What is the proper way to set up a REIT?

Question

Looking to set up a real estate investment trust, looking for guidelines, best practices and sample business plans. Thanks.

Answer 1

This takes lots of time and experience to set up such an entity. There are certain SEC, state and other federal regulations that you are required to comply with before you can get one off the ground.

You also have to know what you want to invest in apartments income residential, land and forest, warehouses, office buildings, raw land, construction, pre-construction, buy-outs or whatever you decided you decide to invest in.

Then there are the investors with the required reports, annual, quarterly as well as monthly.

You can check out the various kinds in your state by utilizing your Yahoo or Google window and typing in REIT for California (Your state)

I find that a limited partnership works just fine starting out in the real investment business and allow it to grow as you get to know the investors, what they are seeking, the type of investments you want to do.

They are not too complicated and will give you the experience you need. A limited Partnership can be done in a couple of weeks and if you get a good person that know how to do them you can form one in a week or so.

With a limited partnership each investor is responsible for his own taxes and once the project is finished the limited partnership dies.

Once you have done several of these and if you still want to do the REIT you will have experience and knowledge about the things that you personally want to accomplish with your REIT and the type you want to be involved in.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 2

This needs an attorney.

Look to existing public reits for their business plans and operating procedures.