Real estate investment trusts (REITs) usually own and manage income-producing real estate. But REITs are quite diverse in nature and can own a variety of different property types. Additionally, some REITs are publically-traded (just like stocks, or the Vanguard ETF), others are not. Publicly-traded REITs are just as volatile as stocks, which isn’t much help when the stock market is declining.
Alternatively, SilverPeak Wealth invests in highly-vetted, institutional-quality, low-cost real estate funds where the share prices are based on valuations, and not on the whims of the stock market.
Five reasons to invest
- High Monthly Dividend. In today’s low-rate environment, non-traded REITs offer attractive yields. SilverPeak Wealth’s preferred non-traded REITs offer yields above 5%, which is paid monthly.
- Stable Value. Our preferred funds are valued (and share price set) based on 3rd party appraisal of the underlying properties.
- Inflation Protection. Real estate is a natural hedge against inflation because rents and property values rise.
- Potential for Capital Appreciation. SilverPeak Wealth’s preferred funds own high-quality, commercial real estate in strategic locations. These properties include warehouses, apartments, grocery stores, etc., and are leased to creditworthy tenants on long-term leases.
- Tax Advantages. REITs are typically not taxed at the corporate level, which allows for more money to be passed on to investors. In addition, a portion of the monthly distribution to shareholders may not be taxed in the year it is paid.
The information above relates to the real estate investments that SilverPeak Wealth buys.
SilverPeak Wealth has been very happy with these funds. However, most funds do not match up. In general, non-traded REITs should be approached cautiously. Many have very high fees. Others are illiquid, making it difficult for investors sell their shares when needed, or face high surrender penalties. Still other REITs are too small to provide adequate diversification.