Is a Real Estate Investment Trust the best vehicle to get Investors for my planned commercial development? Why

The property is a 2.5 acre land, corner lot and adjacent to a proposed tourist attraction development. It is good for a commercial plaza with boutiques, restaurants, convenience store, gasoline station, lottery ticket sales, etc. The location is at the border of Nevada/California side of Pahrump Valley and is 37 miles SW of Las Vegas.
In Selling Property - Asked by Kelly B. - Dec 8, 2009
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Answer(s)

Nadina C.
Broker/Agent
Phoenix, AZ

Too small to justify the expense of creating a REIT. REITS are formed to hold multiple numbers of big properties in multiple states. You can put together a small group of investors through a Reg D (SEC) private offering. But you will need an experienced securities attorney with real estate offering experience to guide you legally through the process. Or you can get one or two experienced investor/developers to form a joint venture with you and form an LLC. Don't go bare on any of the above -- pay for legal and CPA expertise to keep you out of violating both federal and state securities laws and regulations. You don't know what you don't know.

Dec 11, 2009
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Chris S.
Broker/Agent
Coeur D'alene, ID

Exactly ... this is WAY TOO small for a REIT. For something this small network with family and friends and if you can't pull together the equity that way, you are going to need to wait out this real estate cycle. 99% of the investors out there today with cash are NOT going to touch a speculative project, they are too busy buying foreclosures at ten cents on the dollar!

Jan 22, 2010
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Gregory G.
Broker/Agent
San Francisco, CA

No, it is too small.
Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
(415)225-9894
gregory.garver@gmail.com

Mar 5, 2010
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