Sat, Jul 04, 2009
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Setup Of Your Own Private REIT |
giParrish
6 Posts
Member Since: 03/05/2008
Springfield, PA
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Posted: 14:53 on 08-12-2008
Hello Everyone,
How would you like to set up your own Private REIT with multiple investors or Private Funding Company? A particular GURU communicates to me that he can teach me show me the wa and show me the money.
This question was posed to me via email solicitation by a ‘Private Money’ Guru [MS] inviting me to attend his $1797 2-day boot camp being held in VA.
From the research I’ve done, it would cost thousands of dollars [$20-$30K] to put together even a small REIT offering; up to ten ‘Accredited Investors’, pooling up to $5 MM.
Does anyone know of a legitimate Home Study (preferred) or Boot Camp that will get me on the right road? Could anyone give me a heads up about the Private Money buzz? Thanks for any help.
gi
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ITBInvestor
525 Posts
Member Since: 09/07/2005
Holly Springs, NC
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Posted: 17:31 on 08-12-2008
My first question is why a REIT? I think you are right about the legal and accounting costs... and this idea does have appeal to me as a capital raising method. But can you achieve the same goals without a REIT?
As a member/manager in a multi-member LLC, I do not know the real advantages of using a REIT... if you take the class, please share your experience. BTW, we use private money in the LLC, but debt (recourse and non-recourse) not equity.
I Googled "set up Private REIT". Of interest:
http://www.thecreativeinvestor.com/ForumArchives/viewarctopic/35352/
http://money.howstuffworks.com/personal-finance/reit.htm
http://www.reit-funding.com/?gclid=CNDajficiZUCFQpjnAodvAyEqQ
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cjmazur
4284 Posts
Member Since: 07/23/2003
Cupertino, CA
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Posted: 00:22 on 08-13-2008
sounds like a scam.
it sound excite to heard all these terms thrown around, but what is the real advantage?
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4e6zbi102
118 Posts
Member Since: 06/14/2003
Las Vegas, NV
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Posted: 04:04 on 08-13-2008
You can't do a private REIT with 10 investors if they are individuals, because REITs have a minimum of 100 shareholders. That's why REITs are a waste of time for small or medium sized investment activities. That, and the supersized legal and accounting costs relative to the actual complexity of the beast. I can see raising $100 million for a REIT, but $10 million is too small (no matter if that's big money on our personal scale).
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giParrish
6 Posts
Member Since: 03/05/2008
Springfield, PA
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Posted: 09:57 on 08-13-2008
Hi Guys,
Thanks so much for your comments and 'heads up'. The links provided and the advice have certainly pointed me in the right direction. I'll keep you posted.
gi
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giParrish
6 Posts
Member Since: 03/05/2008
Springfield, PA
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Posted: 07:45 on 09-11-2008
Hi Skippy,
For now, I'll probably use a LLC or a JV to get the job done. I am interested in taking a look at who you referred. If permissible by the moderator, please send me a private message letting me know of the website you tried to reference. It's too soon for you to be posting URL's per the rules; and that's fair.
If that's a 'No Go', please send me an email to **Please See My Profile** Thanks a bunch!
gi
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