You’re a sophisticated investor that knows the value of creating specific structures and processes in regards to your commercial portfolio. A tool sometimes used is a special purpose entity (SPE) which we will explore below.
MUST-HAVE STRATEGIES FOR REAL ESTATE INVESTORS. RELEVANT AND TIMELY INFORMATION THAT GIVES YOU THE EDGE.
FULFILLING A NARROW PURPOSE
A tool used by real estate developers and commercial real estate owners to create attention to attract lenders, a special purpose entity or SPE is supposed to increase or promote the feasibility of “financing” for a specific project. When an investor looks at a plan to present to a lender in this way, they want to include specific provisions that will prevent certain circumstances from happening such as a foreclosure. We will touch upon what the characteristics of an SPE are and how best to use one.
LET'S TALK TODAY!
Our Firm Looks Out For Our Clients
WHAT LEGAL ENTITY IS NEEDED AND CHARACTERISTICS
When creating the provisions that will need to secure financing, the operating agreement (in the case of a limited liability company LLC) or limited partnership (LP) agreement will provide the relationship between the lender and borrower. There are times when a lender would want to have a brand new entity for this purpose as to shield adverse events from any previous dealing with other parties.
Here are some other characteristics of SPEs to consider:
EVERY LENDER IS DIFFERENT
Creating a special purpose entity (SPE) has many details to consider whether its to favor both the actual members over other parties, separating assets from one’s portfolio or making investments attractive to potential investors. We have the depth and breadth of knowledge and past expertise in the field of SPEs and want to discuss how they could fit your current investment portfolio.
Contact Our Carmel Real Estate Attorney For Discussing Your Investment Strategy.
To schedule your no-obligation case evaluation to discuss SPEs, please contact our Indiana real estate attorney from our firm today!
LET'S TALK REAL ESTATE TODAY!
We Speak In Your Acquisition and Disposition Langaguge.
WEBSITE USE AND DISCLAIMER. By using this site, the User understands and agrees that Attorney Jeffrey J. Jinks is licensed only in the State of Indiana and information on the site may not be valid in other jurisdictions. All information is for information purposes only and is not legal advice to the user.
No attorney client privilege or relationship is created by the use of the site or the transmission and receipt of information without an express agreement between the user and Attorney Jeffrey J. Jinks. The information on the site should not be relied on, and the user should take no action, nor refrain from taking action, without first seeking legal or other professional advice for their specific situation. Do not send confidential information through this site, nor through email.
Any links to other sites are intended as possible aids to the user and are not intended or implied that the firm sponsors, is affiliated or associated with, endorses or is legally authorized to use any any trade name, mark, logo, seal or copyrighted symbol that may be reflected in the links. Those sites are not under the control of Attorney Jeffrey J. Jinks and he is not responsible for the content on or through those sites.
The information on this site may not reflect the most current legal developments, verdicts, case law, code revisions, regulatory updates, private letter rulings or other changes in the law and is not guaranteed to be correct, complete or up to date. The information on this site should not be taken as a promise, guarantee or indication of future results or benefits.
IRS CIRCULAR 230 NOTICE. We are required by Treasury Regulations (Circular 230) to inform you that, to the extent that this communication concerns federal tax issues, this communication (including links, attachments and enclosures) was not written or intended to be used, and cannot be used, for (1) avoiding federal tax penalties, or (2) promoting, marketing, or recommending to another party any transaction or matter addressed herein.
MATTERS IN THE STATE OF FLORIDA TO BE PROVIDED BY THE FIRM’S EMPLOYEES, INDEPENDENT CONTRACTORS AND CO-COUNSEL DULY LICENSED TO PRACTICE LAW IN THE STATE OF FLORIDA.