Real Estate Investment Trusts


When you invest within a private real estate syndication, you are pooling your capital with that of other qualified investors for the purpose of investing in larger and more lucrative real estate projects.  This affords the lone investor an opportunity to participate with an organized group of like-minded investors in the ownership of a piece of revenue property that is too much to handle singly or in a joint venture with just one or two others.

Real estate syndicates own income-generating residential or commercial real estate and are secured by tangible assets as collateral.  This characteristic is untrue of many other investments and provides added security for your investment.  Additionally, investing in private real estate syndications provides the individual investor the ability to achieve higher profits with lower risk than the average equity investment.

Although a syndication’s legal structure can take many forms. it is generally accepted that a "Private" Real Estate Investment Trust (or, REIT for short) is one of the best forms of group ownership of real estate investments.

A REIT’s reliable income is derived from rents paid for the use of leased properties.  REIT’s own and manage pools of income-producing properties on behalf of investors who subscribe for REIT "units".  The net income is distributed to each investor in proportion to his or her share of the investment.  The incomes are kept stable through the practice of signing stable, long-term tenants to strong leases, and staggering the lease renewal dates to prevent vacancies from occurring all at once.

Compared with the average equity investments, REIT’s provide higher yields and lower risk, as the tax advantages result in higher yields.  The synergy produced by these traits make REIT’s a uniquely stable, reliable, and secure investment that can produce both income and growth.

A REIT is designed to create diversity, which secures the investor’s capital and keeps the income steady.  By combining a number of diverse properties in a single pool, the cash flow of each property is stabilized by the combined incomes of the other properties. 

REIT’s, over time, have demonstrated a consistent track record of providing the benefits of regular income, tax-efficient earnings, and the potential for long-term appreciation as the vale of the properties increase.  They are equities that derive their value from tangible assets and they have proven to bring balance, diversification, and greater risk/reward efficiency to a broad range of investment portfolios.