RealFi – REITS: Our Real Estate Investment Trusts
The RealFi Real Estate Investment Trust may serve as an excellent way for you to add value to your real estate portfolio.
Real estate investment trusts (REITs) are a vital part of the US economy as well as local communities. With an REIT, however, your money works for you instead of you working for it.
Currently, rent collection has normalized for REITs—with the exception of those that invest in mall properties. Now, on-time rent collection rates have returned to the industry-standard 90%.
The rest of the economy is still recovering from the pandemic. REITs, however, have weathered the storm.
To learn more about the RealFi REIT, keep reading.
What Is an REIT?
An REIT is a company that operates, owns or finances income-producing real estate. This kind of company gives
investors an alternative way to profit in the real estate industry.
The nation’s REITs help communities thrive. They also revitalize underserved areas. By investing in an REIT, you can earn dividend-based income and returns.
With an REIT, you can invest in real estate as you would in any other industry. Instead of buying property, you’d buy stock in the REIT. Then, you’d retain a share of the income produced by the company.
However, REITs enable you to bypass purchasing real estate. When you invest in an REIT, you also avoid the work involved with financing and managing a property.
REITs are a part of many 401(k) and investment one portfolios. Resultantly, more than 145 million consumers invest in REIT stocks.
REITs operate using a straightforward and easy-to-understand business model. These companies lease space and collect rent for real estate.
They’ll then generate an income that the REIT will distribute to shareholders. Shareholders will then receive the earnings in the form of dividends.
An Overview of REITs in the United States
There are $3.5 trillion in gross REIT assets across the United States. $2.5 trillion of those assets are listed on the nation’s stock exchange.
Estates under REIT management in America represent more than half a million properties. Together, these properties have an equity market capitalization of more than $1 trillion.
REITs invest in many kinds of real estate. For instance, an REIT might invest in:
• Apartment buildings
• Cell phone towers
• Medical facilities
• Municipal infrastructure
• Retail spaces
• Residential real estate
Most REITs focus on a specific kind of property. However, some may invest in multiple property types.
In the US, REITs must pay out a minimum of 90% of its taxable income to shareholders. However, most distribute 100% of their income. The shareholders will, in turn, pay taxes on their dividends.
Over time, REITs have delivered competitive returns. They offer a steady, high-dividend yield. REITs also provide considerable long-term capital appreciation.
Other investment vehicles perform comparatively low. Accordingly, REITs are an excellent vehicle for diversifying your investment portfolio.
REITs help to reduce overall portfolio risk. More importantly, they can help to increase your returns.
Choosing the Best REITs for Income
REITs are a great way to add real estate to your investment portfolio. However, some REITs offer higher yield dividends compared to others.
Still, it’s essential to understand the nature of REITs. By understanding how REITs work, you can select the best REIT mutual funds to meet your needs.
Outside of the stock market, REITs are illiquid assets. In other words, you cannot sell an REIT if you need to raise money quickly.
Still, the market price of a publicly-traded REIT is easily assessable. The high-yield dividends provided by REITs make some attractive to investors.
However, it’s vital to choose an REIT that looks out for your best interest. Some REITs have an external manager. This arrangement can lead to potential conflicts of interest.
For instance, an REIT might pay the manager considerable fees. The company may base the fees based on the value of property acquisitions and assets the manager oversees.
However, this kind of arrangement may not necessarily align with your interests. Accordingly, it’s vital to select an REIT that you can trust.
For example, the RealFi REIT ensures that its practices align with the interests of stakeholders.
The RealFi REIT: Investing for Stability
During the last two decades, the RealFi REIT has provided many mortgage loans successfully. More importantly, we’ve issued approximately 95 of those loans over the last two years. We continue to build the value of our REIT despite the unprecedented disruption of the global economy.
Furthermore, our REIT continues to perform well into the first half of this year. We’ve enjoyed this level of success because we know how to choose the right deals and the right people.
At RealFi, we’re experts in evaluating risk and generating consistent returns for our stakeholders. We find that this task requires turning down deals more often than accepting them.
We know how to protect stakeholders’ capital. Our Leadership believes that our track record speaks for itself.
In addition, we maintain a viable exit strategy for every deal. In this way, we can protect the profits of investors.
Furthermore, most debt securities cap returns at a fixed coupon rate. However, RealFi offers a variable payment structure that enables stakeholders to participate in the entire net cash flow of our assets.
Accordingly, we offer one of the best remits among REITs in the industry. The remits are the profits that we pay to our REIT shareholders in the form of dividends.
Putting Your Capital to Work With ReaFi
In early 2020, the stock market exhibited remarkable gains. As this event unfolded, however, COVID-19 brought the stock market to a crashing halt.
The most significant economic downturn since the Great Depression unfolded. At the same time, the nation was rocked by the most extensive unrest surrounding racial injustice and equality in our generation.
In the midst of this turmoil, the RealFi REIT continued to perform. We believe that this performance is a testament to the stability of our REIT portfolio. In an extremely volatile market in nearly every investment class, our REIT continues to deliver.
In part, the RealFi REIT continues to perform exceptionally because we ensure that our interests are aligned with the considerable investments made by our principals. We accomplish this feat by ensuring the alignment of interest between our managers and limited partners.
For example, we provide managerial compensation based on performance. Furthermore, we continue to revise our management practices continually. In this way, we ensure that the interest of our stakeholders, our company and managers stay aligned to deliver the best return for investors.
In addition, we outsource all administrative and reporting functions. We provide the highest quality portfolio monitoring and performance measurement.
Our reporting specialists contribute to the performance of our REIT by providing accuracy and full transparency. Furthermore, they provide complete clarity regarding the practices of our operation.
Meeting Your Long-Term Real Estate Goals With the RealFi REIT
At RealFi, we understand that investing exposes stakeholders to risks, hence the handsome returns. Our stakeholders benefit greatly from the diversification of our portfolio as our asset holdings expand.
As the calendar marches on, our mortgage loans and REIT portfolio continue to grow. As these events unfold, we’ll continue to diversify our portfolio across geographical markets and borrowers.
We also diversify our REIT portfolio by investment type. Furthermore, we’ll explore any other possible ways to ensure financial safety for our principals.
For instance, we believe in targeting both value and growth-oriented markets. Currently, the market in the Southeastern United States has potential for phenomenal growth. In fact, the area has the potential to outperform the real estate market as a whole.
Today, areas such as Georgia, the Carolinas, Tennessee and Florida are all poised for substantial growth. Now and for the foreseeable future, these areas will likely outperform the real estate market across the rest of the nation.
Furthermore, we forecast an imminent credit crunch. Many commercial mortgage holders are overleveraged. Others have ownership issues.
For these reasons, we believe that an opportunity is emerging to purchase commercial debt instruments at substantial discounts. Accordingly, now is a great time to take a closer look at the RealFi REIT.
Let’s Talk About Building Your Net Worth
Now you know more about the RealFi REIT. Hopefully, you have a better idea of how our REIT can help you meet your long-term investment needs.
RealFi is one of the top technology-driven alternative investment firms in the nation. We specialize in real estate strategy. Furthermore, we combine an innovative approach to asset management with highly skilled personnel.
With our state-of-the-art technology and in-house expertise, we’ve transformed the mortgage lending process. More importantly, we focus on building relationships. We’re experts in providing customized financing solutions.
As a leading direct lender in the United States, we forecast strong growth for our REIT. Contact RealFi today at (800) 601-1917 or connect with us online to learn more about enjoying stable and consistent returns for your capital.
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