Us REIT’s management team intends to pursue an investment strategy focused on building a diversified real estate portfolio by geography and by property type in opportunity zones, although until the REIT has raised substantial proceeds and achieved substantial scale, it may be limited in the number and size of acquisitions it makes, which would impact its ability to achieve the desired portfolio diversification.
WHY INVEST IN REITS?
REIT’S historically have delivered competitive total returns, based on high, steady dividend income and long-term capital appreciation. Their comparatively low correlation with other assets also makes them an excellent portfolio diversifier that can help reduce overall portfolio risk and increase returns.
REITs are total return investments. They typically provide high dividends plus the potential for moderate, long- term capital appreciation. Long-term total returns of REIT stocks tend to be similar to those of value stocks and more than the returns of lower risk bonds.
Because of the strong dividend income REITs provide, they are an important investment both for retirement savers and for retirees who require a continuing income stream to meet their living expenses. REITs dividends are substantial because they are required to distribute at least 90% of their taxable income to their shareholders annually.
REITS By The Numbers
REITS own approximately $3.5 trillion in gross real estate assets, with more than $2 trillion of that total from public listed and non-listed REITs and the remainder from privately held REITs. The economic and investment reach of those assets are felt by millions of Americans all across the country.
Our Investment Philosophy
Identify target opportunities
Underwrite based on thorough analysis of operations,
revenue projections and capital upgrades
Evaluate full range of outcomes
Identify multiple exit strategies
Negotiate best terms by leveraging existing synergies
Create debt and equity structures that provide best investment
Actively manage assets and expenditures consistently
Our Investment Implementation & Process
Our Investment Strategy
Opportunity Zone Selection
Focus on Opportunity Zones with strong underlying fundamentals
Value Assessment
Target Opportunity Zones where the risk/reward profile remains attractive
Evaluation and Selection
Analyze the properties produced by the Advisor and Board of Directors to identify target investments
Negotiating and Structuring
Secure purchase price and related terms necessary to achieve targeted rate of return
Value Added Execution
In house resources, experience, expertise and technology engaged to drive net operating income higher
Investment In A REIT Versus A 1031 EXCHANGE
An investment in US REIT offers several advantages over a 1031 Like-Kind Exchange:
A 1031 exchange only allows for the deferral of capital gains taxes. However, a reinvestment of capital gains into US
REIT can actually result in a reduction in taxes due.
Investors in US REIT will receive a 10% step-up in the basis of the capital gains that are reinvested into US REIT, if those shares are held for 5 years, and an additional 5% step-up in basis if those same shares are held for 7 years, therby excluding up to 15% of the original capital gains from taxation.
A 1031 Exchange only applies to capital gains taxes from the sale of real property. However a reinvestment of capital gains into US REIT can be from the sale of any asset type (not just real property), including such assets as: stocks, bonds, commodities, cryptocurrencies, etc.
A 1031 Exchange does not eliminate capital gains taxes on the appreciation of the new real estate investment. By contrast, US REIT stockholders are exempt from federal taxation on capital gains derived from the appreciation of their investment in US REIT shares, if those shares are held for at least 10 years.
Additionally, a 1031 Exchange requires rolling over the entire original investment (basis + gains) into one or more separate real estate transaction swaps. By contrast, US REIT requires only reinvestment of the gains, the actual basis can be withdrawn tax free.
Lastly, the reinvestment of capital gains into US REIT occurs through a simple single transaction, and gives the investor access to a diversified actively-managed portfolio of real estate assets throughout the United States.
OPPORTUNITY ZONE INVESTMENTS
U.S. REIT INTENDS TO OPERATE AS A QUALIFIED OPPORTUNITY FUND
U.S. REIT intends to acquire "qualified opportunity zone property" as defined by the Internal Revenue Code.
U.S. REIT will seek to engage primarily in the development, redevelopment, improvement, renovation, rehabilitation or construction of real estate properties in qualified opportunity zones throughout the United States.
Invest With US Real Estate Investment Trust, Inc.
In times of economic uncertainty, investors strive to reduce the anxiety associated with the volatility of the public markets. Even when the markets are good, depending on an investor’s life stage, a consistent return on capital becomes a critical investment strategy.
With an investment in US Real Estate Investment Trust, Inc., shareholders own a piece of a private, strategically diversified real estate portfolio, not directly tired to the public markets. Our goal at US Real Estate Investment Trust, Inc. is to generate a clear and predictable cash flow stream, even during challenging economic times, in order to provide our shareholders with consistent performance and tax-advantaged income, paid out or reinvested on a monthly basis.
We would welcome the opportunity to discuss US Real Estate Investment Trust, Inc.’s investment offering with you.
The information here has been prepared on a confidential basis solely for your informational purposes and is being furnished to a limited number of accredited investors as such class is determined in accordance with federal securities laws for discussion purposes only. It is not an offer to buy or sell or a solicitation of an offer to buy or sell any limited partnership interests, securities or to otherwise participate in any investment or trading strategy (”Investment”).
If any offer of Investment is made, it shall be pursuant to a definitive Operating Agreement, Private Placement Memorandum subscription documents and/or other relevant definitive legal documents, prepared by or on behalf of the Opportunity which would contain material information not contained herein and which shall
supersede the information herein in its entirety (“Definitive Legal Documentation”). The Opportunity mentioned in this document will not be registered in your jurisdiction and to the fullest extent possible any such offer will be made only pursuant to private placement exemptions available. It may therefore not be eligible for sale or investment in your state or county and may not be suitable for you or certain types of investors.
As such, any decision to make an investment should be made after reviewing the Definitive Legal Documentation for the Opportunity which will contain representations by you that you are a sophisticated investor meeting any relevant regulatory requirements and that you have conducted such investigations as you deem necessary and after consulting your own investment, legal, accounting and tax advisors in order to make an independent determination of the suitability and consequences of making an Investment.
Although the information provided on the following pages has been obtained from sources which US Real Estate Investment Trust, Inc. believes to be reliable, US Real Estate Investment Trust, Inc. does not represent or warrant its accuracy and such information may be incomplete or condensed and must not be relied upon by you. The information is subject to change without notice. Since US Real Estate Investment Trust, Inc. furnishes all information as part of a general information service and without regard to your particular circumstances, US Real Estate Investment Trust, Inc. shall not be liable for any damages arising out of any inaccuracy in the information.
Investing is speculative and may involve substantial investment, liquidity and other risks. Investments can be leveraged and performance results can be volatile and may result in loss of principal. Past performance is no indication of future results. There is no secondary market for the investors’ interests and high expenses may offset any profits the Opportunity may generate.