We Are Putting Together a REIT!
Real Estate Investment Trusts Have Been PROVEN to Perform Better than Stock, Bonds, and Mutual Funds!
A Private REIT, sometimes called a private placement REIT, is a type of Real Estate syndication offering that is exempt from SEC registration under Regulation D of the Securities Act of 1933 and whose shares intentionally do not trade on a national securities exchange.
Private REITs generally can be sold only to institutional investors, such as large pension funds, and/or to “Accredited Investors”, generally defined as individuals with a net worth of at least $1 million (excluding primary residence) or with income exceeding $200,000 over two prior two years ($300,000 with a spouse).
Perhaps the most important thing, other than return on investment, to consider regarding investing in a REIT is it’s lack of Liquidity. Since we are dealing with real estate, shares are not traded on a public securities exchange and are not generally liquid. We plan to have various redemption options available to our investors.
We are still developing the plans for these REITs, but are tending toward a model that uses Reg D 506 (d) syndication; this model allows up to 35 “Sophisticated Investors” per REIT.
What YOU Should Know About REITs
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Liquidity
- As mentioned above, real estate investments tend to be considered a Non-Liquid Investment. It is our plan to have multiple redemption options available to our clients in order to make the REIT competitive and successful.
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Minimum Investment Amount
- Typically $1,000 – $25,000. Self directed RothIRAs, Coverdell accounts, and 526 Accounts may qualify under certain circumstances.
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Transaction Costs
- It is our goal to keep brokerage costs to a bare minimum, but may include formation fees, annual management fees, and a small percentage of profits in the form of a “promoted interest”.
Would You Like More Information?
First things first, YOU MAY NOT QUALIFY, and secondly, WE MAY NOT BE ABLE TO TAKE YOU as an investor.
The Securities and Exchange Commission has some VERY strict Rules concerning REITs and Investments of this type
And we have absolutely NO intention of getting into hot water with them.
This is NOT a solicitation for investors, but merely a way for us to be introduced, let us find out if you qualify to Invest with us, and let you decide if this sort of Investment Vehicle is right for you.
Our Promise:
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