Special Purpose Entity (SPE)

Special purpose entity is a legal entity established by the sponsor or borrowing entity whose operations are limited to the acquisition and financing of specific assets. An SPE is a bankruptcy remote entity which serves to insulate the lender and beneficiaries of a trust from bankruptcy proceeds should the underlying real estate become involved in bankruptcy proceedings. For instance, Delaware Statutory Trusts (DSTs) are structured as SPEs and should the underlying investment fail and the property entered into bankruptcy, such legal action would be isolated to the property-holding entity and legal action would not extend against the beneficiaries.

Another Way To Own Investment Properties

Download our guide to real estate investing Seek an Upgraded Real Estate Portfolio
Download eBook


Download our guide to real estate investing

Another Way To Own Investment Properties

Learn new ways to use real estate to pursue your wealth goals.

By providing your email and phone number, you are opting to receive communications from Realized. If you receive a text message and choose to stop receiving further messages, reply STOP to immediately unsubscribe. Msg & Data rates may apply. To manage receiving emails from Realized visit the Manage Preferences link in any email received.