital gains.
Relationships among co-investors are governed by a partners’ agreement, which covers strategy, governance, procedures for transferring shares, exit terms, and dispute resolution. The quality of this agreement determines how well the club functions, particularly in structures where investors participate in decision-making. The operator, for its part, manages the day-to-day operations and is compensated through fees (for structuring and management) and often a performance fee that aligns its interests with those of the investors.
Club Deals and FIA Regulations: The AMF Line
Not all club deals are subject to the same regulations. A private group of investors who know one another and co-invest in a company they control is not considered collective investment. However, as soon as an entity raises capital from a number of investors to invest it according to a defined policy, in the interest of those investors, it may be classified as an AIF (alternative investment fund) under European regulations: management must then be carried out by or delegated to a management company authorized by the AMF, with the resulting obligations.
This distinction is not a mere detail: it determines the level of oversight, information, and protection afforded to investors. Moreover, classification does not depend on the commercial name of the arrangement or solely on the number of participants, but rather on the substantive criteria set forth by the regulations. And the legal framework is evolving: in June 2026, the AMF clarified the regulatory regime for managers of certain “Other AIFs,” which may be subject to simple registration rather than full authorization when assets under management remain below the regulatory thresholds (100 to 500 million euros, depending on leverage) and the investors are exclusively professional investors.
Before investing, it is therefore reasonable to ask the operator how its structure aligns with the FIA classification and which entity bears regulatory responsibility for it. A less stringent regulatory framework offers more flexibility but fewer safeguards than a regulated SCPI or OPCI.
Key takeaway: A club deal is structured around a dedicated vehicle (most often an SAS or SCI), an operator who manages the deal, and a shareholders’ agreement that governs the project’s operations. Depending on its size and marketing approach, the structure may be subject to FIA regulations and require an AMF-authorized management company—a point that should be clarified before subscribing.
How much should you invest in a real estate club deal?
Historically, the minimum investment for a club deal has been in the tens or even hundreds of thousands of euros. A threshold of 100,000 euros is common among real estate investment firms, and some institutional transactions start well above that. There’s a reason for this barrier: a group of 10 to 40 investors financing an entire building requires significant individual contributions.
This level of commitment defines the natural target audience for club deals: savvy investors, business leaders, professionals, family offices, and seasoned real estate private equity investors. However, recent platforms are making access more widespread by offering investment amounts starting at a few thousand euros—sometimes as low as 1,000 euros—by bringing together a larger number of investors for each transaction. While this format loses some of its “club” character (an exclusive circle with real influence in governance), it gains in accessibility.
Regardless of the investment, one rule remains: the capital is committed for the entire duration of the transaction, typically 3 to 7 years for a standard club deal. The amount invested must therefore be tied up for the long term without compromising the rest of the investor’s assets.
Key takeaway: Traditionally, a wealth management club deal involves tens to hundreds of thousands of euros (100,000 euros is a common threshold), while platforms that make this investment format more accessible typically involve a few thousand euros. In all cases, the capital remains tied up until the investment is exited.
Tax Treatment of Real Estate Club Deals
The tax treatment of a club deal depends entirely on the chosen legal structure and the nature of the income distributed. The rules below are current as of this date and should always be verified by a professional.
Depending on the vehicle’s structure. In an SCI subject to income tax (tax-transparent), rental income is reported on each partner’s tax return as real estate income: taxed at the marginal tax rate (TMI), plus 17.2% in social security contributions (real estate income is not affected by the 2026 increase in the CSG). In an SAS or an SCI subject to corporate income tax (IS), the company first pays corporate income tax (15% on profits up to 42,500 euros, 25% thereafter), and then the distributed dividends are subject to the single flat-rate levy of 31.4% (12.8% income tax and 18.6% social security contributions, rates in effect since January 1, 2026). Coupon payments from bond structures are also subject to the single flat-rate levy.
Investment limits. In rare cases, shares in the vehicle may be held in a PEA or a PEA-PME: the company must be an SAS or an SARL (never an SCI), and the combined contribution limit for both plans (225,000 euros) must not be exceeded. After five years, the gains are then exempt from income tax; only social security contributions (18.6% as of today) remain due. Bond investments are, by their nature, not eligible for the PEA. And eligibility is never assumed: it must be verified on a security-by-security basis, and the institution administering the plan must agree to list unlisted securities.
The IFI. Shares in a club deal are generally included in the real estate wealth tax base when the vehicle directly holds real estate assets, on a pro rata basis according to their taxable value. Affected taxpayers must account for this in their tax returns.
Club Deal and Contribution-Transfer (150-0 B ter)
Business owners often encounter club deals when making a contribution-in-kind followed by a sale. The mechanism set forth in Article 150-0 B ter of the General Tax Code (CGI) allows, under certain conditions, for the deferral of capital gains tax when a business owner contributes the shares of his or her company to a holding company prior to a sale; if the holding company sells the shares within three years of the contribution, the deferral is maintained only if it reinvests a minimum portion of the proceeds from the sale in an eligible business activity. The 2026 Finance Act has tightened the rules for sales made on or after February 21, 2026: the reinvestment threshold has been raised from 60% to 70%, the reinvestment period has been extended from two to three years, and the holding period for reinvested assets has been extended to five years.
Above all, this same reform expanded the exclusion of real estate activities from the scope of eligible reinvestment, including activities such as property flipping or build-to-sell projects, which had previously been subject to debate. A real estate club deal should therefore no longer be presumed eligible for the reinvestment quota: the distinction is technical, the tax implications are significant, and the eligibility of a specific arrangement under Article 150-0 B ter must be verified by a tax attorney before any decision is made. The portion of the sale proceeds not subject to the reinvestment requirement (30%) remains freely investable. For the international aspect, our guide to international investment taxation provides the general framework.
Key points. The tax treatment of a club deal depends on its structure: real estate income (standard marginal tax rate + 17.2%) for an SCI subject to income tax, corporate income tax, and then a flat tax rate of 31.4% for a corporation subject to corporate income tax; PEA-PME eligibility is possible in rare cases involving an SAS. The IFI may apply, and the 150-0 B ter rollover provision (quota increased to 70% in 2026) requires case-by-case validation by a tax specialist.
Returns, Risks, and How to Choose a Reliable Club Deal
Returns. Club deal transactions typically have target IRRs in the range of 8 to 12% per year, depending on the type of asset, the strategy (core, value-add, opportunistic), and the level of leverage used. Income-oriented retail club deals tend to target 5 to 7% gross annual returns; capitalization deals focus on capital appreciation upon resale. These figures are targets, not guarantees: they are based on assumptions regarding renovations, marketing, and market conditions that may not materialize. Furthermore, the IRR is highly sensitive to timing: a transaction that generates the expected capital gain but closes two years later than announced will yield an IRR significantly lower than its target. An operator’s past performance is not indicative of future results.
Returns are always evaluated net of fees. The typical cost structure of a club deal includes an upfront fee (often 2 to 5% of the amount invested), an annual management fee (1 to 2%), and, frequently, a performance fee charged by the operator once a predetermined return threshold is exceeded. This fee aligns interests, provided the threshold is realistic. Before comparing two investments, always verify what the advertised figure includes: gross or net of fees, before or after the performance fee, and with or without the effect of bank leverage.
Risks. They reflect the target return:
- Capital loss: partial or total if the project fails (construction, marketing, or a downturn in the local market). The capital is never covered by a market-based mechanism.
- Concentration: A club deal typically involves a single asset, market, or strategy. Everything hinges on the success of a single transaction, unlike a diversified fund.
- Illiquidity: Unless there is an early withdrawal clause, it is impossible to recover your investment before maturity, which is often 3 to 7 years.
- Leverage: When a transaction involves bank debt, that debt amplifies both gains and losses; a rise in interest rates or a breach of a loan covenants can halt distributions or even force a sale under unfavorable terms.
- Dependence on the operator: Performance depends almost entirely on the sponsor’s execution, sourcing, and attention to detail.
- A less protective framework: outside of FIA certification, governance and transparency are governed by the contract, not by collective management regulations.
How to choose. Five criteria form the core of the analysis: the operator’s track record (exits that have actually been completed and repaid, not just ongoing projects), alignment of interests (a sponsor who invests its own funds in the transaction), transparency of the structure and reporting, legal soundness (partnership agreement, potential guarantees such as a first-lien mortgage), and the realism of the business plan’s assumptions in light of local market prices. An operator that provides little information about its past transactions—or only highlights the successes—should raise a red flag.
Key takeaway: Club deals aim for target IRRs in the range of 8 to 12% per year, in exchange for a focus on a single asset, illiquidity lasting several years, and a strong dependence on the operator. The decision should be based on a verifiable track record, alignment of interests, and realistic assumptions—never solely on the promise of returns.
Club deal or SCPI: What are the differences?
The question comes up time and again, because both options allow you to invest in real estate without having to buy or manage the property yourself. Yet they are based on two opposing principles.
SCPIs pool assets on a large scale: dozens or hundreds of properties, thousands of shareholders, fully delegated and regulated management, and a goal of generating a steady rental income. The average distribution rate for SCPIs stood at 4.91% in 2025 (source: ASPIM, February 2026), an average that masks significant disparities. Investors do not select the assets themselves: they purchase a stake in the management of an existing portfolio, with an investment of a few hundred euros and organized—though not instant—liquidity.
A club deal involves: a specific asset, a select group of investors, active management, a defined time horizon, and a goal of capital appreciation. The transaction is completely transparent, with no diversification, a high investment threshold, and no liquidity until exit. The risk-return profile is a notch higher than that of traditional real estate investment trusts.
| Criteria | Real Estate Club Deal | SCPI |
|---|---|---|
| Pooling | A select group (often 10 to 40 investors) | Large (thousands of members) |
| Assets | A unique asset, identified prior to the fundraising round | Diversified portfolio managed by the investment management company |
| Performance Engine | Value Creation and Capital Gains on Exit | Distributed rental income |
| Estimated yield | TRI targets 8 to 12% depending on operations (not acquired) | 4.91% average payout ratio in 2025 (ASPIM) |
| Liquidity | No score until the end of the game (ages 3–7) | Limited but organized |
| Admission ticket | Tens to hundreds of thousands of euros (less via platforms) | A few hundred euros |
| Involvement | Possible governance structures (assemblies, pact) | None, delegated management |
| Regulatory Framework | Contractual, FIA depending on the arrangements | AMF-Regulated Collective Investment Management |
| Profile | Experienced investor, defined investment horizon | Long-term saver, looking for income |
Neither is “better”: an SCPI is designed to provide diversified and accessible income, while a club deal is aimed at delivering concentrated, actively managed returns. The choice depends on one’s assets, investment horizon, liquidity needs, and risk tolerance.
Key points to remember: SCPI = broad pooling, income, delegated management, low investment threshold. Club deal = selective concentration, capital gains, potential for active involvement, high investment threshold. Two solutions to two different wealth management challenges, which may complement each other within the same investment portfolio.
The Club Deal Applied to U.S. Real Estate: The Landquire Model
All of the above describes, almost to the letter, how Landquire structures its real estate transactions in the United States. Each transaction brings together a select group of savvy investors who, alongside Landquire, co-finance the acquisition and development of a specific real estate asset through a dedicated structure: a joint-venture LLC between the investors and the operator. In essence, it is a club deal applied to real estate.
The key differences from a French real estate club deal lie in the asset and the investment cycle. The asset is an undeveloped parcel of land acquired directly in the United States at a discount through direct owner sourcing; the land serves as collateral in a virtually debt-free model. Value creation does not come from construction or tenants, but rather from land appreciation: securing land rights (entitlement), rezoning, and subdivision into lots. The investment cycle for this asset class is short—24 to 36 months per transaction—with no rental management involved at any stage. Since 2021, the team has managed more than 130 land projects involving over 1,000 parcel acquisitions: this track record from past transactions is documented on our page featuring land projects already sold, and past performance is not indicative of future results.
To illustrate this structure, consider a recent deal in the San Antonio metropolitan area in Texas: 97 acres, a total fundraising amount of $3.9 million, a minimum investment of $100,000, and an 18-month time horizon. This transaction, which is ongoing as of this writing, is cited to illustrate the typical structure of a real estate club deal (investment amount, time horizon, single asset), without prejudging its outcome.
The figures presented in this video (transactions executed, amounts raised, and no capital loss on closed transactions) reflect observed past performance based on specific, non-representative cases and are not indicative of future results. This type of investment is intended for experienced investors only.
Important note: Landquire real estate is a direct investment backed by a tangible asset, structured through a joint-venture LLC under U.S. law. It is neither an SCPI nor an FIA under French law, nor is it a collective investment product regulated by the AMF. Access is restricted to sophisticated investors; the investment is illiquid during the term of each transaction and involves a risk of capital loss. This structure is of particular interest to family offices seeking U.S. real estate and to accredited investors who invest through specialized platforms.
| Criteria | French Real Estate Club Deal (Value-Add) | U.S. Real Estate Club Deal (Landquire Model) |
|---|---|---|
| Assets | Completed building (offices, residential, retail) | Undeveloped land purchased at a discount |
| Value Creation | Construction, Renovation, Rental Management | Entitlement, zoning, subdivision (no buildings) |
| Lever | Frequent Bank Debt | Virtually debt-free model, land used as collateral |
| Cycle | Ages 3 to 7 | 24 to 36 months |
| Rental Management | Often present | None (no tenant) |
| Vehicle | SAS or SCI under French law | LLC as a joint venture under U.S. law |
| Taxation | IR/IS depending on structure; IFI possible | International Taxation: A Topic to Explore with an Advisor |
| Profile | Savvy Investor | For Experienced Investors Only |
Details of the model are presented on our Landquire real estate investment page, and its geographic application is shown on the real estate pages for Texas and Florida.
Key takeaway: Landquire applies the club deal model to the U.S. real estate market: a select group of investors, a dedicated vehicle for each transaction, a single, identified asset, and a short-term investment horizon. The key structural differences are: an undervalued parcel of land rather than a building; value creation through land rights rather than construction; and a virtually debt-free model in which the land serves as collateral.
A real estate club deal brings together a small group of investors (often 10 to 40) who jointly finance a specific real estate transaction through a dedicated company managed by an operator. The asset is identified before funds are raised, the strategy and time horizon are defined in advance, and any profits are distributed upon exit, typically after 3 to 7 years.
An SCPI pools the savings of thousands of investors into a diversified portfolio of real estate, with regulated management and a focus on income (an average distribution yield of 4.91% in 2025, according to ASPIM). A club deal brings together a small group of investors to invest in a single asset, with a focus on capital appreciation, a much higher investment threshold, and no liquidity prior to exit. Diversified income on one hand, concentrated returns on the other.
Transactions typically have target IRRs in the range of 8 to 12% per year, and some capitalization transactions aim for even higher returns. These targets are contingent on the success of the transaction: delays, cost overruns, or market downturns can reduce, eliminate, or even turn a profit into a loss. No return is guaranteed in advance, and past performance is not indicative of future results.
Traditionally, investments range from several tens of thousands to several hundred thousand euros; a threshold of 100,000 euros is common among wealth management firms. Newer platforms offer investment amounts of a few thousand euros, thereby broadening the pool of investors. In any case, the funds must be able to remain tied up for the entire duration of the investment.
The main risks include capital loss (partial or total), concentration on a single asset and market, illiquidity until the transaction matures, dependence on the quality of the operator, and a regulatory framework that offers less protection than that of regulated funds when the structure does not involve collective management.
Not necessarily. A private group of investors who control their own company is generally not considered an AIF. However, as soon as an entity raises capital from multiple investors to invest it in accordance with a policy defined in their best interests, it may qualify as an AIF: in that case, management must be entrusted to an AMF-authorized management company. The situation must be assessed on a case-by-case basis, and the operator must be able to justify it.
Five criteria: a track record of transactions that have actually been closed and repaid; an operator that invests its own funds in the transaction; transparent reporting, even in the event of difficulties; a partners’ agreement and solid guarantees (a first-lien mortgage, if applicable); and business plan assumptions consistent with local market prices.
Rarely, and only after approval. The tax deferral under Article 150-0 B ter requires that a minimum portion of the proceeds from the sale (70% since the 2026 Finance Act) be reinvested in an eligible economic activity within three years, with a five-year holding period. However, the 2026 reform expressly expanded the exclusion to include real estate activities, including property flipping: a real estate club deal is no longer presumed to be eligible. Consultation with a tax attorney is essential, as the remaining 30% can be invested without restriction.
About the Author
Thibaut Guéant is the co-founder of LandQuire, a U.S. company specializing in high-yield real estate investment. A French entrepreneur who has been based in Miami for more than 10 years, he has raised more than $40 million since 2021 and led more than 130 real estate transactions across the United States.
For more information: our Landquire real estate investment page, the page dedicated to family offices, and the international taxation section.
The information in this article is provided for educational purposes only and does not constitute investment advice or a personalized recommendation. All investments involve a risk of capital loss. Past performance is not indicative of future results. Before making any decision, it is recommended that you consult your usual advisors (financial, tax, legal), particularly regarding capital contribution and transfer arrangements.
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Landquire is a company that assists French-speaking investors in acquiring and developing land in the United States, across several U.S. states, over a short cycle of 24 to 36 months, without rental management. The model is based on a club deal-style co-investment with Landquire through a dedicated structure.
- Co-investment backed by a real asset (the land serves as collateral)
- Short-term lease (24 to 36 months), without rental management
- Documented track record of projects sold
- Off-market, available to experienced investors
View current land opportunities View projects that have already been sold Contact the Landquire team