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Alternative Investments

Real Estate Investment Trusts (REITs)

A Real Estate Investment Trust (REIT) is an investment structured as a corporation or trust that uses the pooled capital of many investors to purchase real estate or mortgages on real estate. The investors are shareholders of the REIT. Among other things, REITs seek to provide investors with regular income in the form of distributions and capital appreciation through the growth of the company. 

Investing in REITs has become more common as many professional financial advisors recommend that a portion of your portfolio be allocated to investment real estate. 

REIT investors enjoy some of the advantages associated with property ownership, but leave the landlord hassles to others due to the centralized management of the REIT properties. 

As a REIT shareholder, you have the opportunity to earn a share of the income produced through commercial real estate in the form of a dividend/distribution—without actually having to go out and buy the real estate. In addition to the opportunity for regular income, there’s the potential for eventual capital appreciation. In addition, REITs can limit your personal risk. An investor’s liability is limited to their original capital contribution. 

What are some of the risks? 

When you invest in a REIT you are reliant on the REIT sponsor for management decisions including property acquisition. Increased specialization of many REITs in either property type or geographic locations may heighten your susceptibility to market conditions. 

To maintain qualification as a REIT, 90% of annual net taxable income must be distributed to shareholders. It might be necessary for the REIT to borrow funds in order to meet this requirement. In addition, if the acquired properties do not generate sufficient cash, a portion of your capital may be returned to you to maintain the targeted stockholder distribution rate; thus the program will have less money to invest, which may lower its overall return. 

Can you recap why I should consider non-traded and private REITs? 

Many financial and tax planners advise their clients to vary their investments, and specifically to include real estate as part of a well-balanced portfolio. As a REIT investor you could gain an interest in high-quality real estate designed to provide immediate income from tenant rents. The goal is for real estate to appreciate in value so that your interests can ultimately be sold at a profit. However, there’s no guarantee the REIT will be able to achieve these goals. 

Non-traded and private REITs may allow you to maintain a properly risk-managed portfolio, reduce volatility, and diversify your traditional stock and bond investments.


Energy Investments 

We offer green energy investment opportunities that feature:

  • Attractive risk-adjusted returns
  • Capital appreciation
  • Low correlation to traditional equity and fixed income market
  • Portfolio diversification
  • Tax-advantaged distributions
  • Access to the rapidly growing renewable energy sector

We also offer investments in development and production of domestic oil and gas properties, which enjoy tax incentives established by Congress.


Please contact us to discuss available programs and suitability for your portfolio.