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.

[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!