Creating a Real Estate Investment Trust (REIT) in the private lending industry can offer several advantages. However, one crucial requirement to maintain REIT status is to have a minimum of 100 equity holders by a specific deadline. The REIT 100 Investor Test is a landmark standard in the industry that determines eligibility for REIT status.
Key points from the article include:
– REITs provide numerous benefits for private lenders in the real estate sector.
– Maintaining REIT status is contingent upon meeting the REIT 100 Investor Test.
– The test requires a company to secure at least 100 equity holders by a specific deadline.
– The deadline for meeting this requirement is typically January 30 of the following tax year after electing REIT status.
For private lending firms considering REIT status, meeting the REIT 100 Investor Test is crucial to obtain and retain the benefits associated with REITs.
You can read this full article at: https://geracilawfirm.com/meeting-the-reit-100-investor-test/(subscription required)
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