What state is best for setting up a - REIT

[Gilbert Ryan]

I am sure we have some experts here. I need to raise some serious capital and have decided to go the route of using REIT - Real estate investment trust.

I was considering using Delaware or Nevada, but someone mentioned to me at a real estate seminar, i should use the state where the properties would be located.

I am intensively studying the legal requirements as per IRS code section 856. You should see the crazy requirements under that section. The biggest problem in our country today, is the unnecessary regulations from people that never created any wealth. But i think the REIT would afford me the flexibility of almost no taxes and also allows me to attract more wealthy investors than a regular corporation setup.

What state would you use for setting up a REIT?