Review of Rich-Uncles real estate investment trust (Part 1)

Review of Rich-Uncles real estate investment trust (Part 1)



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Also view part 2 of my review here

Additional points: It has been suggested that non-traded REIT’s in general are less volatile than publicly traded REITs. This is a red herring assertion on many levels. For starters, if an investor desires less volatility, then non-traded REITs should be compared to REIT index funds. Index funds are inherently less volatile than individual REITs because they are highly diversified. For example Vanguard’s REIT index fund VNQ is diversified across 148 different companies, all of which have market caps of at least 100 million dollars.
Nevertheless, for what it’s worth, are non-traded REITs less volatile than publicly traded REITs? Non-traded REIT’s face the SAME market forces as public REITs. Renters will pay what the market dictates, real estate will be bought and sold for what the market dictates, etc. A seemingly “less volatile” share price of a non-traded REIT can be illusionary and misleading. Why? Let me quote the Securities Litigation and Consulting Group…

“The market price of a non-traded REIT does not reflect the underlying value of the REIT’s holdings nor the potential for future dividend payments. In a free and efficient market, an asset’s price fluctuates with investors’ expectations for the changes in the asset’s future value. In equity market, the share price carries information about investor’s beliefs about future dividends and value growth, including expectations regarding the ability of that firm to sustain its business model. The prices of non-traded REITs do not reflect this information because they are not openly traded – prices are set at the discretion of management, and can be highly misleading as they can be unrelated to the value of the REIT or its holdings. A more accurate measure of a non-traded REIT’s value would be the net asset value of its holdings.”

The idea that nontraded REITs aren’t volatile is a “misdirection,” says Joseph Harvey of Cohen & Steers, one of the biggest REIT investors in the world. He says “You can’t measure the volatility of these investments because they do not trade.”
While they are not exposed to the day-to-day volatility of the public markets, REIT NAVs are exposed to economic volatility. Real estate is not immune to economic changes.

But most importantly, what really matters is the end result (return on investment) when comparing a non-traded REIT to its BENCHMARK — not the S&P 500 index.

Another problem with REITs is that you have the ADDED cost of winding down the whole operation by selling property.

Do your due diligence! Here’s some links pertaining to this review…

UPDATE: According to a YouTube poster, most if not all of the current Rich Uncles dividend is not coming from rental income. He says “The latest financial filing I looked at indicated that the REIT currently is losing money on an operating cash flow basis, which means they’re paying investors with borrowed money or the dividend is really a return of principal.”

If you need money advice then hire a fee-only fiduciary on a one-time or one-task basis. This video is not intended as investment, tax, accounting or legal advice, as an offer or solicitation of an offer to buy, hold or sell, or as an endorsement, of any company, security, fund, product or other offering.

the Annuity Slayer

Darn It, I’m working as a free real estate consultant

Darn It, I'm working as a free real estate consultant



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15 years is a real state broker real estate instructor and manage 230 properties

HoboTraveler

Enterprise Real Estate Home for Sale. $440,000 4bd/5ba. – EVELYN HITCH of C21RegencyRealty.com

Enterprise Real Estate Home for Sale. $440,000 4bd/5ba. - EVELYN  HITCH of C21RegencyRealty.com



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Listing: 435473
Property Type: Residential
Price: $440,000
Beds: 4
Baths: 5
Sq. Ft.: 4818
Year Built: 1967
Lot Size: 200×200
Number of Acres: 0.93
Units: 0
City: Enterprise
Address: 226 Lakewood Drive

c21regencyrealtycom

Enterprise Real Estate Home for Sale. $210,000 4bd/3ba. – TERRI T AVERETT of C21RegencyRealty.com

Enterprise Real Estate Home for Sale. $210,000 4bd/3ba. - TERRI T AVERETT of C21RegencyRealty.com



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Listing: 445520
Property Type: Residential
Price: $210,000
Beds: 4
Baths: 3
Sq. Ft.: 2553
Year Built: 1973
Lot Size: 100x149x166x188
Number of Acres: 0.48
Units: 0
City: Enterprise
Address: 102 Olive Springs Drive

c21regencyrealtycom

Geneva Real Estate Home for Sale. $104,500 3bd/2ba. – JUDY S DUNN of C21RegencyRealty.com

Geneva Real Estate Home for Sale. $104,500 3bd/2ba. - JUDY S DUNN of C21RegencyRealty.com



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Listing: 445452
Property Type: Residential
Price: $104,500
Beds: 3
Baths: 2
Sq. Ft.: 1344
Year Built: 2001
Lot Size: 105x150x31x91x83x189
Number of Acres: 0.47
Units: 0
City: Geneva
Address: 504 N Iris Street

c21regencyrealtycom

Jasper Real Estate Home for Sale. $159,900 2bd/2ba. – Linda Ingram of ByarsRealty.com

Jasper Real Estate Home for Sale. $159,900 2bd/2ba. - Linda Ingram of ByarsRealty.com



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Listing: 19-67
Property Type: Residential
Price: $159,900
Beds: 2
Baths: 2
Sq. Ft.: 1847
Year Built: 1960
Units: 0
City: Jasper
Address: 1012 VALLEY Rd
Date Listed: 2019-01-09

ERAbyarsrealty

Nauvoo Real Estate Home for Sale. $174,900 4bd/2ba. – K. Renae Berry of ByarsRealty.com

Nauvoo Real Estate Home for Sale. $174,900 4bd/2ba. - K. Renae Berry of ByarsRealty.com



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Listing: 17-851
Property Type: Residential
Price: $174,900
Beds: 4
Baths: 2
Sq. Ft.: 2030
Number of Acres: 17
Units: 0
City: Nauvoo
Address: 766 RADIANT CITY Rd
Date Listed: 2017-04-10

ERAbyarsrealty

Fort Payne Real Estate Land for Sale. $418,250 – Glenn Horton of southernpropertiesagency.com

Fort Payne Real Estate Land for Sale. $418,250  - Glenn Horton of southernpropertiesagency.com



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Listing: 1109516
Property Type: Land
Price: $418,250
Number of Acres: 239
Units: 0
City: Fort Payne
Address: SAND VALLEY ROAD NW

Southern Properties Agency, Inc.

Enterprise Real Estate Home for Sale. $107,000 3bd/2ba. – EDITH D HALL of C21RegencyRealty.com

Enterprise Real Estate Home for Sale. $107,000 3bd/2ba. - EDITH D HALL of C21RegencyRealty.com



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Listing: 445462
Property Type: Residential
Price: $107,000
Beds: 3
Baths: 2
Sq. Ft.: 1387
Year Built: 1969
Lot Size: UNKNOWN
Units: 0
City: Enterprise
Address: 401 Dixie Drive

c21regencyrealtycom

Samson Real Estate Home for Sale. $89,000 3bd/2ba. – JUDY S DUNN of C21RegencyRealty.com

Samson Real Estate Home for Sale. $89,000 3bd/2ba. - JUDY S DUNN of C21RegencyRealty.com



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Listing: 445453
Property Type: Residential
Price: $89,000
Beds: 3
Baths: 2
Sq. Ft.: 1753
Year Built: 1991
Lot Size: 153 x 176
Number of Acres: 0.62
Units: 0
City: Samson
Address: 104 S Wise Street

c21regencyrealtycom

Dothan Real Estate Home for Sale. $32,000 2bd/1ba. – NANCY CAFIERO of C21RegencyRealty.com

Dothan Real Estate Home for Sale. $32,000 2bd/1ba. - NANCY  CAFIERO of C21RegencyRealty.com



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Listing: 445497
Property Type: Residential
Price: $32,000
Beds: 2
Baths: 1
Sq. Ft.: 1014
Year Built: 1953
Lot Size: 75×145
Number of Acres: 0.3
Units: 0
City: Dothan
Address: 706 Virginia Drive

c21regencyrealtycom

Enterprise Real Estate Home for Sale. $184,500 3bd/4ba. – TERRI T AVERETT of C21RegencyRealty.com

Enterprise Real Estate Home for Sale. $184,500 3bd/4ba. - TERRI T AVERETT of C21RegencyRealty.com



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Listing: 445094
Property Type: Residential
Price: $184,500
Beds: 3
Baths: 4
Sq. Ft.: 2430
Year Built: 1981
Lot Size: 221x245x179x250
Number of Acres: 1.14
Units: 0
City: Enterprise
Address: 103 Broken Arrow Drive

c21regencyrealtycom

Enterprise Real Estate Home for Sale. $79,500 2bd/3ba. – DIANA CREWS of FortRuckerAreaHomes.com

Enterprise Real Estate Home for Sale. $79,500 2bd/3ba. - DIANA  CREWS of FortRuckerAreaHomes.com



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Listing: 438913
Property Type: Residential
Price: $79,500
Beds: 2
Baths: 3
Sq. Ft.: 1380
Year Built: 1998
Lot Size: 20×100
Number of Acres: 0.05
Units: 0
City: Enterprise
Address: 110 Woodrun Drive

fortruckerareahomes

Enterprise Real Estate Home for Sale. $263,500 4bd/3ba. – KARREN T LEWIS of FortRuckerAreaHomes.com

Enterprise Real Estate Home for Sale. $263,500 4bd/3ba. - KARREN T LEWIS of FortRuckerAreaHomes.com



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Listing: 445377
Property Type: Residential
Price: $263,500
Beds: 4
Baths: 3
Sq. Ft.: 2182
Year Built: 2009
Lot Size: 99.26×177.17×121.85×174.76
Number of Acres: 0.45
Units: 0
City: Enterprise
Address: 125 Brookwood Drive

fortruckerareahomes

Enterprise Real Estate Home for Sale. $159,000 3bd/2ba. – KARREN T LEWIS of FortRuckerAreaHomes.com

Enterprise Real Estate Home for Sale. $159,000 3bd/2ba. - KARREN T LEWIS of FortRuckerAreaHomes.com



Views:0|Rating:0.00|View Time:2:9Minutes|Likes:0|Dislikes:0
Listing: 445329
Property Type: Residential
Price: $159,000
Beds: 3
Baths: 2
Sq. Ft.: 2400
Year Built: 1978
Lot Size: 135×150
Number of Acres: 0.46
Units: 0
City: Enterprise
Address: 310 Richland Avenue

fortruckerareahomes