A TIC structure would be hard to manage. An entity would be the obvious answer. an LP/LLC or LLP would probably be the simplest. a private REIT would work as well.
you definitely will want to engage counsel, and not your brother-in-law who does personal injury work. You need a securities lawyer experienced in real estate syndications. There are a lot of issues to consider when you are taking in OPM (other people’s money). there are a lot of ways to to get sued when the deal goes sideways or backwards. Protect yourself at all times.
An experienced attorney can guide you into the best entity structure for your given state. If you happen to be in TX or CA, email me privately, and I can get you referrals.
Posted by Cory Simek on March 19, 2005 at 12:09:46:
I have managed a few successful small developments through LLC form. But I am getting ready to mount a new property business on a larger scale. I plan to attract between 200 & 400 investors, many of them small around $20,000 each. I will be buying and managing a portfolio of properties, and will do some development in the second stage in a few years.
What about the REIT structure? From my research it seems like it may be the best form, for my investors and for me as well. And I am feeling it is not as complicated as some feel.
Does anyone have any thoughts & experience here?
One last question regarding TICs. I am thinking a TIC structure is out of line here because I would lose my ability to simply raise money from investors and then use as I see fit, and lose some flexibility in managing our portfolio of properties. Am I right on this count?