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Alternative Investment- Non-traded Real Estate Investment Trusts (REITs)

What Are Real Estate Investment Trusts? 

Non-traded REITs allow investors to participate in a pool of income-producing real estate such as medical buildings, single tenet retail buildings, shopping centers, offices, hotels and warehouses often leased to some of the largest corporations in the U.S.  These companies have decided to lease so that they can free up capital for other operations.  This provides investors the opportunity to receive rental income from some of the best known companies in America without the hassle of acting as a landlord!  To qualify as a REIT, a company must distribute at least 90 percent of its taxable income to shareholders.  Another benefit to investors is that REITs avoid double taxation.

  • Potential benefits of investing in non-traded REITs, including the potential for a consistent income stream and stability of principal, as well as potential capital appreciation and tax advantages
  • Understanding the benefits and drawbacks of investing in an illiquid, non-traded investment
  • How non-traded REITs potentially provide diversification benefits to traditional stock and bond portfolios
  • How to evaluate if you are a suitable investor for non-traded REITs

Real Estate Investment Trusts Risks:

Investing in real estate and real estate investment trusts (REITs) may not be suitable for all investors and involves special risks, such as limited liquidity and demand for real property; changes in supply and demand for real property; change in law; tenant turnover or defaults; loss of investment; competition; casualty losses; use of leverage; real estate values may fluctuate based on economic, environmental and other factors.  There is no assurance that the investment objectives of any real estate program will be obtained.