The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.
REITs - businesses that own, operate, develop or manage real estate - are a good way to generate yield that’s typically higher than bonds. Retail investors can pick from traded REITs, which trade on public stock exchanges and non-traded REITs.
Traded Vs. Non-Traded REITs: It's important to understand the differences in trading and ownership between traded and non-traded REITs before deciding which investment opportunity will be best for you.
Like publicly traded REITs, anyone can buy a public non-traded REIT. However, they typically lock up investors’ capital for multiple years. They also have high minimum investments, which can make them less accessible for retail investors.
While non-traded REITs often have more stringent rules than their publicly traded counterparts, non-traded REITs come with a few advantages. The longer holding period for non-traded REITs lets management focus on long-term strategy. As a result, they may have higher dividends and overall higher returns than traded REITs.
How To Buy Non-Traded REITs: There are multiple options available to purchase public non-traded REITs. RealtyMogul offers a few opportunities for investors that offer attractive dividends.
- MogulREIT I: This REIT’s diversified investment strategy allows it to hold investments in senior secured loans, mezzanine debt, preferred equity and equity structures - each with their corresponding risk and return profiles. The investment option has historically paid out a 6.0% annualized distribution net of fees.
- MogulREIT II: This REIT’s management evaluates established and well-positioned apartment communities with high occupancies and consistent rental revenues across market cycles. This investment option also sources opportunities with a high potential for appreciation which increases the yield for the asset. The asset has historically paid out a 4.5% annualized distribution net of fees.
Non-traded REITs may have a place in your portfolio if you’re targeting a long-term investment strategy. You can get more details on non-traded REITs by checking out Realty Mogul.
Photo: CreateTravel.tv on Unsplash
The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.