2006-06-21 02:44:44 · 4 answers · asked by Patrick M 1 in Business & Finance ➔ Renting & Real Estate
You need an experience lawyer, accountant, fund manager, brokerage firm and probably a good property management firm.
Investing in one is probably easier. Visit http://www.investopedia.com/terms/r/reit.asp or www.reitnet.com
If you are simply looking to put together a partnership of some sort to buy real estate and not seek a public offering most states limit you between 5 and 20 investors before having to file SEC paperwork. Each state is different and maybe as simple as a one page report. Some states also want allow you to advertise for investors until you either have an interest in a piece of property or you are a licensed loan originator/mortgage broker.
I know one gentleman who specializes in doing those kinds of deals. When he finds a property he wants to invest in, he offers either 10% return if the investor wants a monthly payment or 15% if they would waive monthly payments and wait till the property is rehabed and sold for a profit. Most choose the 15% and in essense he has all his funds with no monthly payments. Most of his investors are retirees with $20-30K to invest and want higher returns than a CD or moneymarket account. If they aren't of retirement age, one can still use retirement funds but they would have to open a self directed fund that specialize in real estate and/or business investment services like Guidant financial.
Of course, you have to know your business. It's very profitable if you do.
2006-06-21 03:04:42 · answer #1 · answered by Sam B 4 · 0⤊ 0⤋
Forming and Operating a Real Estate Investment Trust
2006-06-21 02:48:35 · answer #2 · answered by dafreek7 2 · 0⤊ 0⤋
Contact the Securities and Exchange Commission for good information. Other rules apply for limited partnerships.
2006-06-21 19:05:02 · answer #3 · answered by kearneyconsulting 6 · 0⤊ 0⤋
in SC, you must have 100+ members...
2006-06-21 07:36:05 · answer #4 · answered by thetoothfairyiscreepy 4 · 0⤊ 0⤋