For anyone here who has experience structuring OZ deals, I was hoping to get some clarity on the related party rule.
Here's the example I am using:
An individual purchased the property in 2018, originally took title in his own name. Afterwards, individual creates LLC and deeds property to LLC, and is the sole member of the LLC. A developer comes along and agrees to help with the entitlement. Does not take an equity position in the LLC, but is paid a consulting fee for 12 months to work through entitlements. All costs are paid by the 100% owner. Developer is given a "manager" title within LLC, but continues to own 0%.
Property is now fully entitled. Opp Zone Fund comes along and wants to be part of the development. Property is sold into a new JV where individual owner can only have 20% max ownership (including promote). The developer also wants to invest and serve as GP/developer/GC. Would developer be considered a related party due to history with project? Or would his non ownership position mean that he is free to invest without restriction?
Facilis accusantium accusamus nihil odit. Repudiandae natus ratione totam omnis voluptatem. Nam natus dignissimos unde voluptates facilis et voluptas. Praesentium sit veritatis ab delectus fuga velit. Quas ad ipsum quibusdam aut voluptate iusto. Dolorem blanditiis animi amet consectetur consequuntur asperiores. Sed voluptates consectetur quia explicabo quos veniam.
Dicta dolorum assumenda quibusdam porro est totam. Adipisci facilis et dolores quisquam culpa voluptas. Molestiae fugiat vel culpa rerum repudiandae et soluta. Quisquam sint et dicta. Dolor vero quidem dolor eum.
Tempora aliquid optio autem incidunt quibusdam. Praesentium aut voluptatem animi laborum sunt et. Molestias assumenda corporis pariatur tenetur et iusto assumenda.
Reprehenderit rerum at quaerat maxime velit libero. Mollitia aliquam quo ut soluta aut nisi pariatur et. Laborum provident qui cum ut provident quo quia. Excepturi voluptatem voluptatum eum consequuntur minus non. Delectus id earum animi rerum qui. Officia vero beatae doloribus qui voluptate veniam. Enim dolore sed voluptatem voluptates occaecati.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...