Fri, Jul 03, 2009
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REIT Alternative |
sfreinvestor
11 Posts
Member Since: 04/03/2008
San Francisco, CA
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Posted: 20:09 on 07-17-2008
I am a little confused about the securities laws concerning soliciting investors.
I know potential investors, however, we don't want to start a REIT. We are forming a real estate investment company to get private investors into deals that we have. We are not raising dollars as much as we are making selective properties available to investors and structuring the deals. 2-4 large deals a year.
Are we going to run afoul of securities laws? What type of organizational structure would this be? Can this be treated as a startup with Venture funding as an option?
All the people in this firm are well known in the area and also with years of experience doing commercial real estate.
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cjmazur
4284 Posts
Member Since: 07/23/2003
Cupertino, CA
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Posted: 14:23 on 07-18-2008
VC funding still has to be aware of the securities. You have to be an accredited investor and have a bust of paper work to fill out.
"selective properties available to investors and structuring the deals."
I think this could be a key loophole. Talk to a lawyer. Depending on what role you do or don't play, you may just be a RE broker.
BTY, by forming a REIT your still have to deal w/ securities laws.
[ Edited by cjmazur on Date 07/18/2008 ]
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omicron3000
116 Posts
Member Since: 08/18/2007
Abington, PA
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Posted: 15:07 on 07-19-2008
It may depend on what you are doing. REIT's cannot undergo 1031 exchanges. You may want to consider a tenancy in common program, or a Delaware Statutory Trust. What kind of projects are you involved in?
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