3 Reasons Why You Can't Beat the REIT
As we slowly return to normal economic activity, many investors are turning toward lower-risk investments that can protect their value of income. One way to negate risk for investors is through investing in a REIT (Real estate investment trust). REITs are companies that finance or own real estate that produces income. These companies have to meet many requirements to be considered a REIT and offer major benefits to investors. REITs have a history of delivering competitive advantages and have supplied investors with attractive total returns, compared to the stock market and other similar assets. You just can’t beat the REIT!
What are the major benefits of a REIT?
- Safety: Inflation has been a major concern to many investors, especially as of late. For example, the Core Personal Consumption Expenditures Price Index rose 3.4% last month compared to a year earlier. Another indicator, the Consumer Price Index, also rose to 5%. In order to have some protection against inflation, many are investing in REITs because they are known to be significantly less impacted by inflation. This is because property values increase as prices do. Another safety benefit of a REIT is the transparency that it provides. Your investment is tracked and continuously monitored by Investment officers, analysts, and auditors that provide extra protection.
- Steady Returns– REITs have a strong proven track record of producing constant returns, regardless of market conditions. So for those requiring a steady stream of income, REITs are a great choice because they are required to distribute 90% of their income annually.
- Diversification.- REITs offer access to a variety of real estate in a variety of locations, therefore further diversifying your investment.
How can you invest in a REIT?
ZINC has you covered! With our increase in our loan volume ZINC is continuously looking for new Capital Investors and we now have our very own REIT. The ZINC brand involves a consortium of entities conducting in excess of $100M in transactions annually, all involved in the private lending space. Approaching $1 billion in lifetime funding, our principals are actively sought after to headline speaking engagements on private equity lending in the distressed asset lending space. The ZINC Income Fund II investment strategy offers accredited investors the opportunity to earn a 6% annualized cumulative preferred return plus a back-end profit split. Investors participate in first-lien collateral-backed real estate loans via trust deed investments. The Fund provides short-term loans to real estate investors who buy, rehab, and re-sell distressed properties quickly. Click here for more info.