E14: AIME Management Entity FAQ - Organizing an Asset Management Company

Alt Investing Made Easy

In this episode of Alt Investing Made Easy, hosts Roland and Sarah discuss the complexities of alternative investing, particularly in commercial real estate. They delve into the importance of selecting the right structure for the manager of the investment company, the implications of state tax laws, and the necessity of clear governance in management entities. The conversation emphasizes the need for proper planning and transparency to ensure successful investment outcomes.

Credits and Contacts:

Sponsored by:
Real Advisers, Austin, Texas

Special thanks to:

Grable Martin PLLC

Red Sun Creative, Austin, Texas

For more information: AltInvestingMadeEasy.com

Please contact us: [email protected]

Roland Wiederanders: [email protected]

Sarah Florer: [email protected]

Disclaimer: “This production is for educational purposes only and is not intended as investment or legal advice.”

© 2024 AltInvestingMade Easy.com LLC All rights reserved

Takeaways

• Choosing the right structure for the manager is crucial for real estate projects.
• Forming a separate management entity can provide liability protection.
• Disclose all management and profit-sharing arrangements to investors.
• State tax laws can complicate entity formation and management.
• Simplifying entity management is key for new syndicators.
• Governance issues can arise in management entities, requiring clear agreements.
• Branding your management entity can enhance investor confidence.
• Succession planning is essential for long-term management success.
• Understanding the nexus analysis is important for state tax obligations.

Chapters

00:00 Introduction to Alternative Investing

02:52 Choosing the Right Manager for Real Estate Projects

10:40 Structuring the Management Entity

14:15 State Tax Considerations in Entity Formation

21:10 Simplifying Entity Management for New Syndicators

27:35 Governance and Control in Management Entities