Real Estate Business Concept
Real Estate Business Model
REITIS for Investors
1. WE BUY & BUILD:
SmartREIT LTD finds and closes the deals, builds and/or buys properties, negotiates the financing.
2. YOU INVEST:
Accredited & Non-Accredited Investors become partners in the actual real estate. This is not a traditional trust or REIT, not a gaming fund, ETF, bond or stock; this is real Fractionalized Property Ownership (FPO). Investors own a certain amount of square meters of the property.
3. WE COLLECT RENT & SELL FOR PROFIT:
Our portfolio of properties generates monthly income through rental payments from our creditworthy tenants (private persons and businesses) and from sales to people, families, etc.). Example: we build a high-class residential property at €600/square meter and sell it at €1200/square meter.
4. THE INVESTOR GETS PAID:
a). Monthly DIVIDENDS from rent, and
b). PROFITS from the difference of building and selling the property; for example, investors’ profit per square meter, on 50/50 basis, is €1200-€600-€300=€300. If an investor owns 50 ΣREIT (50 square meters of property), his/her profit will be 50 m2 x €300 = €15,000 in 2 years, average.
Features & Reasons to Invest
REITIS’ interest in real estate as an investment option is owing to several key reasons and features the property market offers; they include:
– Better stability in property valuations compared to the high volatility observed in the equity market,
– Regular cash flows in the form of monthly rent from tenants,
– Benefits of amortization as rent from tenants pay down the debt and help create long-term wealth,
– Tax benefits available in the form of depreciation,
– Potential for long term appreciation in property value, and
– Availability of leverage which allows one to purchase property worth four times the money we actually have.