A non-traded REIT is a type of investment structure that offers the benefits of professionally managed real estate to individual investors. Investors purchase shares in non-traded REITs, which use the funds to acquire real estate and, to a lesser extent, invest in real estate-related assets. The REIT’s real estate holdings intend to generate revenue in the form of rental income from tenants, interest payments or property operating income. The REIT passes the taxable income back to its investors through regular distributions. Please note that initial distributions will not be fully covered by cash flows from operating activities and will be paid from expense waivers, borrowings and offering proceeds. To maintain REIT tax status, at least 90 percent of the REIT's income must be distributed to its investors.
Please note that an investor must review the fees and expenses in the prospectus, as there are substantial costs associated with this offering.