How to start a REIT
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Ron M

United States

#25 Aug 21, 2011
Earning 35% per year return on my money. Need to raise capital to increase income. Thought about setting up a REIT? 100% safe investment collateralize with property. Inflation proof. The worst the economy gets the more we will earn. If you have any funds to play with please contact. Will escrow funds in an Attorney Trust Account until the proper structure is set up.
Ron M

United States

#26 Aug 23, 2011
First set up a corporation for property managment. You must locate 100 investors to start up a REIT. You can draft a private placement Memorandum to solict funds from investors. Explain your strategy to the investors. Thereafter it's simple to change corporation into a REIT. File form 1120 with the IRS. Recently I file a new corporation and developed a business plan. My objective is to purchase tax cerificates and tax deeds. Earning 25% or more per year. The potential is much higher if you end up owning the properties. Recently acquired a property for 10% of the appraised value. The worst the economy becomes the more profit we will earn. A REIT must pay investors 90% of the profits per year. A REIT will allow us to earn profits tax free until paid as dividends. If you have a IRA or Roth? We can pay the dividends directy into accounts which will remain tax exempt until retirement. Regardless you need to spend time understanding how to buy tax certificates and deeds. We inspect all properties before bidding. Welcome new investors until you figure out what you are doing. There over 5,000 counties within the U.S. With tax sales each month. Billions of dollars in sales each month.
Ron M

United States

#27 Aug 23, 2011
Haroon wrote:
Hello,
I am wondering, what is the best way to go about starting a REIT? I have seen some websites that give a brief overview of the REIT requirements and so on, and also I have seen websites and books that talk about REITS from an investor's perspective. Are there any books, guides, websites, etc. that tell a step-by-step process to open a REIT? Any tips would be greatly appreciated.
Thanks.
Read my post Ron M
Ron M

United States

#28 Aug 23, 2011
Velvet fr Jamaica wrote:
<quoted text>
The link below is a very useful source of information on how to start a REIT. Good luck ( http://www.ehow.com/how_5061127_form-reit.htm... )
Read my post RonM
Gianfranco

Brooklyn, NY

#29 Sep 19, 2011
I own almost 30 rental properties in the Chicago area. I would love to bundle them all into a REIT. I need to know where to start. My goal is to eventually sell the whole portfolio as one package deal.
Ryan Hamaker

Tampa, FL

#30 Feb 2, 2012
Raymondo Gilberto wrote:
There is no simple how to book. With all the rules and regulations, and constant changes - especially in todays market you need to contact and pay a reputable SEC attorney. That is costly $8,000 -$20,000 but it needs to be done if you want to start a REIT and have everything compliant with SEC guidelines as well as state and federal law. I guess the old adage applies "you need to spend money to make it"
This is the best advice on here from what I have read. Our company partners with investors to acquire income-producing properties. The best thing you can do is find an SEC attorney and go through all the options before you go out and try to find investors. Once you have more than 100 investors, you may automatically qualify as a REIT so be careful.
Rocco Cortese

Chula Vista, CA

#31 Feb 7, 2012
Haroon wrote:
Hello,
I am wondering, what is the best way to go about starting a REIT? I have seen some websites that give a brief overview of the REIT requirements and so on, and also I have seen websites and books that talk about REITS from an investor's perspective. Are there any books, guides, websites, etc. that tell a step-by-step process to open a REIT? Any tips would be greatly appreciated.
Thanks.
That is a very complicated question. I'd like to understand why you want to start one before answering that question. Check out www.REITfyi.com for a good working knowledge relative to REITs. There is also some good information about starting a REIT from www.REISA.org .

Since: Feb 12

Chula Vista, CA

#32 Feb 7, 2012
Gianfranco wrote:
I own almost 30 rental properties in the Chicago area. I would love to bundle them all into a REIT. I need to know where to start. My goal is to eventually sell the whole portfolio as one package deal.
Contact me at rcortese@heritagecap.com. I can assist and have helped clients roll portfolios into funds/reits, etc.
Kapil Patel

Hemel Hempstead, UK

#33 Mar 12, 2012
Aklush wrote:
just ask people to hve faith in u ,ask money from them and start investing it in different types of properties and when the return comes on that property divide it with ur investors as per there share ..
for further diccussion callme at
May I have your no. please
L king

United States

#34 Apr 11, 2012
I am a real estate broker and I want to start a REIT. I have taken distress properties and remodeled or built new for very good profits. How do I go about starting a REIT.There are a lot of good deals right now on and off the market. Any suggestions. Looking for investors now to capitalize on good deals presently on the market. Email. realtorlking@yahoo.com
James

Sarasota, FL

#35 May 22, 2012
Good afternoon Joshwa
Wandering if you are still interested in doing REITs?
I found a post online that you are in the arena.... sort of.
Thanks

james4078@yahoo.com
Strategic Capital Group wrote:
Johnny,
I Would love to chat with you about your projects. There may be a way we can actually help each other. Shoot me an email at scapgroup@gmail.com. Lets chat.
Thanks
Joshwa
Rick

Bullhead City, AZ

#36 Sep 9, 2012
Instructions
Things You'll Need-
100 investors
Lawyer

How to Start a Real Estate Investment Trust
1
Write a partnership agreement for the partners who are forming the REIT. The partnership agreement needs to contain details on ownership, management responsibilities and financial contributions. The partnership agreement should be in the form of a "limited liability corporation" and must be drafted by a lawyer.

2
File the certificate of incorporation with the secretary of state in the state where the REIT will be based and do business. The fee to file varies from state to state.

3
Write a private placement memorandum (PPM). A PPM is used to introduce the REIT and its investment objectives to possible investors for the purpose of soliciting funds. Have several Investment properties listed that are potential properties for Investment.

4
Send the PPM out to qualified potential investors. This can be done individually or through a group setting.

5
Sign up at least 100 investors, the minimum required for a REIT.

6
Change the previous partnership agreement to reflect the new REIT and amend the certificate of incorporation with the secretary of state's office.

7
File an Internal Revenue Service form 1120, which exempts you from having to pay corporate taxes on revenue from the REIT, provided that 90 percent of the earnings are distributed.

8
Invest the capital that has been raised in real estate assets.

Tips & Warnings
As with any investment or business venture, advice from professionals is recommended. The documents needed to form and run a REIT should be prepared and reviewed by legal and accounting professionals.

Read more: How to Start a REIT Company | eHow.com http://www.ehow.com/how_6404332_start-reit-co...

How to Understand REITs
X

Clayton Browne
Clayton Browne has been writing professionally since 1994. He has written and edited everything from science fiction to semiconductor patents to dissertations in linguistics, having worked for Holt, Rinehart & Winston, Steck-Vaughn and The Psychological Corp. Browne has a Master of Science in linguistic anthropology from the University of Wisconsin-Milwaukee.

By Clayton Browne, eHow Contributor
A real estate investment trust, or REIT, is a stock exchange-traded investment vehicle based on real estate. Individual REITs tend to focus on a specific area of real estate, office or residential or retail, for example, but some REITs are diversified and invest in all areas of real estate. REITs have special tax advantages compared to other companies in that they avoid most corporate income tax. But IRS regulations require that REITs distribute at least 90 percent of their taxable profits as dividends to their shareholders.

How to Invest In a Healthcare REIT
Tax Implications of a REIT

Instructions

1
Research real estate investment trusts. Learn how investment trusts compare to mutual funds and other investment vehicles (including traditional real estate investments and company stocks) and decide whether they are right for you.

2
Research specific REITs. There are hundreds to choose from (including mortgage REITs and a couple of REITs that only invest in golf courses), but you should probably limit yourself to three or four to start with. Compare the net asset value (NAV) of the REITS you are looking at as well as the ROI (return on investment, which is the increase in NAV + dividend) over time to decide which one(s) look best to you.

3
Make a small investment in one or two REITs on a test basis. Follow your REITs closely (they are listed on the NYSE and NASDAQ exchanges like any other stock) and note how the investment performs over time. If the REIT is producing a steady profit and you like the types of investments the management is making, consider increasing the amount you have invested.

Read more: How to Understand REITs | eHow.com http://www.ehow.com/how_7454599_understand-re...

Rick Anderson
Leo Lee

Myakka City, FL

#38 Dec 3, 2012
RIck, great post.... easy to set up the entity, and if you have starting capital you can begin to buy properties for the type of REIT you are creating. If you don't have properties already that will become part of the REIT, and can't show the ability to manage A REIT entity, then the challenge will be finding investors (100 minimum) to invest with an untested company.

As a start up, you may not be qualified to be a REIT for several years until you reach the requisite minimum investors.

Also keep in mind the 50%/5 rule.... no five investors can control 50% or more of the company at any year end period. This basically restricts the founder from owning more than about 46% of the business provided the other investors are restricted to not more than 1% each.

You may need to consider some restrictions in how many shares or what percentage of the REIT shareholders may own exclusive of the managing partner(founder) to ensure you don't fail the 50%/5 rule.

For examle at only 110 shareholders, they would need to control about 55% of the stock at a limit of 0.5% each to avoid complications withthe 50%/5 rule, leaving the managing partner 45% and any 4 investors at a max of 47% thus avoiding any complications.

One should also consider that it is easier getting smaller amounts than larger amounts unless you have a lot of rich friends, Getting 200 people to invest $10,000 each might be easier than getting 100 to invest $20,000. The more shareholders you have the fewer complications you have meeting the 100 shareholder minimum.

Leo

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