What Is A Real Estate Holding Company?

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9 Answers

Mary Frederick Profile
Mary Frederick answered
A Holding Company is sometimes called a Parent Company, because is a conglomerate made up of many other companies. For example a TV Network owes and runs many Television stations, and other communications media outlets, from around the country. A Holding Company owns the majority of shares in other companies. Normally, a holding company does not produce services or goods, the sole reason for existence is ownership and control of many different companies. The member companies do not necessarily have any relationship or commonality between them, accept they are owned by the same holding company.

A Real Estate Holding is a company in the business of owning other companies. This company owns many real estate companies and other types of companies as well. However, the main focus of the company is the real estate industry. A real estate holding company does not go out and by private and commercial land, homes or businesses for resale as other real estate investors do.

A real estate holding company may buy and sale stock and invest in various types of companies, goods, and properties. Some real estate holding companies are also involved in the ownership of factories; hospitals; Health, accident and life insurance companies, hotels, resorts and transportation.

Dependent upon the number of shareholders within a real estate holding company, they may have to file as a holding company with the Securities and Exchange Commission. A Holding Company has expenses and operating costs, associated with an extra layer of administrators, attorneys and officials, controlling the investments of the company. However, in some cases their costs may be offset by tax breaks and relaxed state laws. Some Real Estate holding companies are located off-shore and some own companies located around the world.
Anonymous Profile
Anonymous answered
If Jomar is wrong then why haven't you guys told us what it really is instead of just insulting him.  Not very constructive.
Anonymous Profile
Anonymous answered
I own a real estate holding company and my company's mission statement/growth strategy was very similar to the description being disputed; especially in the developental phase.

Is it a text book definition of a REHoldingCo.? - NO (not by law), but its close.  The exciting part is that it explores avenues and possibilities of growth not otherwise known to the average person just starting out.
Joshua Cleaver Profile
Joshua Cleaver answered

The Holding Company may also be known as Parent Organization, because is really
a conglomerate composed of a number of other businesses.

Sruthi Krishna Profile
Sruthi Krishna answered

A real estate holding company sale stock and invest in various types of properties.

Jimmy Mathews Profile
Jimmy Mathews answered

One benefit of forming a holding company is that the holding company itself is protected from the losses. If one of their companies goes bankrupt, the holding company experiences a capital loss and a decline in net worth, but the bankrupt company’s debtors and creditors can’t pursue the holding company for remuneration.

Peeru sah Profile
Peeru sah , New Homes Vancouver WA, answered

Real estate holding company is to buy a another company for the purpose of business.It can also do investment in the form of trademark,copyrights,patents. Stocks,license and other type of assets which will value.

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