How do you start something like a REIT

[James Sanson]

We have investors who would not qualify for a REIT, but they have money to go into an LLC that I own and to do buy and holds with me. I will maintain XYZ% of the LLC and sell off portions of it to them. From a forming standpoint to protect everybody on ownership, risk, and taxation what pointers would you have?

[Mauricio Rauld]

You guys are all correct that this is a securities offering and you would need to comply with both State and Federal securities laws.  ANYTIME you take money from investors where the returns are generated primarily from your efforts (your investors are passive) you are issuing a security.  You must Register, Find and Exemption, or its Illegal.

@James Sanson @Taylor L. @Luke Miller