Real Estate Investment Trust Advisory Agreement

State:
Multi-State
Control #:
US-0147BG
Format:
Word; 
Rich Text
Instant download

Description

A real estate investment trust (REIT) is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of commercial real estate, ranging from office and apartment building to warehouses, hospitals, shopping centers, hotels and even timberlands. Some REITs also engage in financing real estate. REITs were designed to provide a real estate investment structure similar to the structure mutual funds provide for investment in stocks. REITs are strong income vehicles because REITs must pay out at least 90% of their taxable income in the form of dividends to shareholders.
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FAQ

You can invest in a publicly traded REIT, which is listed on a major stock exchange, by purchasing shares through a broker. You can purchase shares of a non-traded REIT through a broker that participates in the non-traded REIT's offering. You can also purchase shares in a REIT mutual fund or REIT exchange-traded fund.

Form a taxable entity. Draft a Private Placement Memorandum (PPM) Find investors. Convert your management company into a REIT. Maintain compliance.

Investment Advisory Agreement means an agreement under which Company or a Company Subsidiary acts as an investment adviser or sub-adviser to, or manages any investment or trading account of, any Client. Sample 2. Based on 9 documents.

Most REITs have a straightforward business model: The REIT leases space and collects rents on the properties, then distributes that income as dividends to shareholders. Mortgage REITs don't own real estate, but finance real estate, instead. These REITs earn income from the interest on their investments.

Typically $1,000 - $25,000; private REITs that are designed for institutional or accredited investors generally require a much higher minimum investment.

Form a taxable entity. Draft a Private Placement Memorandum (PPM) Find investors. Convert your management company into a REIT. Maintain compliance.

Draw up a partnership agreement that designates the percent ownership, financial contributions and responsibilities of each partner in the REIT. Incorporate your management company with the secretary of state in the state in which your REIT will operate. Draft an offering prospectus.

Starting a REIT isn't a one-and-done deal. You must continue to qualify in order to receive the same tax treatment.At least 75% of the REIT's assets must be in real estate, or real estate mortgages, quarterly. At least 75% of the REIT's gross income must come from rental income or mortgage interest.

Draw up a partnership agreement that designates the percent ownership, financial contributions and responsibilities of each partner in the REIT. Incorporate your management company with the secretary of state in the state in which your REIT will operate. Draft an offering prospectus.

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Real Estate Investment Trust Advisory Agreement