Placing a REI Company under a non-profit LLC

4 Replies

Hello All,

Does anyone know the regulations of placing a real estate investment company under the umbrella of a non-profit LLC? I currently have a non-profit but to save some time and effort on reinventing the wheel, I want to list my REI under the LLC. Any advice for which way that I should direct the company listing? Thanks in advance.

Typically non profits have specific designations, for example if your non-profit is for another type of business you cannot put a real estate company underneath it. 

@Keith Allen

Not sure what kind of non-profit you own but remember that most nonprofits cannot be "owned." A lot of nonprofit founders can get screwed over with the mistaken that they own a nonprofit. Because you cannot own a nonprofit, it is generally not a good idea to put any of your own assets under a nonprofit unless you intend to donate it. 

On a related note, many people feel that a non-profit lease instead of own real estate. Why that is the case gets complicated and depends heavily on the situation. But I personally lean towards this approach as well. From a non-profit perspective, I think a non-profit can generally "get more bang for its buck" by leasing then buying.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Chris K., thank you for the breakdown of the non-profit, I appreciate the information. And as you are not my lawyer and only participated to give me informational purpose commentary, your knowledge of the subject has been helpful and much gratitude to you.