Everytime you are investing as a value add play you are improving:-household quality-quality of the service provided to the tenents-management-decreasing expenses and increasing appreciation of the propertyYour shareholders get their capital plus a return-Your track record as someone to do business withIs that enough?

This statement makes very little sense.In order to bring in multiple parties who all contribute funds to a re investment, you must be licnesed by the SEC or utilize an LLC or other entity making each party a shareholder/owner of the company.

-Due to the impracticality of giving every small shareholder a seat at the decision-making table, only a limited number of decisions will be available to shareholders.

With S-Corporations, shareholders don't get debt basis for any debts that the corporation takes on, other than personal debt that the corporation owes directly to the shareholder:http://www3.cbiz.com/page.asp?

If I was a share holder and my holdings just took a 40% one day hit I would be looking into that.

People will often create an LLC or a Corporation in order to protect their legal interests. However, I was recently reminded of one area that gets overlooked: prenuptial agreements. These are important for various r...

Too many implications with shareholders and the Feds.Class B and C though, prices have over doubled in the past few years. 

Depending on the state, the members can consist of a single individual (one owner), two or more individuals, corporations or other LLCs.Unlike shareholders in a corporation, LLCs are not taxed as a separate business entity.

We will file to obtain S Corp status to be taxed as a corporation.We will purchase and renovate homes with cash and profit will be paid through dividends to share holders.

", he theoretically has some protection, but my (somewhat distant) memory of business law is that the so-called corporate veil (protecting the shareholders of the corporation from personal liability) can be pierced by any number of methods and fraud is one of them.