Small Investment REIT

[Emanuel Cryzeski]

Hello i'm brand new to the world of rental properties to provide semi passive income. I've come up with this vision of creating a small investment REIT, where different people could invest a very small portion of money, starting around $100, for a small share of a rental properties (mostly multi-families) and then get their share of the profits. Would a business model like this make any sense to start up to be able to create a larger passive income? This might all sound like a stupid question, but i've been trying to find companies of this nature and failed to find any.

[RJ Reynolds]

A better model would grow around an already established individual or group with experience in the rental world & property management. Once you are established, you could then open up a portfolio of rental properties for what you suggest giving others an opportunity to get into real estate investing with smaller levels of funding.  To my mind it would be a way of giving back to the community in which you are already successful.

RJ

[Steve Gordon]

Please review Rule 506(b) regarding raising funds for your deals.  If you start soliciting money from people you want to make sure it doesn't constitute a violation by creating a security as defined in this rule.  The link is an article to better articulate the rule.

A good rule of thumb is that whenever someone raises money from private investors and then makes decisions on their behalf, a security has been created.

https://syndicationattorneys.c...

[Alina Trigub]

@Emanuel Cryzeski

Consider reaching out to securities attorneys to speak about your potential venture. There're several on BP. Just search for them.