I am looking at starting an investment group and I keep finding groups who focus on stocks and mutual funds, but I am interested in real estate also. Is it legal for investment clubs/groups to purchase real estate? Also, what type of paperwork must be filed to operate such an entity (Looking at LLC framework), is there a comprehensive informational resource available that fits my needs?
2006-09-28 05:51:53 · 5 answers · asked by Greg Red 1 in Business & Finance ➔ Investing
Yes
2006-09-28 06:09:33 · answer #1 · answered by Anonymous · 0⤊ 1⤋
I started an investment club and then everyone started talking about investing in real estate too.
1) A partnership is the easiest way to form an investment club. You only need an LLC or a corp to provide a corporate veil that will hold all liability. Doing more than a partnership for an investment club isnt really necessary. All you have to do is write up an agreement, everybody sign it, and you have a partnership. get an fein and Register it with your state.
2) a partnership is a BAD for real estate investing.
3)The IRS has an explanation of what investment clubs can do (www.irs.gov). I think it says you can only invest in securities, but I could be wrong.
4) www.chickslayingnesteggs.com is the best site to get started with your investment club.
2006-09-28 06:24:27 · answer #2 · answered by cashmaker81 6 · 0⤊ 0⤋
Yes, an investment group can purchase real estate. This can be done through the formation of an LLC or Partnership. It is a straight forward process which can be facilitated by a real estate attorney.
Commercial real estate is by nature more complex and would require a more specialized attorney but either way it is frequently done.
2006-09-28 06:00:30 · answer #3 · answered by Miles F 1 · 0⤊ 0⤋
For the long term, not something beats shares. traditionally actual belongings slightly covers inflation over the long term. there have been short classes over the final 30 years or so of surprisingly extreme actual belongings value inflation yet over the long haul actual belongings in many situations isn't a great investment till you're heavily leveraging your investment with credit. that's risky because of the fact if the industry tanks, you're on the hook for the stability of the loans. Mutual money are distinctly touted as a reasonably risk-free investment motor vehicle with doubtlessly extreme costs of return and which may well be genuine in case you pick for intently. There could be significant detrimental tax implications in case you positioned funds right into a fund concern to extreme churn costs because of the fact the capital advantageous properties are handed directly to you even in spite of the indisputable fact which you don't get the money to pay them till you withdraw them from the fund. which could wipe out significant parts of the income and consequently the income to a mutual fund. the main suitable long-term approach is a careful mix of shares and bonds, bought outdoors of a mutual fund, and held for the long haul. That way YOU administration any capital advantageous properties and are not concern to the whimsy of a fund supervisor chasing rainbows. for sure, this additionally takes the main artwork as you may study all of the agencies which you will positioned funds into. Warren Buffett, CEO of Berkshire Hathaway, has amassed the 2d greatest fortune interior the international with a reasonably undemanding approach: lacking any corporation preparation to the alternative, purchase whilst everybody else is merchandising and sell whilst everybody else is figuring out to purchase. Then, hang onto your investments for the long term till there is best corporation preparation that shows you may unload a inventory.
2016-10-01 11:22:53 · answer #4 · answered by Erika 4 · 0⤊ 0⤋
anyone can purchase real estates.
2006-09-29 01:15:07 · answer #5 · answered by Anonymous · 0⤊ 0⤋