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?
Voluptatem quis voluptate dolor maxime quidem quas perferendis ipsum. Illum a laborum optio nisi sapiente qui qui. Consequuntur ut autem alias vel praesentium. Hic neque cupiditate officiis et. Illum voluptate non veniam pariatur officia iste ea dolorem.
Ipsam aperiam quo cum ipsum. Voluptas laudantium ut ab aliquam aut. Neque quidem cumque et similique numquam dolore illo. Dolorem voluptatem esse perferendis voluptate voluptatem.
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...