Hello everyone,

I need some guidance. I have a group of friends made up of porfessionals who have money to invest. We would like to pool our resources and get into to some commercial relestate. Should we start up an incorporated company and all become share holders? How would we assign a board of directors? What happens if someone wants to get out?

Any advice would be much appreciated.

I have seen models for this particular type of partnership company. It's been done LOTS of times before.

I would suggest that allocations of shares is best, but there's people who offer advice on how to set up that type of outfit. You'll need to see a lawyer eventually, but an accountant who has direct experience in that would be your first stop.

An 'exit' agreement is vital for each partner/shareholder, otherwise it gets to be a tangle if someone wants out.

Salary, benefits and profit allocations should be agreed on PRIOR to creation of the company.

Be careful about what you sign. It does happen that company directors who sign agreements for example to hire, borrow funds, lease etc, are left holding the bag later when the company collapses, if it does.

An accountant (only with DIRECT experience in such corporates) can advise on all those matters.

Most people who enter partnership enterprises are intensely focussed on the profits they might make rather than the nuts and bolts of how the whole thing will work for (or against) them.

Find someone who has done it all. You'll get some surprises. Don't go in 'blind'.

A great deal of the advantages of investing in real estate come from the pass through of expenses to the investor(s). Talk to an accountant and a lawyer to get advice on limiting liability while maintaining "pass through". LLC's limited partnerships and S Corporations all have something to offer.

Get good, sound, professional advice in the beginning. This kind of venture rests more on the quality and structure of the foundations they are built on than most.

HAHA! I guess it's true, "Be careful what you wish for. You might just get it!"

You know, instead of handing out flyers, you might want to try a few ideas here.

Try asking different stores, beauty shops, lawn shops, doctor's offices, etc., if you can leave at least one flyer if not more for people to pick up.

Another idea is to check with the postal service on how much bulk mail would run you. I cannot remember or I would tell you.

One last idea is to see how much it would run you to cover a certain region with something like the Pennysaver to have a flyer go out at least once a month in with their mailings.

There are a number of ways to do that and you can figure out your cost along the way and still make money.

Oh and one last bit of advice! I walk INTO the places of business and ask. I NEVER do it by phone. Face to face contact is the best way to get a positive response. Not always but more times then not by phone!