How do you start a real estate investment trust?

The rules a a little different by country, but here are the US rules.
1. Be structured as a corporation
2. Be managed by a corporate board
3. Have transerferable shares or certificates
4. Be taxable as a domestic corporation
5. Not be a financial institution
6. Have 100 or more owners
7. Distribute at least 90% of taxable income as dividends
8. Derive 95% of income from dividends, interest and property
9. At least 75% of assets must be in real estate
10. At least 75% of gross income must come from rent or mortgage interest
11. No more that 20% of assest in taxable subsidiaries.

These rules are set forth in the internal revenue code, so to start one I would think you'd want to seek the services of attorneys and accountants.

You can be private or public. To conform to the special tax advantages, you need to comply with IRS rules regarding dividend payouts along with other requirements. A lot of REITs are switching from public to private now.

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