Less Risk, Consistent Returns and Inflation Protection Provided by Commercial Real Estate
We believe that direct investment in real estate belongs in every serious investor's portfolio [read more here], but our investment thesis is focused on net lease investments due to the following advantages:
PASSIVE INCOME
Direct investment in commercial real estate can provide cash flow at or above traditional income markets.
Focus on securing leases with credit-rated national and thoroughly vetted local tenants.
Potential to participate in pass-through deductions for depreciation, interest expense, and other items that defer taxes on distributions. Any additional profit following a sale is more favorably treated as a long term capital gain.
Direct investment in commercial real estate has a historically low correlation with the stock or bond markets. Unlike the stock market, short term volatility or headline risk is not a significant factor in commercial real estate.
Real estate is a hard asset that has value both in the building and in the underlying land. These assets are used to increase the value of the land through cash flow.
Achieve cost savings via direct, private ownership, maximizing risk-adjusted returns. Net leases minimize loss to overhead and other expenses.
Net leases shift operating increases to tenants and include annual or semi-annual rent increases. Further, the factors that create inflation in our economy are the same factors that drive up rents and real estate prices.
Predictable income via multiyear leases with credit-worthy tenants, backed by a physical assets.