top of page
Buy your Block Initiative
Frequently asked questions
Private REIC
Private REIT
There is no maximum limit. But for our initiative, if you need additional members, a general amount of 20 or less would be ideal. It would be wise to determine your number of members based on the funds needed to purchase the subject property and potential future purchases.
Single owners are also encouraged to incorporate as REIC's. Single owners are just a powerful and may have the same amount of available funding ability at REIC's with mulitple members.
Three of the biggest reasons are tax exposure, personal liability, & borrowing purposes.
For REIC's with multiple members, it makes it easier to identify share interest to ensure that each member is responsible for only their share of taxes owed on net profit. It's also easier and more defined to identify expenses related to the property to reduce tax liability. Plus, you are able to straight-line depreciate your property, which is an expense deduction against your rental or sell-based earnings. Please verify with your accountant.
Personal liability is another reason to incorporate. In the event that you are personally sued, you may be able to protect your real estate asset(s) by being a separate legal entity. Conversely, if your corporation is sued, you may be able to protect your personal assets. Please verify with your attorney.
For lending purposes, you can use your property to secure corporate credit, once established. So, when you need a loan or equity-line-of-credit for future real estate purchases or deals, you would no longer need to use your personal credit to qualify. It becomes a direct business-to-business transaction.
Absolutely! Partner with as many as you determine necessary to complete your deal. One of the benefits of incorporation is allowing business-to-business agreements to flourish. Simply use our forum to contact other REIC's with your opportunity or to look for opportunites to invest.
In business, any terms or conditions are generally accepted, so please make sure that you are agreeing to terms that benefit your corporation.
Yes. Our initiative for Buy your Block is asking you to do just that. Invest in your neighborhood. But because you are you own legal entity, you could actually choose to invest in any real estate transaction of your choice. You determine your own risk levels and rate of return requirements.
Although, we will ask our members to list or upload pictures onto our forum of properties and available land that are located in their own neighborhood, if they have no interest in pruchasing it themselves.
But please note: This is a real estate investor forum, not a real estate Broker/Agent forum.
We have no financial interest with any single transaction performed. There are no broker fees or any other hidden cost. Nor do we get involved or assume liability for any deal or purchase. Our goal is to encourage you to become an incorporated investor in your community. As a whole, the stronger our communites, the greater our prosperities.
bottom of page