Direct Investment Overview

Non-Traded REITs are total return investments that typically provide high dividends plus the potential for moderate, long-term capital appreciation. REITs are attractive additions to investment portfolios because there is a relatively low correlation to publicly traded real estate stock returns as well as providing diversification. In addition, reduced volatility and simple tax treatment are appealing traits of non-traded REITs.

 Private real estate programs, such as Limited Partnerships, TICs, and Private REITs, offer access to investment grade real estate, professional expertise, and the benefits of ownership without the daily issues that often accompany them. These programs are for accredited investors only and are not registered with the SEC which typically means higher minimums and less associated administrative costs.

Although a 1031 exchange falls under private real estate, it is a different type of investment. These are used for clients that own investment real estate they would like to sell but want to stay invested and defer the taxes owed from the sale. The IRS code 1031 allows for the exchange of investment real estate while deferring the taxes. There are many rules associated with 1031 exchanges. ProEquities can help you understand and navigate these rules before you proceed with your client.

When inflation and rising interest rates erode bond and stock values, hard-assets, such as equipment and real estate, potentially increase in value. That’s just one reason why leasing programs can be so popular with investors: it’s a way to invest in the growth of the global economy for a contract-driven yield (vs. a market-driven yield) that is inversely correlated to paper assets. These programs may also provide tax deductions against the income generated.

There are two types of Oil & Gas programs available through ProEquities: developmental and exploratory. Developmental drilling programs can provide significant tax benefits to investors as well as possible income. The exploratory programs are very profitable when oil and/or gas is discovered. These programs provide further options in helping you map out your clients individual investment strategies.