Richard Crystal Published in AFIRE Guide to U.S. Real Estate Investing
“United States Federal System”

Richard Crystal’s article, “United States Federal System,” was published in the AFIRE Guide to U.S. Real Estate Investing. Richard’s article discusses how a foreign investor acquiring real property in the United States will confront a legal and political environment different in many ways from his/her native system. In his article, Richard provides a guide to the federal system as it relates to real estate investment, operations and taxation. Richard notes how the complex structure of the U.S. Constitution and various state constitutions can adversely impact the costs and efficiency of implementing a real estate investment.

Richard explains that within the federal system, the local segment of government plays the most direct role in the development and operation of real estate. He explains, for example, how one town may restrict office development while its neighbor fosters such development to build its tax base. Since development is a local political process, a developer from another state, or even another city, who is not experienced in local matters and connected to the local establishment may face many impediments in obtaining regulatory approvals. Developers (and investors) from outside the U.S. may face even greater burdens, especially if confronted with strong local opposition to their project.

Richard concludes that the U.S. federal system creates a very intricate web of laws, regulations and authorities often overlapping and sometimes contradictory, particularly in their application to real estate investment.