The REI Capital Growth Business Model for Real Estate Investing:
How Growth Works!
How to Think about Commercial Real EstateIn Terms of an Investment Vehicle
Can All Real Estate Investments Do This?What Kind of Real Estate -- Can Do This?
A Compounding Yield?How can Real Estate Deliver
We think of Commercial Real Estate as a Financial Instrument, that is backed by a physical or hard asset that can deliver a Perpetual Cash Flow Stream for as long as there are tenants willing to pay Rent.
The Perpetual Cash Flow Stream can be acquired for a price or CapRate.
Not all investment real estate is the same!
We believe that institutional grade retail properties, that are:
- Established in the market; and
- 90% – 100% fully leased; to
- Multiple credit rated business tenants; with
- Triple Net (NNN) leases. (Tenants escrow for all expenses)
Will delivers a consistent Net Operating Income (NOI) or yield.
Because we are not structured as a REIT, and we do not distribute dividends to stock holders.
We can reinvest the annual profits by acquiring additional properties and increase the total perpetual cash flow streams, year over year. Thereby increasing the net asset value per share of stock for all shareholders.
In this way we can deliver Programmatic Compounded Portfolio Growth.
Why hasn't this been done before?
ACTUALLY… IT IS BEING DONE ALL THE TIME.
For example: Number of Real Estate Interval Funds Grows Dec 19,2022 Article
Read carefully – The minimum investment is $1 million.
It is just not available to you.
REI Capital is making Institutional Strategies exclusively available to our international community of everyday hard working everyday retail investors.
REGISTER YOUR INTEREST TODAY
Real Estate Investment
REICG Pays Tax at the Corporate Level
Tax Efficiency for
No US Tax exposure for Non-US investors
What are the core differences?
Traditional private real estate investments offer investors both income and growth with a single leveraged equity offering. The growth component always involves predicting and realizing a future property valuation on a predefined timeline. And deal managers are required to sell the property to deliver returns to their investors.
Predicting the future is inherently risky
Our model is designed as an Evergreen Fund that does not liquidate properties to deliver returns. Our Equity Growth fund delivers returns through the programmatic acquisition of additional properties with free cash flow from our existing portfolio, resulting in exponential growth. Our Debt Fund replaces traditional mortgage debt with bond investors that receive their returns in quarterly payments and a small accretion. Both funds offer liquidity through the digital asset security market, allowing investors to tailor their investment horizons to their own needs.
What are the REICG advantages?
Share Price Growth Does NOT Depend on Property Value Growth
Growth Uncorrelated to Changing Property Values
Growth Uncorrelated to fluctuating Interest Rates
Stable Growth Uncorrelated to Stock Market Volatility
Predictable Compounded Growth Based upon NOI and Cap Rate
Projected Equity Growth Rate of 9% annually
Simplified Tax Efficient Structure
No Need for Expensive Off Shore Tax Haven Feeder Funds
No 30% withholding required for Investors with NO US Tax ID
No annual Investor Tax reporting: No K-1s or State Tax filings
Investor Capital Gains in Home Country Only
Friction Free Cross-Border Trading
Expanded Universe of Potential Investors and Traders
Now Eligible for Fee Only RIAs to invest on behalf of Clients
No Unrelated Debt Financed Income (UDFI) for Retirement Accounts
Perfect For IRAs, 401Ks, ROTH IRAs
What is the projected growth of $50K over 10 years?
REI Capital Management has developed a proprietary projection model, based upon the founders 30 years of experience in financial analysis, specifically for multi-tenant retail.
** based upon a single person investing $50,000 USD in year one and no additional investment. It is also assumed that the REICG fund reaches it’s capital raise limit every 12 months, per SEC regulations.
When is the best time to start investing?
Compounding Interest is the 8th wonder of the world according to Albert Einstein and the exponential power is only achieved through time.
The best time to start your investment wealth building journey is NOW!
This Chart is for illustrative purposes only, and is not intended to serve as investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. According to MorningStar (Taxes Can Significantly Reduce Returns, © 2019 Morningstar, Inc) investors who didn’t take taxes into account in their investment decisions over the long term, lost about 2% of their annual returns to taxes, on average. This chart illustrates the effect of a 2% difference in compound interest rate, on a $100,000 investment, over a 20 year time horizon.