Best Location to Set Up Real Estate or M&A Syndications & Funds – Natu Myers of Raises.com
Make sure you do not settle on the location to set up your real estate’s or mergers and acquisitions deal until you. Until you establish these two things. First, because really people sometimes wonder for their new real estate syndication so that they can raise equity to acquire real estate or further M&A deal to raise equity to acquire a deal. You know, people that are just getting into it, they always wonder what is the first where is the first place that I should actually register the entities, you know, for their fund? And, you know, this may be like a general partnership and limited partnership combination. And really it’s just to focus on the limited partnership. The main criteria, really, if you can boil everything down two main criteria, number one, the securities laws, because you have to understand the laws of the land, because there are two types of laws generally when it comes to raising equity. And first off, you have to make sure that like if you’re raising equity and if it’s an equity deal, because sometimes you can do some of these deals without equity. But if you’re raising equity from other people, you know, you want to make sure that you follow the two types of securities laws. There are the federal laws and then there are the state laws or provincial laws. So basically you have a jurist, you have a federal, you know, type of jurisdictional law, like in the United States with the Securities and Exchange Commission. (Top real estate syndication companies)
And then within each state in the United States, you have these things called state wide laws, which are called blue sky laws. In Canada, there is a governing body called the Canadian Securities Administrators. And within that governing body there are the Securities commissions, which are only provincial. And in the United Kingdom, you have the Financial Conduct Authority, which is really the governing body. And within each jurisdiction, within each jurisdiction and within each jurisdiction in each region, there are slightly different rules depending on how you go about it. So really, you have to keep in track. So where you’re registered is based on where what the rules say about where the deals you’re getting are. So there are two things that determine so there are two things that determine what the laws would say about your deal within those laws. You know, it’s based on where mainly where you’re selling the investors. So really, in those with those securities laws, you want to keep in track and you want to make sure you understand where are the investors to you’re selling to like where are they? Are they in California or are they in multiple states or are they in multiple provinces or are they in a different country? So based on that, then you will have a better idea on where to register things, because, for example, if somebody wants to do a real estate deal in California and it’s only real estate, then they don’t even have to do some of the federal regulatory reporting, you know, in the United States for Edgar. (Top real estate syndication companies)
And this is at the time of the recording of this video. And obviously this can change as time flies. But basically you want to check to make sure that the investors who are in the locations that you know, you’re selling your deal to, you want to check what your statewide laws say about whether they can like whether you still have to file, you know, an additional filing notification to your states as well as to the country or whether you only have to file to the state and you don’t have to file it to the country. So you want to look at that and you want to keep a really big eye on that. So based on that and based on the pros and cons versus, hey, let’s say you don’t want to notify the Federal Securities Commission and you just want to just get the deal done quickly. And all the deals happen to be in California and you happen to have investors in California, then in that case, you would just do everything in California. If you have people that are all across the country and you know, you really don’t care, then you would do it that way. So, you know, or if you have somebody across like offshore and you want to raise capital within America, then you do the regulation. S So all these things depend on where the investor is, what your local jurisdiction says and what your federal jurisdiction is. (Top real estate syndication companies)
See next. The second thing that determines where you should register your company depends on tax law. And the tax law is also dependent is dependent on two things. Mainly it’s dependent on where the investors are investing from, and it’s dependent on where you’re originating the deals from. So where like the deals that you want to acquire using other investors money, where are these people and where are these companies? Right? Because based on that, then you can understand, hey, if you have a company that is based in New York City and the revenues and then the revenues that the company makes is based on is making a certain amount of revenue before tax, but then after tax in that state, the amount of tax that the company gets has to pay is a certain amount versus if the company were to move to another jurisdiction or to get acquired by another parent company in another jurisdiction. How would the tax change and that can help you determine where it would make sense to register your fund and to set up your. And then we’re like, Would the company change its location? That’s why many times people say earnings before tax because, you know, sometimes the companies can actually change locations, sometimes they can’t change locations. And if you have a parent company that takes over and invest in that sub company, you know, then you have to talk to a tax advisor to determine how would that change the returns that people will get, how would that change a tax? And the second thing is obviously just on investor reporting, but based on that, based on what where the target company changes or the target real estate will change, whether it will change or it won’t. (Top real estate syndication companies)
That can help you determine, you know, where should you register your fund so that you can make the best out of you, can pay in a compliant way, obviously efficient levels of tax. So you don’t have to be overburdened here with yourself and the investors. So that’s pretty much it in a nutshell. The really two things. Number one, it’s the securities laws. And number two, it’s really the tax. And then that can help you determine where to register your entities. So if you’re worried about when it comes to the securities law, you want to look at the federal jurisdiction like the federal securities laws and you want to look at the local jurisdiction like the local jurisdiction, whether it be your states or whether it be like a province, if you’re in Canada or your region, if you’re in the UK and, you know, based on that and based on the amount of work you want to do or the amount of people you have to notify after you raise equity from investors, if you have to notify people, mainly United States folks, you have to notify Edgar and you probably have to notify your states depending on, you know, how how many people you want to notify, what they want to get out of notifying the country via Edgar, You don’t may not have to notify the SEC or you may or may not care or depending on if you have investors across seas that can all help you determine what paperwork you have to do and where to register your entities 100%. (Top real estate syndication companies)
[00:07:03] And then after that, when it comes to tax, you know, just make sure that you understand if the company that you’re acquiring has to be in that current location, it’s in. And they have to be you have to continue to pay the tax that they’re paying and see how that would affect the deal. After you acquired a deal, if you were to be in a different jurisdiction. And when you have all that into accounts, then you can build your business plan when it comes to determining where to set up your private equity deals. And so with this, if it’s something that, you know, you have the knowledge and then it gets you in the right path, hit the like button and subscribe. But if you actually want a team to implement all this for, you just have to raise this icon book a call and we’ll see if we can make it happen for you. And so with this, we’ll see you in the next. (Top real estate syndication companies)