Updated almost 2 years ago on . Most recent reply
Nonprofit Real Estate Investment Company ?
What's up y'all. Shawn the Newbie here. Me and 3 of my friends have pooled money together and starting a real estate investing company. We spoke with one accountant who suggested we become a nonprofit as opposed to LLC or S-Corp. Based on our mission statement of wanting to give back. Thoughts on a profitable nonprofit?
Tya
Shawn the Newbie
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@Karen Margrave to add to what she said, a nonprofit 501c3 is only for tax purposes. A nonprofit can make unlimited money, the money goes back into the organization and not to one specific person. However, you all will be paid a salary. I ran a nonprofit housing development company with 300+ units. Funding is very difficult. Typically, it involves partnerships with equity firms. Keep in mind that they provide funding for certain neighborhoods, which adds to other services we provided. I would be more than happy to answer more of your questions via phone call.