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REITs pay 90 percent of their taxable income to real estate investors.
REITs pay 90 percent of their taxable income to real estate investors. Pexels

Although real estate is deemed as a stable, tangible, and profitable form of investment; the average American often cannot afford to invest in it in their early working years because of its high-capital entry. As such, Real Estate Investment Trusts (REITS) are becoming a popular gateway for investors in the US to dip their feet into real estate early in life.

What is a Real Estate Investment Trust (REIT)?

An REIT is a company that owns and manages cash-generating commercial real estate properties and pays stakeholders 90 percent of its taxable income in the form of dividends. Investing in REITs is basically like buying shares of multiple properties. This leads to portfolio diversification and could even offer a buffer during market upheavals. To date, over 140 million Americans have collectively invested and earned billions from REITs.

REIT fund managers strive to find the best possible investment opportunities for investors by directly consulting with property owners, asset managers, lenders, lawyers, and title insurance agencies. They aim for properties that are favored to appreciate in land value over time and offer consistent returns from reliable tenants that are bound by long-term net leases.

Net lease contracts generally last for years and require tenants to pay for property level expenses and operating costs, including insurance, real estate taxes, and utility bills in addition to the monthly rent. These long-term contracts reflect strong tenant financials, which are likely to ensure stable rental income and insulate investors from income fluctuations during market volatility. However, before making any real estate investments through an REIT, you need to understand the impact of location, growth potential, community development, and the REIT's fees and background.

An REIT With the Goal to Democratize the Real Estate Market

An emerging real estate investment mobile app called HappyNest has an REIT that focuses on single-tenant commercial properties occupied by credit-rated tenants with long-term net leases. Investors can buy portions of these strategically located and cash-generating properties for as low as $10 with the option to increase their holding with recurring deposits.

The online platform offers investment opportunities that are favored to deliver stable income, introduce portfolio diversification, and increase net worth through land value appreciation and careful asset management.

The online platform is directly managed by HappyNest Advisor LLC is responsible for the procurement and recommendations of premium real estate properties to their growing REIT. Since they follow fiduciary standards, they are ethically and legally required to recommend the best investment opportunities.

HappyNest Properties

At present, the HappyNest REIT showcases two properties occupied by world-known tenants on corporate lease. These tenants consistently pay a handsome rent and have been occupying these properties for more than a decade now.

Their easily-accessible 1.54-acre retail property in Easthampton, Massachusetts acts as a drive-thru CVS pharmacy and generates $314,089 in annual rent. The tenant has a corporate lease where the rent increases every five years. It also has an ongoing lease history of over 12 years.

Their 42.87-acre property in Fremont, Indiana is strategically located between I-90 and I-69 freeways, and houses a distribution facility and a FedEx truck terminal with 188 truck bays. It generates an annual rent of $1,224,835 with the tenant present for more than 10 years on active lease.

How to Buy Real Estate on the HappyNest Mobile App

After downloading the HappyNest app on iOS or GooglePlay, you may create an account with your personal information, link a U.S. bank account through their secure channels, and gauge returns on investments in real-time before purchasing a share of their REIT. The app uses 256-bit military grade encryption for secure data exchange with added layers of safety like biometric logins, and identity and email verification.

Investors usually earn quarterly income and also have the option to set up recurring deposits on a weekly or monthly basis to grow their portfolio for maximizing their returns.

Invest in real estate through HappyNest today.

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