4 Non-Traded REITs To Consider Adding To Your Portfolio

·3 min read

Real estate investment trusts (REITs) are an excellent option for investors to benefit from the stability and cash flow that real estate offers without taking on the major capital commitments or property management responsibilities required with traditional property investments.

One drawback to investing in most REITs is the volatility that comes with buying shares of any publicly traded company. When the stock market is down, shares of a REIT may be worth less than the value or the company’s assets.

One option that’s overlooked by many retail investors: non-traded REITs. These are REITs that aren’t traded on any major stock exchanges and can’t be purchased through your brokerage app. This means there is little to no correlation between the price of a REIT’s shares and the performance of the stock market.

High-Dividend, Non-Traded REITs

Another benefit to non-traded REITs is they typically have lower compliance expenses than their publicly traded peers. These two REITs take advantage of that cost savings to provide higher dividend payouts to investors.

MogulREIT I: This is one of RealtyMogul’s two REIT offerings. MogulREIT I was created to provide consistent income to investors through its monthly dividend payments. The REIT currently has a portfolio of debt and equity investments in multifamily, office and retail properties across the United States.

  • Minimum Investment: $5,000

  • Current Dividend Yield: 6%

  • Dividend Frequency: Monthly

  • Investment Term: 5 years

More details on MogulREIT I

1st Streit Office: Offered by Streitwise, this REIT has a target dividend yield of 8%-9%. The REIT’s portfolio is currently made up of two class A commercial properties that includes a 290,000-square-foot office park in Sunset Hills, Missouri and a 142,000- square-foot office and retail property in a suburb of Indianapolis, Indiana.

  • Minimum Investment: $5,000

  • Current Dividend Yield: 8.4%

  • Dividend Frequency: Quarterly

  • Investment Term: 5 years

More details on 1st Streit Office REIT

Non-Traded REITs For Growth

Non-traded REITs have limited liquidity options during the initial investment term, which means they’re best suited for long-term investors. These two REITs are focused on increasing the value of their shares to provide maximum growth.

MogulREIT II: The second of RealtyMogul’s REIT offerings was created to provide growth through an investment strategy that’s focused on increasing the REIT’s net asset value (NAV). However, even with growth in mind, the REIT still pays an attractive dividend at 4.5%.

MogulREIT II’s portfolio consists of multifamily investments in primary, secondary and tertiary markets in Texas, New York, Connecticut and Michigan.

  • Minimum Investment: $5,000

  • Current Dividend Yield: 4.5%

  • Dividend Frequency: Quarterly

  • Investment Term: 3 years

More details on MogulREIT II

DiversyFund Growth REIT: Offered by DiversyFund, this REIT is focused on growth through its value-add acquisition strategy for multifamily properties and automatic dividend reinvestment plan.

The REIT’s strategy involves purchasing and renovating undervalued apartment communities to create growth through forced appreciation. Investors are also automatically enrolled in the dividend reinvestment plan, so their equity grows monthly.

DiversyFund’s real estate portfolio currently consists of 10 multifamily properties across six states.

  • Minimum Investment: $500

  • Current Dividend Yield: 5%

  • Dividend Frequency: Monthly

  • Investment Term: 5 years

More details on DiversyFund Growth REIT

Photo by All Bong on Unsplash.

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