Posted by Steve on May 13, 2007 at 10:14:37:
Yes I intend on having advise of counsel but it is important to get an idea first so I thank you for your response! I was thinking that if each member purchased a lot of land on terms (divided interest) and had a pre-exsisting realtionship for 6 months or a year with an option in the contract to trade their equity in the individual lot to an undivided interest in the LLC lots if they wanted we may be compliance with securities laws. I buy about $500,000.00 of property every 6 months and then resell it, I am trying to figure out a way with the least hassels to take in ivestors like a membership club and not have to re-sell it all each time and share the ownership and profits. Thanks
LP, LLC, or ? - Posted by steve
Posted by steve on May 12, 2007 at 06:26:34:
Any ideas on the best entity for a real estate investment club that’s like a stock club with members investing funds. Their will be new members joining all the time, an LP looks great in principal with managing and limited partners but their may be a problem since theirs no pre-exsisting realationship before they join, same with corp, otherwise I have a c-corp I could use, but can’t solicite to sell stock, any recommendations?
Be Careful - Posted by Jimmy
Posted by Jimmy on May 13, 2007 at 07:24:28:
First, and LLC can be structured to be very similar to an LP. The Managers run the business, and the Members own it.
Second, If you intend to have a lot of different people investing in his gig, you will quickly enter the realm of ssecurities law. and you DO NOT want to be there. you absolutely must consult with counsel (find a real estate aty who is familiar with securities law. plenty of them out there. and they are most often found in big law firms and they are expensive).
Third, selling LLC membership interests or LP interests or corporation stock—its all the same. you don’t side-step securities law by using a different entity.