gregorygarver.com

ScholarlyPersuits · Joined: 01 Jan 2005 Posts: 5

I'm almost 90% sure that i want to start my real estate investment company as a corporation not a LLC. I was wondering is this a good idea. Also, can't i sell shares of my company to private investors to raise capital. Any advice on starting a commercial real estate investment comapany will help.

geoman470 · Joined: 19 Jul 2006 Posts: 3

I think you are right on starting as a corporation.HOWEVER...as legalities vary from state to state on private investors, I think you really need to find a good small business attorney in your area, pay him a fee, and find out the in's and out's from there. A lot to consider with investors. 1) Are they going to be silent partners? Or 2) Are they going to have an equal say in how the company is run? Would be worth the fee.to find a good business attorney to lay it all out for you. Or find a book on amazon about starting a business. Once you are using someone elses' money, the company is no longer yours exclusively, unless you have a proven track record and your investors are willing to leave you in full control.

frankieb4877 · Joined: 24 Dec 2006 Posts: 6

If you start a corporation in the real estate business as a start up business to purchase any kind of property at this time you would need to have a personal guarantee to the purchase of any real estate deal. Once you have established a track record as a corporation. Then the banks will not longer be looking for the personal guarantee.If you decided to sell shares of stock. then your company has gone public. There are a ton of other things that you will need to worry about.In my opinion i would take a few partners and get a LLC. That is a limited Liablity CO.Remember a Corporation if not done right could have its vail broken and still go after you personally.