Or does it? Does high income mean high risk?
What goes up must come down. Alas, Newton’s law applies in physics, as well as our equity markets. We view this phenomena as volatility. We hope that volatility trends upward and makes our investments grow. Simple, straightforward, and easy.
As real estate investors, we follow the same methodology—buy low, sell high, trend upward. The market has several tools at our disposal to practice our craft with success. We can diversify in all types of ways: various types of property, geographic distribution, even credit spectrum.
Of course, as investors, we now have a fork in the road, Publicly traded or Private traded REIT (Real Estate Investment Trust).
Public REITS are efficient in their liquidity, spin off a yield to investors and provide diversification. The trade off however, is they are tied to the capital markets, and as such, correlate directly to the corresponding volatility. If the stock market gets jumpy, so does your REIT investment.
In contrast, privately traded REITS, specifically the TCO ONE REIT, provide several substantial advantages over their public contemporaries.
Low correlation to equity market volatility. Reduces entire portfolio volatility
Extremely Competitive Yield and Total Return (Cap gain and Dividend)
1031 Tax Free Exchanges
Buy low sell high through timely, distressed acquisitions.
Substantially greater passive income — 8% TCO ONE (as compared to 3.5% public).
In conclusion, what goes up must come down, unless you have substantial income based in prudent real estate purchases increasing your income.
Call us today at 225-276-1525.
Find out how we can increase your passive income, and decrease your overall volatility.
Jim Fournace
Account Executive of Investment Sales
Cawthon Organization
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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