All posts tagged: real estate trust

Advantages of Investing in a REIT

No Hassle Commercial Property Ownership

A Real Estate Investment Trust (REIT) lets you own commercial real estate without the hassle of securing mortgages, purchasing properties, or managing tenants. Best of all, REITs give the average investor an opportunity to leverage the experience and knowledge of professional property brokers and managers.

Higher Dividends for Your Portfolio

All REITs must distribute 90 percent or more of their taxable income to investors. Because of this, a REIT escapes the burden of high corporate taxes, which means fewer expenses and more money returned as dividends to their investors. This also empowers the investors to reinvest tax free back into the REIT through an IRA or use their dividend toward a vacation home.

The changes in short-term inflation and interest rates have little impact on commercial real estate. Compared with corporate and public bonds, a REIT does not have a fixed value. REITs, on average, outperform corporate bonds by a couple percentage points.

Liquidity and Transparency

Because REITs are traded on the major stock exchanges, buying and selling shares is very easy, especially when compared with buying and selling property. REITs are regulated by the SEC and follow the same rules that govern exchange traded assets. This means they must have a high level of transparency, which is important because REITs have specific asset, income, and ownership requirements by the government, all of which are reported in quarterly and annual financial reports.

Need Diversification?

Investment professionals agree that in order to minimize risk and reduce losses, everyone should have a well-diversified portfolio. This strategy gives investors a better chance to end up with more savings when they reach retirement age.

Real estate is not directly tied to stock prices. As an asset class, the real estate market can move in the same or opposite directions as the market, so it’s a great way to diversify. REITs also minimize investment risk, because they work solely with commercial properties.

Generation Income Properties is the only Trust focusing entirely on triple net leases, where the tenant pays the taxes, insurance and maintenance. Many companies, especially large corporations, find triple net leases to be very attractive for their overall operations. If you have any questions about triple net leases, or Generation Income Properties’ strategy and philosophy about investing, feel free to contact David Sobelman, Founder and CEO or call (813) 448-1234.

GIPAdvantages of Investing in a REIT
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