What if you could have ownership of several properties, without the hassle of acquiring and managing?
By: Libby Honsalek, Account Executive of Investment Sales Team Manager & Administrative Executive
A very popular, yet not widely utilized form of investing in Commercial Real Estate, is through Real Estate Investment Trusts, or REITs. A REIT acts as a holding company for real estate property. It is a professionally managed Real Estate Portfolio that actively acquires (buys) income producing properties, such as multi-family apartments and mixed-use office buildings.
What is a REIT?
The easiest way to understand this investment structure is to think of the REIT as a basket that holds various Commercial Real Estate properties. (see below). (Want to learn more about the TCO ONE REIT?)
How does it work?
If you want to invest in RE, REITs can be a very easy way to get started. The purpose of REITs are to allow everyday investors to invest in real estate assets that they otherwise would not be able to afford.
What are the benefits?
REITs offer reliable growing income, because they invest in properties that are already making income, such as apartment complexes that gather regular rent from tenants. Because 90% of taxable income is paid out to shareholders, REITs typically have above average dividend yields, in other words, they tend to pay higher dividends. When the overall market is down, REITs generally remain strong. With depreciation, you can write off any losses in your taxes, which actual saves money.
If you’re looking for a smart way to diversify your portfolio, REITs are an easy way to do that
What about the risks?
In a down market, people are less hesitant to invest. That is why our expert acquisition team seeks to acquire property in areas where there is an undersupply of apartments which ensures a greater occupancy level in the existing apartments we own in that area. We seek to develop mixed-use properties in areas where there is an undersupply, to provide communities with dynamic places to live, work and play.
What about economic risk?
Vacancies tend to happen when you are not meeting the market demand; this can happen when you are way overpriced. In a recession, people are losing their homes, so they are generally flocking to apartments. This leads to a greater number of occupancy in the types of properties we acquire in the TCO ONE REIT, which leads to greater ROI for our shareholders.
What about Tenant risk?
We mitigate the risk of unreliable tenants by buying high quality properties, which in turn, naturally attracts high quality individuals. We also employ strict qualifications for renting apartments, to filter out those unreliable tenants.
Why Trust Our Team?
We are an experienced team of investment professionals that have been in the business for over 35 years. We have seen the highs and lows in the market throughout the years and bring valuable insight in how to make you a return. Our strategy to buy mostly apartments and re-develop land into mixed-use properties, is sure to see a heavy return.
Libby Honsalek,
Administrative Executive and
Account Executive of Investment Sales Team Manager
The TCO ONE REIT, acquires multi-family apartments and mixed-use properties with the intention to bring consistent passive income back to you, the investor. This is your opportunity to invest in institutional quality properties at a fraction of the cost. For $25k dollars you get a fractional ownership in property where you earn passive income. This investment structure offers you the ability to invest in something bigger than what you could do individually.
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