Use Unlisted or Private REITs for Real Estate Money
by Tyler G. Hicks
A REIT--REAL ESTATE INVESTMENT TRUST--can be your source
of money for real estate to:
- Buy, own, and collect rental income from almost any
type of real estate.
- Lend money on almost any type of real estate mortgage.
- Run a hybrid business--that is own, and lend on, real
estate of many types.
REITs OF ALL TYPES ARE HIGHLY POPULAR TODAY. People
feel safer with REITs than they do with the stock market. Why? Because the
value--namely the real estate--is always there! It doesn't go away, like a
company can. And a PRIVATE REIT:
- Can raise money from qualified investors at low cost.
- Need not give info on its operations to the public.
- Has little regulatory supervision compared to public firms.
UNLISTED REITs are similar to private REITs. But unlisted REIT
must report its results and operating data to more regulatory agencies. And
unlisted REITs can be wildly successful. Thus, one oustandingly well run
unlisted REIT is currently reported as:
- Raising more than $100-million a month at $10 per share.
- Buying office buildings worth over $1-billion last year.
- Paying its investors dividends in the 7% range.
YOU, TOO, CAN FORM YOUR OWN PRIVATE OR UNLISTED REIT. To form your REIT take these easy steps:
- Decide what type of REIT you'd like to form--unlisted or
private, equity, mortgage or hybrid.
- Write up a description of your REIT that will interest
investors. Why? Because if you're like most people you'll need
investors to supply the capital for your REIT.
- Get an experienced REIT attorney to advise you on how
you can raise capital from qualified investors. The attorney will
guide you through the steps needed to start your REIT
correctly, and run it properly and legally.
- Search for a suiltable property for your REIT. Look for top-
notch Class A properties. They're a safer investments and
usually provide a higher profit to your REIT.
- Try to keep your REIT's debt as low as possible. Then you
can pay higher dividends and attract more capital to buy more
good properties. You may even reach the investment income
mentioned above. Yes, private and unlisted REITs can be
profitable for the ambitious real estate wealth builder today!
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