How do I invest?

Non-Traded Investments require a paper application to gather your information.  It is best to meet with one of our representatives to fully understand the features of the investment(s) that interest you.  There are certain requirements that must be met with respect to your investment profile.  Please contact us to invest.  The investments can be held direct for non-qualified investments, and with approved custodians for qualified retirement accounts.  To invest requires receipt and review of the corresponding prospectus or private placement memorandum, and the paperwork.

What is the minimum?

The minimum depends on the investment vehicles, but many non-traded publicly registered REITs offer minimums of $2500, while the accredited investments often start at $25,000, $50,000, or $100,000.

What is a REIT?

A real estate investment trust or REIT is a tax designation for a corporate entity investing in real estate. The purpose of this designation is to reduce or eliminate corporate tax. In return, REITs are required to distribute at least 90% of their taxable income into the hands of investors. A REIT is a company that owns, and in most cases, operates income-producing real estate. REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and even timberlands. Some REITs also engage in financing real estate. The REIT structure was designed to provide a real estate investment structure similar to the structure mutual funds provide for investment in stocks. REITs can be publicly or privately held. Public REITs may be listed on public stock exchanges. REITs can be classified as equity, mortgage, or a hybrid.

What are Real Assets?

Real assets are characterized typically by investments in tangible “hard” assets that provide a blend of stable income, equity-like upside potential, inflation hedging, lower volatility and, in general, low correlations to the two current “traditional asset classes”—equities and fixed income.

What is a 1031 Exchange?

Tenants in common 1031 Exchange is a form of real estate asset ownership in the United States in which two or more persons have an undivided, fractional interest in the asset, where ownership shares are not required to be equal, and where ownership interests can be inherited. Each co-owner receives an individual deed at closing for his or her undivided percentage interest in the entire property. In brief, a TIC owner has the same rights and benefits as a single owner of property. Although the TIC ownership form has been used for many years, its popularity has been increasing dramatically due to a recent IRS ruling. Exchangers often have difficulty in locating and closing suitable replacement property within the 45 day identification period and the 180 day closing period. 1031 TIC exchanges can significantly reduce these risks. [Please be advised:  There are risks associated with 1031 Exchanges, including restrictions outlined in the Internal Revenue Code and costs associated with the transaction that may impact an investor’s returns and may outweigh the tax benefits.]

What is Triple Net?

A triple net lease (Net-Net-Net or NNN) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three “Nets”) on the property in addition to any normal fees that are expected under the agreement (rent, premises utilities, etc.). In such a lease, the tenant or lessee is responsible for all costs associated with the repair and maintenance of any common area. This form of lease is most frequently used for commercial freestanding buildings.

Valuation of REITs

A special metric called Funds From Operations (FFO) is used by REIT investors and analysts to evaluate REITs instead of relying on standard financial metrics like net income or EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization). FFO is obtained by adding back expenses like depreciation to net income and excluding any income derived through the one-time sale of assets.  FFO = Net income + depreciation – gains from sale of assets.  FFO is preferred as a valuation metric because it gives a better picture of cash flow from operations than net income, which includes non-cash related expenses such as depreciation and amortization. Some analysts prefer to use another metric called Adjusted FFO, which subtracts capital expenses that are required to maintain the portfolio of properties and amortization from net income to give an even better picture of true cash flow generated from operations. Capital expenditure or Capex is normally added to the value of an asset on the balance sheet and then depreciated on the income statement over the life of the asset.