Selling shares of an LLC. What are best practices?

[Dj Larsen]

I am interested in purchasing properties with small groups of families for student housing (their kids). Each property will be purchase and manage through a seperate LLC.

1. As the managing partner, will I need to qualify investors (accredited/sophisticated)?

2. Is there a minimum ownership (any) that I need to have in order to manage the LLC?

3. As a non-Realtor, am I able to sell shares in each LLC, as owners transition out?

Woukd enjoy hearing your LLC stories.

[Scott Smith]

Originally posted by @Scott Mac:

@Scott Smith

Hi Scott,

Are you talking about using Illinois Land Trusts?

 Hey fellow Scott,

While I am familiar with the Illinois Land Trust, that is not what I was referring to above. I was mainly pointing out that I believe the Series LLC structure, which functions much like the Delaware Statutory Trust, would be a great structure for the OP based on it's cost effectiveness and utility. The Series LLC can be formed in 12 states so far, but it is used commonly through all 50 states.

If you have any questions on these entities, shoot them my way. I may try hop on again some time this weekend to check the thread and respond if I can!

This is not legal advice, just my opinion as a real estate investor.