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Updated almost 5 years ago on . Most recent reply
Is a 506 Fund the right setup?
A few friends and I were discussing how to “crowdfund” a real estate buy and hold company. The basic premise is our friends and family would invest x dollar amount for x # of years. I saw “crowdfund” because we are looking to get a group of 10 to 25 friends together, so it wouldn’t be public. What is the best entity to establish for this type of ownership structure? Thanks in advance for your knowledge!
Most Popular Reply
Originally posted by @Patrick Sittenauer:
A few friends and I were discussing how to “crowdfund” a real estate buy and hold company. The basic premise is our friends and family would invest x dollar amount for x # of years. I saw “crowdfund” because we are looking to get a group of 10 to 25 friends together, so it wouldn’t be public. What is the best entity to establish for this type of ownership structure? Thanks in advance for your knowledge!
506(b) is a good way to do it, but you cannot advertise publically. 506 (c) is accredited only. Also, make sure you file everything with the SEC.