Blog | David Austin Law

Real Estate Investment Strategies For Residential Rentals

June 10, 2024

Residential rentals can provide a good introduction to real estate investing. Before you jump in, it is important to carefully evaluate your long term goals, tolerance for risk, and timeline. These will all help you design the best legal structure to hold and protect your investment. Here are some common strategies used by residential real estate investors.

Fix and Flip: Renovating and Reselling Residential Real Estate

June 3, 2024

It has become common over the past several years for real estate investors to buy distressed properties, renovate them, and resell them at a profit. Commonly called a "fix and flip," this strategy can work extremely well if done properly. It's important to understand the process, risks, and essential steps of fix and flip investments before undertaking one yourself.

Safeguarding Your Real Estate Investments: Three Key Strategies

April 29, 2024

As we have seen over the past several years, safeguarding your real estate during a down market involves shielding your assets from legal risks, market shifts, and other uncertainties. These challenges require a proactive asset protection approach. Below, we outline three essential steps you can take to ensure the future security of your business.

What's a "Substantive Relationship"?

April 22, 2024

Defining who is part of the "general public" and who is not emphasizes the importance of pre-existing, substantive relationships with potential investors. At its core, the rule is based on trust between the investor and the syndicator, which is a fundamental part of unregistered, private market investments.

Understanding the Difference Between Rule 506(b) and 506(c)

March 11, 2024

Investors and businesses alike find themselves in a quandary understanding the dynamics of Rule 506, which was long the standard in the investment world. The rule offers an exemption to investors from the requirement of registering securities. Come 2013, a new rule was introduced - Rule 506(c), authorized by the JOBS Act (Title II), changing the landscape. With the old Rule 506 now rebranded as Rule 506(b), it's easy to get lost in the maze.

Where Should Real Estate Investors Should Create Their LLC?

February 14, 2024

Real Estate investors routinely form limited liability companies to hold assets. Owning real estate often requires registration in the state where the investment property is located, but investors are often lured by "business friendly" locations to take advantage of what they perceive are tax benefits and maintaining anonymity.

Piercing The Corporate Veil

February 5, 2024

Business owners often make a number of mistakes that can result in a court piercing the corporate veil. This could lead to personal liability for the owners, as the court may consider their business to be their "alter ego" rather than a legally separate entity. We outline the legal steps business owners need to take in order to protect themselves from being held personally liable for the debts and actions of their businesses.

In-Depth Look At The Corporate Transparency Act

December 20, 2023

Considering the complexity of the CTA and the continuous updates by FinCEN, it is crucial for companies to fully understand the reporting requirements.

New Year Corporate Hygiene

December 11, 2023

As a business owner or real estate investor, is likely the last thing you think you have time to do at the end of the year. However, it can easily be delegated to your outside legal counsel and accounting team.

Estate Planning During Retirement

November 13, 2023

As you approach retirement age, it's likely that you have amassed more than when you first started out. Moreover, you have gained a wealth of life experience that has shaped your goals and values. If you have children, they have now entered adulthood. This provides an opportune time to revisit your estate plan to reflect potential changes in your financial circumstances since the initial drafting of your documents, your long-term healthcare needs, and the implications of your children's transition to adulthood.

Frequently Asked Questions by Non U.S. Investors

Answers to commonly asked questions from Principals and Hong Kong founders.

Basics of Raising Capital in The United States

This guide addresses the first step, and provides a guide to the key considerations and practical steps that foreign companies must understand to effectively raise U.S. capital, from establishing an investable structure to creating a compelling narrative to successfully sealing an investment.

Post-Exit Capital Deployment: How Family Offices Reinvest After U.S. Liquidity Events

Hong Kong family offices that realize U.S. liquidity events face a complex reinvestment landscape. This article examines the tax, regulatory, and structural considerations that shape where and how post-exit capital gets deployed, from real estate and private equity to CFIUS review and entity formation.

Part 2: Navigating U.S. Real Estate as a Foreign Investor

This is the second part of a multi-part series on navigating U.S. real estate as a foreign investor. In this article, we examine states increasingly adopting restrictive laws on foreign ownership of real estate, leading to growing concerns over the economic consequences on these states’ economies.

Part 1: Navigating U.S. Real Estate as a Foreign Investor

This is the first part of a multi-part series on navigating U.S. real estate as a foreign investor. In this article, these state-level restrictions are examined and compared to federal oversight, along with detailing what foreign investors should do to navigate this complex and shifting legal landscape.

Part 2: Corporations, Blockers, CFCs, and Taxes for Foreign Investors

This is the second part of a multi-part series on the choice of entity for Foreign Investors.

Part 1: Why Foreign Investors Use Corporations Instead of Other Business Entities (like LLCs) as Holding Companies in the United States

Both LLCs and corporations are common entities used as holding companies for non-U.S. investors. Every state allows for the formation of LLCs and C corporations, regardless of ownership or location. Both entities limit owners’ liability for company actions and debts, and facilitate engagement in similar business activities. However, key differences in structure and taxation drive foreign investors to prefer corporations as U.S. holding companies.

Investing in Real Estate as a Millennial: A Comprehensive Guide

Investing in real estate as a millennial can seem daunting, but with careful planning and a solid strategy, it can lead to substantial financial growth and stability. According to a National Association of Realtors report, 37% of homebuyers in 2020 were millennials, highlighting the growing interest in real estate investment among this demographic. In this article, we outline a few key steps to get started.

The Pitfall of Retirement Plans and Your Trust

For most people, retirement savings represents a significant portion of their net worth. Many people want to know whether they should make their trust a beneficiary of their IRA, or transfer their trust into their IRA. An IRA is treated very differently from a simple savings account with respect to inheritance, and the general answer is that you not name your trust as the primary beneficiary of your IRA.

Family Offices and Commercial Real Estate Investment

Family offices, traditionally known for managing the financial affairs of wealthy families, are more frequently directing their attention to commercial real estate investments. This shift presents significant opportunities and challenges, positioning family offices as key players in the real estate market. Understanding the motivations and strategies of investing in commercial real estate as a family office is crucial in navigating this evolving landscape.