Hello,
I would like to aquire some retail strip shopping plazas with a group of investors. What is the best way to structure the entity that will purchase the plaza? I plan to have multiple investors with varied amounts of capital per investor. What is the best way to structure their return on investment ect?..
Any info would be greatly appreciated.
I do it where the amount of the purchase price and the %of amount invested by each investor=the amount of %returned.
EX. Investor invest 20% of the purchase, investor gets %20 of the profits.
I would own the property through an S corporation. It is a pass-through entity just like an LLC however because owners are shareholders it easier to determine who gets what based on the numbers of shares they have. Example: you raise $100,000 and the S corp has 1000 shares. You put in $15,000 get 150 shares and 15% of the profits. Also it is much easier to divest a partner than a LLC should someone want out.