A REIT, or real estate investment in trust, is an entity that owns, operates, or finances real estate that produces income. The REIT structure allows the corporation to avoid paying corporate taxes on earnings. A REIT makes it possible for investors to get dividends from investments in real estate without personally buying, managing, or financing any properties personally.
Most REITs lease space and collected on the properties, then distributing the dividends to its owners. Mortgage REITs earn interest from the financing of real estate. The internal revenue code requires that REIT distribute income by primarily owning income-generating real estate. Among other things, at least 75% of the REIT assets should be in cash, real estate, or U.S. Treasuries. Also, the real estate investment trust must get at least 75% of its income from rents, interest on mortgages that finance the real property, or the sale of real estate.
Usually, a REIT starts as a limited liability company or partnership, designating the amount of ownership. A corporation REIT must have at least 100 investors after its first year of operation. An offering prospectus must include information on the REIT managers, properties, and investment strategies. You will then need to amend your certificate of incorporation when you have 100 investors. Then your corporation will be recognized as a REIT as long as it continues to operate under the guidelines required for real estate investment trusts.
We help clients tackle the issues involving REITs, which are complex matters that usually involve financing, constructions, development, leasing, and environmental issues. Our Waco business lawyers have extensive experience with real estate and the formation of REITs. We are capable lawyers experienced in REIT financing, real estate joint ventures, real estate leasing, land use, and development, like-kind exchanges, REIT workouts, and restructurings.
Our business lawyers in Waco are highly experienced in real estate transactions involving commercial and residential matters. If you want to discuss your formation of a REIT or your investment in a REIT, please contact a Waco business lawyer about your REIT at 254-753-6437.
Carolina G. Truesdale graduated from Texas Tech University School of Law, Cum Laude, where she discovered her passion for serving families during difficult times.
Mason Dunnam won his first jury trial the day after becoming licensed to practice law. He became a lawyer to fight for the little guy.
Eleeza Johnson has been a member of Dunnam & Dunnam since 2015 and is currently designated as Of Counsel.
Andrea Michelle Mehta became a lawyer to help people navigate the legal world. She loves her work and the people.
Gerald Ray Villarrial has an important goal – to be remembered as someone who cared about people and changed lives through his skill as an attorney.
Jim Dunnam is a Board Certified Specialist in both Civil Trial Law and Family Law. Jim was born and has spent his entire life in Waco.
Merrilee Harmon is a Family Law specialist, Board Certified by the Texas Board of Legal Specialization since 1985.
Vance Dunnam, Jr. graduated from Baylor University in 1974 with a Bachelor of Business Administration degree and a major in accounting and from Baylor Law School in 1977 with a Juris Doctor degree.
Vance Dunnam has 60 years of experience as a lawyer in Waco, Texas, handling all types of cases in both the office and the courtroom.
Copyright © Dunnam & Dunnam, L.L.P. All Rights Reserved. Prior results do not guarantee a similar outcome. Dunnam & Dunnam LLP maintains this website to provide you with general information concerning itself and its attorneys, as well as to facilitate communications with persons and entities possibly desiring to establish an attorney-client relationship with a law firm or an attorney. Information provided by and through this website does not create any kind of attorney-client relationship with Dunnam & Dunnam or any of its attorneys and, furthermore, does not constitute and should not to be relied upon by you as any kind of legal advice or service by Dunnam & Dunnam or any of its attorneys. Dunnam & Dunnam L.L.P. assumes no liability for the use or interpretation of information contained herein. This publication is provided “AS IS” WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT.
