Equity Raising - Collection of like minded individuals

[rwbus]

What is the name of your state (only U.S. law)? Florida

I have an idea that I believe many like minded individuals would be interested in. I won't go into the details of the type of individuals that would be interested but it would be for like minded people but also an investment opportunity. In summary, buying a large tract of land (3000 to 5000 acres) and develop with basic infrastructure (roads, utilities, etc.) as well as a retail district (small supermarket, small retail stores, etc.) but become a "community" for individuals with the same "mindset".

The idea would be to sell ownership in the development. Sell equity and each person have percentage ownership based on shares. Estimated would need about $10 million. Assume 10,000 individuals invest $1,000. Buy property (assume $6 million). Develop infrastructure. Sell lots in development. Develop and Rent retail space. Profit from sales and residual rents and consider taking income and duplicating in another area of same state or another state. I firmly believe there would be an interest and, personally, if I knew there was something like what I envision I would invest $1,000 (or more) in a heartbeat right now. I believe there would be incredible interest in my development ownership idea and believe I could find 10,000 investors quickly if not more very interested in being a part of this development idea.

But just don't know what the legal limitations are. I am ready to research in much greater detail and discuss with developers, etc. and invest in more information to develop more detailed and accurate proforma income statements, balance sheets, etc. but just don't know if my idea is viable and how to legally find investors, how to legally sell ownership shares, and what that cost would be. And don't want to spend $15,000 to $20,000 to get specific detailed information and cost estimates to build accurate proforma income statements only to find there is no reasonable way to sell ownership shares in the company.

Any ideas?

Thanks in advance,

Rick

 

[tranquility]

Co-ops, REITs, corporation or limited partnerships are all possible. It all depends. But, development of the legal entity and plan will be a major part of the cost up front. Until you have that, you have nothing but a dream.

 

[rwbus]

Thanks for the reply and that was my take as well but have no clue as to what that entails. In a general discussion what might that cost to get it "ready" to start raising equity and what is the general time frame needed?

Is this tens of thousands of dollars or hundreds of thousands of dollars to get it ready to raise capital selling shares?

Is this 6 months or 18 months before that can start?

Just trying to get some general ideas. I don't mind starting the process and spending $20,000 or so to start finding out by discussing with legal representatives/developers/etc. but if I have a better idea in advance what is involved it will help in determining how I approach this venture - if at all

Thanks again.

 

[tranquility]

It depends. It is cheaper, but longer, if you figure out a way to do it yourself. It is more expensive, but faster, if you hire an attorney. The planning of the organization takes the most time. If you do a securitization route, there are any number of laws regarding the offering and it could take a while to comply.

What you are looking for is the actual product you are making. Many work in such an area first for others and gain the expertise to start making all their decision on their own in a small project. If that is successful, a larger project is attempted.

Your questions seem as though you have an idea. That is such a small part of such a project it does not seem you have the expertise to carry it out. I don't either. Nor does just about any attorney you would go to. You need a team of experts brought together to create this project. It will not be done on the cheap. I can't even guess the length of time and/or amount of money, but those I've seen in the news who create some of the survivalist communities are into it for hundreds of thousands BEFORE they even get to the point they start bringing in money.