I’ve recently brought a group of likeminded individuals together with a common goal to invest in real estate collectively. Since the capital will be raised quite quickly, due to more funds being allocated to the cause, what are some strategies to take when investing in real estate as a collective?
If possible, please include some DO’s and DONTS.
Thank you for your feedback and expertise.
If you truly can close quickly and make strong offers, that's a big advantage. Good commercial deals these days are requiring higher earnest money deposits and stronger terms. So if you can make strong offers, much the better for you.
DO make sure you're in compliance with securities laws. There are a lot of rules around what you need to do when pooling funds.
@Taylor L. I appreciate your feedback and have been doing research on the tax implication it’ll have on us all and I will look further into the securities laws! Thank you!
Yes make sure you have a strong operating agreement (whose in charge) and you are compliant with security laws.