A Real Estate Investment Trust, or REIT, is a tax-advantaged company that owns income-producing properties and distributes the cash flow to investors in the form of dividends.
Watch VideoTwo Types of REITs: Traded and Non-Traded
Streitwise is a Non-Traded REIT.
There are two types of REIT’s available to investors: traded REITs and non-traded REIT’s.
Traded REITs are subject to the volatility of the stock market since they’re listed on a major stock exchange (like the NYSE or Nasdaq), have high liquidity, and strong transparency to shareholders. The drawback is that these REIT’s are usually exposed to the volatility of the stock market and may generate lower overall dividend returns to investors.
Non-Traded REITs are not subject to the same volatility. Due to less liquidity, returns can often be higher for non-traded REIT’s and may be a valuable piece for a long-term investment portfolio. The drawback for many are the exorbitant (often hidden) fees some REIT providers charge, lack of access to individual investors that are not wealthy and often a lack of transparency.
Streitwise is a rare non-traded, low-fee, transparent that is open to both accredited & non-accredited investors, making this the perfect addition to any investor’s financial portfolio.
Typical Non-Traded REIT Fee Structure
Non-Traded REITs usually charge high fees because their shares are sold through middlemen. Upfront costs alone can total as much as 15% of the original investment.
Streitwise avoids middlemen, so we only charge 2%. annually