What is the name of your state (only U.S. law)? NJ
I've been toying with the idea of buying an investment property but I'd like to offload some of the risks. I have a group of 6-10 potential investors (all friends / acquaintances) that are interested.
I could use some direction as to how I should proceed such as:
1 - Do we need to form some type of a corporation with equal ownership and then purchase the property through the corporation?
2 - I understand that there are certain guidelines for calculating rental income, depreciation, tax deductions etc...How would this apply if there are a group of investors?
3 - Would each individual investor have to pickup income each year (similar to an S-Corp) or would the corporation simply pickup the income and pay the associated taxes.
4 - When the property is sold, would the proceeds / profits simply be shared equally amongst investors.
My research to date has detailed how an individual would purchase real estate as an investment -- everything from obtaining a mortgage as an investment property, to writing off improvements and depreciation etc...I can't seem to find anything regarding purchasing real estate with a group of individuals -- similar I guess to REIT's?
Thank you
I've been toying with the idea of buying an investment property but I'd like to offload some of the risks. I have a group of 6-10 potential investors (all friends / acquaintances) that are interested.
I could use some direction as to how I should proceed such as:
1 - Do we need to form some type of a corporation with equal ownership and then purchase the property through the corporation?
2 - I understand that there are certain guidelines for calculating rental income, depreciation, tax deductions etc...How would this apply if there are a group of investors?
3 - Would each individual investor have to pickup income each year (similar to an S-Corp) or would the corporation simply pickup the income and pay the associated taxes.
4 - When the property is sold, would the proceeds / profits simply be shared equally amongst investors.
My research to date has detailed how an individual would purchase real estate as an investment -- everything from obtaining a mortgage as an investment property, to writing off improvements and depreciation etc...I can't seem to find anything regarding purchasing real estate with a group of individuals -- similar I guess to REIT's?
Thank you