A REIT, which is the acronym for Real Estate Investment Trust, is just that – a real estate investment trust. A REIT is owned by a corporation (not a financial institution or insurance company) and offers an individual the opportunity to become a bona fide real estate investor.
Investopedia defines a REIT as an investment similar to the investment made into a mutual fund. In a Real Estate Investment Trust, the capital is pooled from various investors, and the corporation/company owns, operates, or finances real estate to generate income. Individual investors earn dividends from these real estate investments and do zero of the holdings’ buying, managing, or financing. Firms like NRIA (National Real Estate Investment Advisors), while not a REIT, offer other ways to invest in real estate. Firms like NRIA have quickly come to comprise “some of the nation’s leading specialists in institutional-caliber private real estate investment management” because of the massive opportunity presented to the individual investor and the minimal hands-on expectations.
NRIA’s spokesman says, “By taking over the individual time required to scout, vet and assemble deals consisting of pooled investor capital and bank debt, etc, the individual can more realistically execute on smart real estate investment decisions.” In other words, investors in both REITs and private placement offerings on new constructions earn both money and time, which turns into more money and more time to develop one’s real estate portfolio.
If you are thinking about investing with a REIT, private placement offering or other real estate investment, let us introduce you to some of the best known in the business:
First and foremost is NRIA (National Real Estate Investment Advisors), which has developed a portfolio with over $1.25 billion in assets under management annually and in only sixteen years. Additionally, this firm prides itself on being forward-thinking and diverse – creating opportunities in “a variety of high end, yet affordable, rental projects in densely populated, urban environments.”
But, if you’re thinking less housing real estate and more global in reach – there is the American Tower Company. American Tower specializes as a “leading independent owner, operator, and developer of wireless and broadcast communications real estate.” In business since 1995, American Tower offers unique investment opportunities.
Again, maybe you are in the market for a different type of real estate investment opportunity, less global and perhaps even cold? Let us introduce: Americold. Americold is “the world’s largest publicly traded REIT focused on the ownership, operation, acquisition, and development of temperature-controlled warehouses. Based in Atlanta, Georgia, Americold owns and operates 238 temperature-controlled warehouses, with over 1.41 billion refrigerated cubic feet of storage.” Investing with Americold allows you to be a link in the chain between food producers, processors, distributors, and retailers to consumers.
For those traditional types – do not fret. There are firms like UMH Properties. UMH “owns and operates a portfolio of 127 manufactured home communities with approximately 24,000 developed homesites. These communities are located in ten states: New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Maryland, Michigan, Alabama, and South Carolina. In addition, UMH owns approximately 1,800 acres of land for the development of new sites.” Unlike NRIA, though, this REIT targets affordable home buyers, i.e., a specific class of people – offering less diversity than a firm like NRIA where your potential for returns is far more significant due to the variety of the trust’s portfolio.
For the Industrial and commercial buyers – do not worry; there is a REIT for you too. STAG Industrial is “a real estate investment trust focused on the acquisition and operation of single-tenant, industrial properties throughout the United States. By targeting this type of property, STAG has developed an investment strategy that helps investors find a powerful balance of income plus growth.”
No matter what type of portfolio you are building, REITs, like private offerings, offer diversity and opportunity with a return on both your money and your time.
