Accredited Investor Application
Are you an accredited investor and want to learn more about the investment options Solutions Home Buyers has available as an investment alternative to your hard earned money?
Excellent, fill out the standard Accredited Investor Application form below. This makes sure we’re working with a qualified individual. After you fill out the application we’ll connect with you to show you our available options.
Publicly-Traded Real Estate Investment Trusts (REITs)
Non-accredited investors have always been able to buy individual REIT stocks. REITs are simply companies that are in the business of owning and operating real estate and in order to maintain their REIT status (to avoid double-taxation), they must distribute at least 90% of its taxable incomes in dividends. Shareholders are taxed on this dividend income.
On September 1st, 2016 equity REITs will change their location in the U.S. stock market from the financial sector to a new, separate real estate sector. The new real estate sector will contain only equity REITs that own physical property. This change has significant implications for investors. I’m a big proponent of buying low-cost ETF’s instead of individual equities (I use Wealthfront for my personal investing). If I was seeking bank exposure, I’d buy a Financials ETF (which today includes Equity REITs). As such, REITs performance were in part tied to Financials.
The creation of a new sector will bring greater attention to REITs and a broader understanding of REIT accounting and dispel conceptions that REITs are a proxy for single-family housing. There is already an ETF tracking the new real estate sector – Real Estate Sector SPDR Fund (XLRE).