REIT or LLCs with multiple investors?

[Brian06]

I understand how a properly structured LLC can protect my singe property. But is a REIT something I should pursue if I am going to have multiple investors each putting in different amounts towards future investments? And does that protect the investments as much as an LLC would?

[BLL11]

@Brian06 post:1

I understand how a properly structured LLC can protect my singe property.

I’m curious how an LLC can protect property it owns. Typically, they are used to protect assets by isolating them from others, much in the same way a prison protects society from convicts as opposed to protecting the convicts. Aside from charging order protection, they offer nothing to the assets they own.

@Brian06 post:1

But is a REIT something I should pursue if I am going to have multiple investors each putting in different amounts towards future investments?

It is if you plan to go public or conduct multi-million dollar deals. Otherwise, the benefits would not justify the cost of compliance.

@Brian06 post:1

And does that protect the investments as much as an LLC would?

Protection from what? If you mean limiting liability of the investors, a REIT would be superior to an LLC.