Section 1031 exchange proceeds must be invested in direct property ownership, not in a real estate fund structured as a partnership. Although a TIC structure is a possible alternative, due to a combination of tax law and mortgage lender requirements, TICs are an alternative only under limited circumstances require careful structuring to comply with both tax and securities laws.
Read MoreAlthough REITs and real estate funds both focus on real estate and real estate-related assets, their structures, accessibility, liquidity, return potential, and risk profiles can differ significantly.
Read MorePeople raising money for a small business or real estate investment may be surprised that they are selling investment contracts subject to federal and state securities laws.
Read MoreReal estate fund sponsors should establish policies and procedures and adapt their legal documents to prepare for the Corporate Transparency Act.
Read MoreThe newly-passed Corporate Transparency Act will require many small businesses and real estate investment to disclose their beneficial owners.
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