Private REIT Investing Works for Investors | The Peak Group

Before we even began considering Real Estate Investment Trusts (REITs) as the next phase of our financial freedom here at The Peak Group, we got our start as bootstrapping investors, contractors, and property managers who were all looking for something more out of the industry. Reliable property management and trustworthy construction services are more of a rarity in this world than we thought—so we set out to build something better.

As a united team, we knew we were making powerful changes in the residential real estate and turnkey property investing sector because we met unmet needs in the DFW area. We decided to expand to provide the same great level of services the investors we serve in DFW have come to expect. However, we realized that these facets of rental property ownership were not the only areas that were lacking when we began to look at our options for both publicly-traded and private REITs.

We knew that a REIT structure could promise better returns for investors than even the most hands-off of property management. We wanted to bring that next level of investing to a community that had joined this venture with the understanding that we would care for their investment properties as if they were our own.

However, just as we had discovered with turnkey investing, we found that many publicly-traded REITs—and even the ‘available stock’ of private REITs—simply didn’t meet our expectations for the kind of return we wanted to be able to provide. So, we started our own.

business partners, partnership concept with two businessman handshake

Why We Wanted to Build a Better Private REIT

However, we get asked this question from time to time by those interested in becoming a part of what The Peak Group has to offer: Why should I invest in a private REIT structure? It’s a legitimate question with the way that privatized REIT investing has become villainized by even trusted sources like The Motley Fool. Still, even they admit that the majority of issues private REITs suffer from that have tarnished their image over time stems from poor management and a lack of transparency. We set out to change that with the Peak Housing REIT.

Management Partners That Are Actually Partners

This mass generalization of private REIT structures as negative stems primarily from management that isn’t as invested in the success of the REIT as the operating unitholders who have placed their trust—and their properties—in the hands of the operators.

At The Peak Group, we’ve already accounted for this potential shortcoming of privatized REIT structures by ensuring we’re just as invested in your success! More than $3MM of our sponsor’s wealth is invested alongside our investors in the Peak Housing REIT. This is our commitment to you that we’re serious about our skills and what we can deliver because we’re rowing the same boat alongside you.

Refreshing Levels of Transparency

Our origin as investors and property managers means we’re also committed to radical transparency—the other primary shortcoming that gives private REIT investing a poor name in the real estate world. We reaffirm our dedication to transparency every quarter by providing our investors with best-in-class reporting.

Accessible Investing Options

Additionally, we’ve removed many of the barriers to entry that make it difficult for other investors of varying experience to get involved in the benefits of passive real estate investing. While many residential private REITs limit access by imposing stiff minimums for entry, at The Peak Group, we know that not every accredited investor even has an investment property to contribute. To make the Peak Housing REIT accessible, we set our minimum at $25,000. This ensures that anyone can invest—even if they don’t currently own property.

We know that multiple generations—particularly millennials with Generation Z soon to follow—have been pegged as long-term rental lovers. In some ways, it’s true: they do make up the majority of the rental population. However, both groups also have a deep-seated desire for a steady home, especially as they age.

Worried man calculating bills while his wife and daughter sitting on sofa in living room

With the transition to luxury properties as the bread-and-butter of most home builders, these generations are increasingly forced out of owning and benefitting from the kind of equity real estate can provide. With lending restrictions tightening nationwide as a result of COVID-19—even with interest rates lower than they have been in years—it’s harder to get started for those seeking homeownership. This is partly what makes single-family residential properties so desirable to invest in and provide.

An UPREIT structure allows other accredited investors access to real estate investing for less than the now-expected 20% down payment on even a modest rental home! This puts the many benefits of rental property ownership within reach for would-be investors who would have otherwise been edged out of the market. All this comes with a bonus: the reduced risk, greater diversity, and tremendous ROI that hands-off, private REIT investing provides.

We Are Your Guide to UPREIT’s

We are investors that serve investors, and we are committed to what we do because we know the power of real estate can lift all boats—when it’s in the right hands and managed with care. Some of the assertions made about private REIT structures are true: not every REIT can promise the same level of oversight and transparency.

The Peak Housing REIT puts our skills to work for you so that we can put you first, and it’s why we feel confident guiding you towards a better option than a self-managed property of portfolios—or no portfolio at all. Get in touch with us to learn more about the financial freedom that only truly passive real estate investing can provide.