CityVest invests in highly selective real estate private equity investment funds.
A real estate investment trust (REIT) is a company that has ownership in income-producing real estate that offers investment opportunity through their real estate stock portfolio. A REIT typically combines the money of multiple investors to acquire a collection of real estate. Like, a mutual fund, participating investors in a REIT do not own the actual real estate properties, they own a share of the fund that owns the properties. A REIT investor’s goal is to receive rental income from the properties as well as benefit from price appreciation.
Some REITs are publicly traded where share price and dividend yield is readily available online. Other types of REITs, for instance that do not trade on an exchange, require investors to buy shares directly from the real estate company offering them.
Becoming a REIT investor is like becoming a shareholder: you don’t manage the properties or make investment decisions in the buying or selling of the properties. The fund’s management team handles the business end ranging from property management to managing the financial aspects that generate profit. While REIT investors are not allowed to make financial decisions, one great advantage is that they gain exposure to large real estate deals that otherwise would not be available to a single investor.
There are two main types of REITs: Equity and Mortgage REITS. An equity REIT owns and manages real estate properties. An equity REIT first buys and leases properties to tenants, then overtime with appreciation and some value-add projects, the fund’s management team aims to sell property for a profit. Mortgage REITs do not own real estate properties. They own the debt via mortgages, mortgage REITs are dependent upon real estate owner's repayment at the mortgage level.
An example of an Equity REIT is as follows: a company that owns a new development of luxury apartments in a growing city. This company allows people to invest in a REIT to gather the necessary capital needed to operate the real estate venture. Over time, let’s say the city grows and young professionals move in and out of the apartments. Rent from these tenants allows the REIT to pay out dividends. Over a ten-year period let’s also say that the economy has boomed, and now the REIT is in a very good position to sell and maximize returns for its investors. This is the basic lifespan of an equity REIT from start to finish.
An example of a mortgage REIT is as follows: Let’s say a mortgage REIT raises 5.2 million from investors and borrows an addition $35 million at 2.3% interest to buy up mortgages paying 4.5% interest. The difference between the interest income and the interest expense is the profit that could represent anywhere between a 12-16% annual return on investment.
Equity REITS are known for being stable long-term investments, whereas mortgage REITs tend to be volatile. By nature, mortgage REITS are much riskier and unpredictable compared to equity REITs because they are contingent upon the cost to borrow. So, if the cost to borrow increases after the venture has commenced, the profit margin can disappear in an mortgage REIT.
If you like the idea of investing in a mutual fund, then a REIT may be a good investment for diversifying your portfolio with real estate. REITs offer the attraction of 'making money hassle free' to the investor. The goal is for investors to reap the financial benefits of investing without dealing with management or operational side of investment. They get access to balanced real estate portfolios when they own shares of REITs, as invested funds are pooled. Like a mutual fund, the investors in a REIT leave the hard work up to the professionals and industry experts to manage their money for the best possible return. Most REITs have a straightforward process for acquiring shares of ownership, so make sure to do your own due diligence on a REIT and the REIT’s financial team prior to investing.
Every CityVest investment undergoes a thorough due diligence process by our experienced underwriting team. Of the hundreds of projects reviewed each month, fewer than 1% are approved. CityVest can help you:
You benefit through professional investment structures, which target passive returns for our investors in a range from 10% to 25% - often with a preferred return.
CityVest pre-screens investments for you through our underwriting and due diligence process. We partner with institutional investment funds and sponsors and we seek a preferred rate of return.
Since real estate investments typically generate cash flow income, while common stock does not, real estate valuations tend to be less volatile and less sensitive to market risk factors.
CityVest will handle all of the accounting and administration of your investment, while you can monitor the returns.
Building Real Estate Wealth
Browse Investments How It Works FAQ Funds Seeking Capital Sponsors Seeking Capital
About Us Our Team Contact Us
Join Our Newsletter Real Estate Articles Learn Real Estate Education Real Estate Terms
Copyrights © 2022 All Rights Reserved by CityVest Capital Inc Privacy / Terms of Service
Please read the important disclosures below. CityVest.com is a website owned by CityVest Marketplace LLC, a subsidiary of CityVest Capital Inc. (together with its affiliates, “CityVest”). By accessing this website, you agree to be bound by its Privacy Policy and Terms of Service. The information on this website does not constitute an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any investment or security described herein. Any such offer or solicitation shall be made only pursuant to the final confidential offering documents of any entity described on this website, which will contain information about each entity’s investment objectives and terms and conditions of an investment and may also describe certain risks and tax information related to an investment therein and which qualifies in its entirety the information set forth herein. The information contained herein does not constitute part of the offering documents of any entity. An investment in any investment included on this website, entails a high degree of risk (including the possible loss of a substantial part, or even the entire amount, of an investment) and no assurance can be given that any entity’s investment objectives will be achieved or that investors will receive a return of their capital. Past returns are not indicative of future performance. Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. Any investment information contained herein has been secured from sources we believes are reliable, but we make no representations or warranties as to the completeness, adequacy or accuracy of any information provided. Investors should conduct their own due diligence, not rely on the financial assumptions or estimates displayed on this website, and are encouraged to consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment opportunity. Prospective investors should read the confidential offering materials of any privately offered investment product, including all risk and conflict disclosures included therein, before investing. Please read detailed information about such calculations in the investment manager’s detailed financial and information material. The information contained herein should be treated in a confidential manner and may not be reproduced or used in whole or in part for any other purpose. CityVest does not make investment recommendations, and no communication through this website or in any other medium should be construed as such. Private placements on CityVest.com are intended for accredited investors (for persons residing in the U.S.), and for persons residing abroad in jurisdictions where securities registration exemptions apply. Private placements of securities are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by CityVest, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment. © 2022 CityVest Marketplace LLC. All rights reserved.