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Use Unlisted or Private REITs for Real Estate Money

Tyler G. Hicks

by Tyler G. Hicks

A REIT–REAL ESTATE INVESTMENT TRUST–can be your source of money for real estate to:

  • Buy, own, and collect rental income from almost any type of real estate.
  • Lend money on almost any type of real estate mortgage.
  • Run a hybrid business–that is own, and lend on, real estate of many types.

REITs OF ALL TYPES ARE HIGHLY POPULAR TODAY. People feel safer with REITs than they do with the stock market. Why? Because the value–namely the real estate–is always there! It doesn’t go away, like a company can. And a PRIVATE REIT:

  • Can raise money from qualified investors at low cost.
  • Need not give info on its operations to the public.
  • Has little regulatory supervision compared to public firms.

UNLISTED REITs are similar to private REITs. But unlisted REIT must report its results and operating data to more regulatory agencies. And unlisted REITs can be wildly successful. Thus, one oustandingly well run unlisted REIT is currently reported as:

  • Raising more than $100-million a month at $10 per share.
  • Buying office buildings worth over $1-billion last year.
  • Paying its investors dividends in the 7% range.

YOU, TOO, CAN FORM YOUR OWN PRIVATE OR UNLISTED REIT. To form your REIT take these easy steps:

  1. Decide what type of REIT you’d like to form–unlisted or private, equity, mortgage or hybrid.
  2. Write up a description of your REIT that will interest investors. Why? Because if you’re like most people you’ll need investors to supply the capital for your REIT.
  3. Get an experienced REIT attorney to advise you on how you can raise capital from qualified investors. The attorney will guide you through the steps needed to start your REIT correctly, and run it properly and legally.
  4. Search for a suiltable property for your REIT. Look for top- notch Class A properties. They’re a safer investments and usually provide a higher profit to your REIT.
  5. Try to keep your REIT’s debt as low as possible. Then you can pay higher dividends and attract more capital to buy more good properties. You may even reach the investment income mentioned above. Yes, private and unlisted REITs can be profitable for the ambitious real estate wealth builder today!

Copyright © 2004 by International Wealth Success, Inc. All rights reserved.

Author Bio

Tyler G. Hicks, the president of International Wealth Success Inc., is the author of many wealth building publications, including the Real Estate Investment Trusts Kit.

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