Number of Units to Consider becoming a REIT

[Sean O'Dowd]

This is a rather silly question but (full disclosure) I am a college student studying Real Estate and information from this site has helped provide context for my studies. For that, Thank You!!! to anyone who has commented on my posts, or anywhere on this site! I've probably read your comments, and they have helped!!

My understanding is that REIT's do not need to be public, but simply need to have over a 100 investors, distribute over 90% of their profits, and have no more than 5 partners owning more than 50% of the equity. Owning multiple multi-family apartments and generating solid cash flow can lead to a lot of money.

So my question: How large do you need to be as an investor where you should consider reaching out to 100+ investors? Are there any general rules of thumb about the number of units you should own, or the amount of equity you should own?