Multiple Owner LLCs and Non-profits

[Will Bazile]

Hello everyone,

I'm reaching out to gather some insights and advice regarding a housing initiative my aunt and I are considering for migrants from third-world countries who are being relocated to the western part of our state. The government has a program in place that covers 70% of the housing costs for approved migrants, leaving the migrants to cover the remaining 30%. Unfortunately, many landlords are hesitant to rent to these migrants due to their circumstances.

Given our personal connection to this issue, my aunt and I believe we can make a positive impact by providing housing for these migrants. We are exploring the idea of hopefully working with the government to establish a system, potentially through the creation of a nonprofit organization. This nonprofit would leverage government payments and seek additional grants to support the initiative.

However, we face a few challenges:

1. **Structure and Legal Framework**: We are unsure about the best way to structure this initiative. Should we start with forming a Multiple Owner LLC and then create a nonprofit? Or is it better to begin with the nonprofit and involve the LLC later?

2. **Knowledge and Resources**: We lack detailed knowledge about Multiple Owner LLCs and the intricacies of setting up a nonprofit. Understanding how these entities can work together to support our cause is crucial.

I am seeking feedback, resources, or any guidance on how to proceed with this plan. If you have experience or knowledge in setting up nonprofits, working with government housing programs, or structuring Multiple Owner LLCs, your input would be invaluable.

Thank you for taking the time to read this, and I am open to further discussions to refine our approach and make this initiative a reality.

[Will Bazile]

Quote from @Will Bazile:

Hello everyone,

I'm reaching out to gather some insights and advice regarding a housing initiative my aunt and I are considering for migrants from third-world countries who are being relocated to the western part of our state. The government has a program in place that covers 70% of the housing costs for approved migrants, leaving the migrants to cover the remaining 30%. Unfortunately, many landlords are hesitant to rent to these migrants due to their circumstances.

Given our personal connection to this issue, my aunt and I believe we can make a positive impact by providing housing for these migrants. We are exploring the idea of hopefully working with the government to establish a system, potentially through the creation of a nonprofit organization. This nonprofit would leverage government payments and seek additional grants to support the initiative.

However, we face a few challenges:

1. **Structure and Legal Framework**: We are unsure about the best way to structure this initiative. Should we start with forming a Multiple Owner LLC and then create a nonprofit? Or is it better to begin with the nonprofit and involve the LLC later?

2. **Knowledge and Resources**: We lack detailed knowledge about Multiple Owner LLCs and the intricacies of setting up a nonprofit. Understanding how these entities can work together to support our cause is crucial.

I am seeking feedback, resources, or any guidance on how to proceed with this plan. If you have experience or knowledge in setting up nonprofits, working with government housing programs, or structuring Multiple Owner LLCs, your input would be invaluable.

Thank you for taking the time to read this, and I am open to further discussions to refine our approach and make this initiative a reality.

Another related question, do we even need a nonprofit to receive these possible grants or subsidies from the government?

[Jason Wray]

Will,

That's a question that involves a lot of detail and conversation to map out the LLC, Financing, Grants, and percentage of partnership should you decide to acquire more than 5-10 properties.

Feel free to reach out if you want to discuss the scenario and I can try and detail some tips from my experience. Always happy to talk REI!

[Will Bazile]

Quote from @Jason Wray:

Will,

That's a question that involves a lot of detail and conversation to map out the LLC, Financing, Grants, and percentage of partnership should you decide to acquire more than 5-10 properties.

Feel free to reach out if you want to discuss the scenario and I can try and detail some tips from my experience. Always happy to talk REI!

 Will be sending an email later today, thank you!

[Henry Clark]

OP I would work it from the Government side first. Find out what best suits their needs. Sit down with them and lay out your thought process. Get a feel for the Size ($) of the discussion from the LLC or Non profit standpoint.

[Will Bazile]

Quote from @Henry Clark:

OP I would work it from the Government side first. Find out what best suits their needs. Sit down with them and lay out your thought process. Get a feel for the Size ($) of the discussion from the LLC or Non profit standpoint.

Thank you for the feedback. Do you have any advice on how I would go about meeting with the government or getting that tyoe of information? Our vision would be to finance the first initial houses but hopefully receive funding afterward to scale and continue, so how can one figure that out from the government side? 

[Henry Clark]

You have to do the leg work.

[Will Bazile]

Quote from @Henry Clark:

You have to do the leg work.

 Understood, thank you!

[Gino Barbaro]

@Will Bazile

I would contact an asset protection attorney. We work with Barth Calderon, and if you want an intro, DM me.

Work with a professional who's done it before

Gino