There are quite a few things you should know before investing in your first retail REIT.
Retail is one of the more interesting real estate investment trust (REIT) specializations. Retail tenants lease several types of commercial properties, and each type has its own risk factors and business dynamics, so it’s important to know what you’re getting into before you buy your first retail REIT.
Here’s what you need to know.
What is a retail REIT?
A real estate investment trust, or REIT, is a special type of company whose primary business is investing in real estate assets.
The company needs to meet some specific requirements to qualify as a REIT. It must
- invest a minimum of three-fourths of its assets in real estate,
- derive three-fourths of its income from rental income or other real estate-related income streams,
- have a minimum of 100 shareholders,
- be no more than 50% owned by five or fewer investors, and
- pay out at least 90% of its taxable income to shareholders as dividends.
If a company meets the REIT requirements, it enjoys a nice tax benefit. Any profits earned by a REIT are not subject to corporate income tax. Instead, REITs pay out most of their taxable income directly to investors.
REIT dividends are subject to income tax unless they’re held in a retirement account. But not paying corporate income tax is still a huge benefit. Most companies are taxed at the corporate level and the money they pay out as dividends is also taxable on the individual level. Their profits basically get taxed twice.
Most REITs specialize in one type of commercial real estate. Retail REITs invest in properties primarily occupied by retail tenants. Most retail REITs specialize even further in a specific type of retail property.
For example, some retail REITs own shopping malls while others own outlet centers. Some own open-air shopping centers and others own single-tenant, freestanding properties.
7¢ Skip Tracing – Guaranteed lowest price on the market for the best quality data.
Don’t just take our word for it. Try us out by running a small list first to see the tier 1 data for yourself. We are offering non-members access to member pricing, so you can experience the Skip Force Difference and improve the quality of your lists.
Pay wholesale price for quality data
Receive the TOP 3 Phone Numbers
Discover which phone numbers are best
Learn the BEST Time to reach a contact
We can take your old list, grade it and come up with the
BEST NUMBERS to contact
Develop a SNIPER MARKETING Plan
Increase ROI and TEAM MORALE
We have extended this special but cannot afford to keep this offer running for long.
Have Questions? Reach out to us, we’re here to help.
Call us at: 866-962-8190
Get Started Now
Related News
In the age of technology and information, skip tracing has become an essential tool for various industries, including real estate. Skip tracing refers to the process of locating a person’s current whereabouts by gathering and analyzing available data. When it comes to property finding, skip tracing can be a valuable asset for real estate agents, […]
In the world of real estate wholesaling, finding motivated sellers and hidden opportunities is essential for success. Skip tracing has emerged as a powerful tool that enables wholesalers to locate elusive property owners and generate profitable deals. In this content, we will delve into the concept of skip tracing for wholesalers in wholesale real estate, […]
Skip tracing has become an invaluable tool in the real estate industry, offering professionals the ability to locate and connect with individuals crucial to their business. By leveraging skip tracing services, real estate professionals can streamline their operations, enhance their due diligence efforts, and increase the chances of successful transactions. What is meant by “Real […]