How Rich Uncles empowers average Americans to become real estate investors.
A growing trend in the real estate investment sector is the use of crowdfunding to raise capital for transactions. Known as Real Estate Investment Trusts (REITs), this option allows people to invest in real estate, even if they only have a small amount of capital to contribute. This is where Rich Uncles comes into play. Because the company wanted to offer everyone the opportunity to capitalize on REIT investing, the company offers a REIT that only requires $5 to join. With the goal of making commercial real estate more accessible to individuals, Rich Uncles allows anyone to make an investment, even if you are not an Accredited Investor.
Rich Uncles has two funds that individuals can choose to invest in; the Rich Uncles NNN REIT and the Rich Uncles Student Housing REIT. The NNN REIT requires a minimum investment of $500 and focuses on investing in commercial properties that leverage a NNN or “triple net” lease structure. The Student Housing REIT only requires a minimum investment of $5, and focuses on investing in student housing—specifically properties with a 150-bed minimum, 90% occupancy rate, and within one mile of NCAA Division I universities with at least 15,000 students. To date, the NN REIT has yielded a 7% annualized return, and the Student Housing REIT has yielded a 6% annualized return.
So, how do investors make money? In basic terms, Rich Uncles’ REITs receive rent from tenants that the company then distributes to shareholders in the form of monthly dividends. Rich Uncles also offers investors flexibility that allows them to get their money back sooner with their monthly Share Repurchase Program. This program allows investors to sell all or a portion of their shares at Net Asset Value.
This is what you need to know about entering the real estate investment market with Rich Uncles. Interested in staying up to date with the latest commercial real estate news? If so, then contact the experts at California Commercial Realty Advisors, Inc. Your commercial realty advisors are eager to assist you with all your real estate needs today.