As someone who is all ready involved in rental's and home flipping I am not sure how you can work this.
Will every share holder be a "active" owner or are you operating the fund and everyone else is a passive owner?
What will the legal doc's look like? I understand that the LLC will be listed on the property title but how do you tie the investors of the LLC to the LLC. Typically they would come and sign some documents and verify who they are while getting this notarized.
If every shareholder is a active owner then they also get the tax liabilities associated with the property not to mention the benefits. Who do you determine who gets what where?
I am slightly out of my element here because the business I have done is the past has just been with my money which makes it much easier. I had given everything you stated some thought months ago but I do not know a way you can structure to define clear ownership, roles and tax implications good/bad. I have access to a good real estate lawyer that I have worked with for years and a tax guy that could be straight out of Dragnet.
With the above being said their is money to be made here but how you will structure it and show investor ownership VIA a UIA on a title through a LLC without some paperwork from the owners of the UIA will make any lawyer cringe at the thought.
It is definitely not an easy thing to try to tackle. I am about to message my mentor with this idea to see what he thinks about it. Below are his credentials:
Bank Examiner for FDIC
Owner of a Mortgage Company & Private Mortgage Brokerage/Servicing
Real Estate Broker
Appraised Residential & Commercial
Appraised Privately Held Mortgages/Installment Contracts for the State of Missouri
Note Broker
Creditor's Representative Federal Bankruptcy Court
Commissioner of a Large Public Housing Authority
Executive Director of Non-Profit Housing Development Entity
Chair of Municipal Housing Rehabilitation & Redevelopment
Board of Directors Habitat For Humanity Affiliate
Too many years to touch on here and over a 1,000 deals!
Investing since 1974
The founding UIA will be the simplest part of this whole idea. It will be a LLC where investors use bitshares instead of cash. Also, it will allow people from around the world to participate. The only hard part about it will be securing personal information needed to finalize all the documents. Off the top of my head, utilizing a trusted lawyer may be the only way to do this. I'm still investigating.
The deal UIAs are where things get tricky. I'm still investigating the best way to tie in deal UIA investors. A joint venture is the leader so far.