The challenges of this week have some bright spots.
This week has been an interesting one for many in the country. In our great state of Texas we have experienced a cold snap that has literally shut down infrastructure for days on end, its effects widespread.
There are bright spots, neighbors and family pulling together, and a renewed appreciation for the basics. It is important to embrace and remember these things, especially when things are smooth and easy.
There is a bright spot in the markets as well, especially in our neck of the woods. According to NAREIT, one of our trade publications, the highest performing REIT sectors YTD are Residential 8.1% and Retail 13.8% respectively.
Even the office sector , with its pandemic virtual work environment challenges , managed to stay positive at 0.7%.
The REIT Index as a whole delivered 5.7% in the first month and a half of the year.
Source: https://www.reit.com/news/blog/market-commentary/reits-continue-strong-performance-in-2021
What does this mean to you? If you invest in the Cawthon TCO One REIT, you have 21% yield and clear stability, with a low correlation to the under performing bond market and the frothy stock market.
Look at the performance comparison of the REIT index, vs the S&P 500.
S&P 500 2021 YTD: 4.89%
FTSE REIT Index 2021 YTD: 5.7%
S&P 500 2020: 30.43%
FTSE REIT Index 2020: 28.07%
In search of yield
On February 12, 2021 the Bank of America US high yield equity index, otherwise classified as The Junk Bond index, closed at an average yield of 4.09% taxable. This means that even with increased credit risk, even non investment grade, you are being rewarded with slightly higher than 2% above a 30 yr new issue Treasury Bond!
All other fixed income asset resources remain at all time low yields.
So once again, REITS come into the picture for a fixed income investor, TCO One REIT delivers 21% ,providing not only yield but total return.
Our REIT Strategy proves to be a defensive yet tactical investment.
Consider us for a portion of your total return strategy.
Our REIT, The Cawthon TCO One REIT, delivers the following to all investors:
A principal focus on capital preservation, we cannot make money on capital lost.
Our yield is consistent, and conservative, there is simply no way in this market to achieve this level of yield and diversification outside of real estate, we provide both.
Our capital gain thesis is based upon purchasing discounted assets, thus greatly increasing our upside potential, simultaneously reducing downside risk.
Low Correlation to the capital markets Reduction of entire portfolio volatility.
Tax Advantages
Extremely competitive yield and capital gain
1031 Tax Free exchanges
Buy low and sell high through timely, discounted acquisitions
Substantially greater passive income - 21% TCO ONE / 3.5% Public
Our choices for income are very limited in this environment. The Fed will undoubtedly not be raising interest rates anytime soon.
With the TCO One REIT you acquire diversification, income, capital gain and tax advantages!
Speak to The Cawthon Organization Today and find out how you can dramatically increase your income in a diversified Real Estate Portfolio!
Find out how we can increase your passive income, and decrease your overall volatility.
Jim Fournace
Account Executive of Investment Sales
Cawthon Organization
225-276-1525
The TCO ONE REIT, purchases multi-family properties with the intention to bring consistent passive income back to you, the investor. This is your opportunity to invest in institutional quality multi-family properties at a fraction of the cost. For $25k dollars you get a fractional ownership in multi-family 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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