Comments on: Can investment clubs/groups purchase real estate or just stocks and mutual funds? http://www.INVESTMENTSMUTUALFUNDS.COM/can-investment-clubsgroups-purchase-real-estate-or-just-stocks-and-mutual-funds/ INVESTMENTSMUTUALFUNDS.COM Sat, 19 May 2012 05:37:46 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: ack http://www.INVESTMENTSMUTUALFUNDS.COM/can-investment-clubsgroups-purchase-real-estate-or-just-stocks-and-mutual-funds/comment-page-1/#comment-237 ack Fri, 25 Jun 2010 17:17:15 +0000 http://www.INVESTMENTSMUTUALFUNDS.COM/can-investment-clubsgroups-purchase-real-estate-or-just-stocks-and-mutual-funds/#comment-237 The most important thing that you need to understand is the role of a Prime Broker and how transactions with executing brokers work. A prime broker is the clearing broker for most trades for hedge funds. They also provide leverage to hedge funds. You'll be getting information directly from the Prime Broker. Big hedge funds will have more than one prime broker. All executing brokers "give up" their trades to the prime broker. The prime broker is typically involved in resolving trade discrepancies, "don't know" trades, and other problems. They also collect and distribute all dividends, coupons, and other cash flows. They also handle "re-org" events like mergers, spinoffs, and tender offers. Cash reconciliation typically is straight forward, except when you have "problem" transactions. So, you can see that most of the "problem" transactions will require you to interface with the prime broker. Strachman's book has a good section on prime brokers. The most important thing that you need to understand is the role of a Prime Broker and how transactions with executing brokers work. A prime broker is the clearing broker for most trades for hedge funds. They also provide leverage to hedge funds. You'll be getting information directly from the Prime Broker. Big hedge funds will have more than one prime broker.

All executing brokers "give up" their trades to the prime broker. The prime broker is typically involved in resolving trade discrepancies, "don't know" trades, and other problems. They also collect and distribute all dividends, coupons, and other cash flows. They also handle "re-org" events like mergers, spinoffs, and tender offers.

Cash reconciliation typically is straight forward, except when you have "problem" transactions. So, you can see that most of the "problem" transactions will require you to interface with the prime broker. Strachman's book has a good section on prime brokers.

]]> By: bitz http://www.INVESTMENTSMUTUALFUNDS.COM/can-investment-clubsgroups-purchase-real-estate-or-just-stocks-and-mutual-funds/comment-page-1/#comment-142 bitz Wed, 23 Jun 2010 13:39:36 +0000 http://www.INVESTMENTSMUTUALFUNDS.COM/can-investment-clubsgroups-purchase-real-estate-or-just-stocks-and-mutual-funds/#comment-142 Vijaya Bank can go upto Rs 74: Thacker: Mitesh Thacker, Technical Analyst of miteshthacker.com is of the view that... Vijaya Bank can go upto Rs 74: Thacker: Mitesh Thacker, Technical Analyst of miteshthacker.com is of the view that…

]]> By: gran http://www.INVESTMENTSMUTUALFUNDS.COM/can-investment-clubsgroups-purchase-real-estate-or-just-stocks-and-mutual-funds/comment-page-1/#comment-108 gran Tue, 22 Jun 2010 10:39:02 +0000 http://www.INVESTMENTSMUTUALFUNDS.COM/can-investment-clubsgroups-purchase-real-estate-or-just-stocks-and-mutual-funds/#comment-108 search meetup.com search meetup.com

]]> By: edulancill http://www.INVESTMENTSMUTUALFUNDS.COM/can-investment-clubsgroups-purchase-real-estate-or-just-stocks-and-mutual-funds/comment-page-1/#comment-84 edulancill Mon, 21 Jun 2010 22:47:44 +0000 http://www.INVESTMENTSMUTUALFUNDS.COM/can-investment-clubsgroups-purchase-real-estate-or-just-stocks-and-mutual-funds/#comment-84 The estate pays the estate tax. This is done BEFORE any beneficiary gets a bequest. There is no federal inheritance tax. Very few states have one. The estate pays the estate tax. This is done BEFORE any beneficiary gets a bequest.

There is no federal inheritance tax. Very few states have one.

]]> By: pumpedanddumped http://www.INVESTMENTSMUTUALFUNDS.COM/can-investment-clubsgroups-purchase-real-estate-or-just-stocks-and-mutual-funds/comment-page-1/#comment-13 pumpedanddumped Fri, 28 May 2010 21:36:24 +0000 http://www.INVESTMENTSMUTUALFUNDS.COM/can-investment-clubsgroups-purchase-real-estate-or-just-stocks-and-mutual-funds/#comment-13 The investments made by an investment club/group are only limited by the organizational documents of the organization. Many investment clubs are organized as LLCs. If you want your club to be able to be able to buy real estate, just include that in your operating agreement as a permitted business activity. Under state law, LLCs can engage in any legal business activity unless you restrict it in your organizational documents. You probably want to restrict it to making investments. To organize, you simply file Articles of Organization (called different things in different states) with the secretary of state in which you are organizing. It is usually more cost efficient to organize in your home state. After that, you will need to adopt an operating agreement to bind the members and to set forth the types of investments which can be made (virtually any). You may want to restrict investments in hedge funds or the like, but I would probably leave this pretty broad. betterinvesting.org is an excellent resource for setting up investment clubs. For setting up the LLC, you might want to get an attorney or just go to the secretary of state's website and get their form. The rubber will meet the road in the Operating Agreement that you will want all members to sign. That's where you must be careful. The investments made by an investment club/group are only limited by the organizational documents of the organization. Many investment clubs are organized as LLCs. If you want your club to be able to be able to buy real estate, just include that in your operating agreement as a permitted business activity. Under state law, LLCs can engage in any legal business activity unless you restrict it in your organizational documents. You probably want to restrict it to making investments.

To organize, you simply file Articles of Organization (called different things in different states) with the secretary of state in which you are organizing. It is usually more cost efficient to organize in your home state. After that, you will need to adopt an operating agreement to bind the members and to set forth the types of investments which can be made (virtually any). You may want to restrict investments in hedge funds or the like, but I would probably leave this pretty broad.

betterinvesting.org is an excellent resource for setting up investment clubs. For setting up the LLC, you might want to get an attorney or just go to the secretary of state’s website and get their form. The rubber will meet the road in the Operating Agreement that you will want all members to sign. That’s where you must be careful.

]]> By: asajous http://www.INVESTMENTSMUTUALFUNDS.COM/can-investment-clubsgroups-purchase-real-estate-or-just-stocks-and-mutual-funds/comment-page-1/#comment-12 asajous Fri, 28 May 2010 21:02:33 +0000 http://www.INVESTMENTSMUTUALFUNDS.COM/can-investment-clubsgroups-purchase-real-estate-or-just-stocks-and-mutual-funds/#comment-12 Of course. Of course.

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