Real Estate Reg D Offerings

Reg D Capital Raising for Real Estate

[fb_button]Since one of the choices on a Form D is “Tenants in Common” it’s obvious that real estate can be considered a security. That aside, most real estate investors use part cash and part financing on projects.

Regulation D has long been used by savvy real estate developers who take private investments from local private investors. With particularity, Reg D Rule 506(c), the newest addition to Reg D via the Jobs Act, opens up a whole new window of opportunity.

Any amount of money can be raised using this rule: $25,000 to $25B, the amount is unlimited. An offering can be structured the same way any other offering is structured. Debt (private loan), equity (selling shares of your company, or shares of ownership in the property), or a combination of debt and equity.

Most of these entities are set up as Limited Liability Companies for tax purposes, and sell Units (or shares) of Membership. We have a simple layout in our Real Estate Fund PPM which also includes most of the business planning elements.

The offering is prepared and filed like any other Reg D Offering as follows:

  1. Construct the PPM
  2. File your Form D
  3. Collect investments
  4. File your state forms
  5. Close your offering
  6. Use your investment capital

About the Author

506 Docs StaffWilliam D. Kyle, founder and Managing Member, possesses more than 35 years of experience consistently delivering exceptional valuation, market share, profit and business growth within rapidly changing environments. Possessing strong decisive executive leadership, Bill’s experience transcends organizations from start-ups, including Flight Dynamics, Inc. [acquired by Honeywell] and FLIR Systems, Inc. to Fortune 1000 multi-billion dollar international companies including Groupe Bull and Zenith Data Systems. Customer focused and performance driven, Bill’s expertise includes strategic business development, capital acquisition strategies, strategic planning, marketing, sales and business development. As a senior-level executive, Bill has been instrumental in raising private investment capital, multiple IPO’s and P.I.P.E.s, reverse mergers and strategic acquisitions. An accomplished author, Bill has published several articles and was awarded the SAE Award for Technical Excellence for his article entitled, “Holographic HUDs in Commercial Aircraft.” While in the USAF, Bill was a select member of a USAF briefing team responsible for presenting multimedia presentations to Members of Congress and The President of The United States. Bill was a highly decorated USAF F-4 fighter pilot possessing over 2,000 hours in the F-4 including more than 325 combat hours during the Viet Nam War. Bill possesses a Bachelor of Science Degree in Accounting and a Master of Science Degree in Human Resource Management. Bill is also a member of The F-4 Phantom II Society, Order of Daedalians and Red River Valley Fighter Pilot Association.View all posts by 506 Docs Staff