Estimated read time: 2-3 minutes
This is Fred Ball for Zions Bank, speaking on business.
Investing can be a great way to get more "bang for your buck." Real estate is one of the most common ways people like to build wealth. I recently spoke with one of the owners of a Provo-based real estate company that offers a different type of investment.
During the 1990s RealtyNet Advisors started as a full-service real estate consulting and advisory firm. One of the tools the company offered was investment in the form of real estate ownership where multiple parties could pool their money and invest in a property. Gary Leavitt, who founded the company, realized that "tenant in common" properties provided a great business possibility and decided to focus on pioneering this type of investments.
Brian Greene, a company owner, told me how a "tenant in common" property is set up. RealtyNet purchases a fully leased, commercial property, typically one occupied by a national corporation. Once RealtyNet's acquisition is finalized, the property is sold in fractional, or percentage, interests to clients who earn a return equal to their ownership in the property. For example, if someone invested 12 percent of the total purchase price, they would own a deeded interest in 12 percent of the property and would be entitled to 12 percent of the rent, tax depreciation and increase in property value over time.
Brian says RealtyNet's tenants in common properties are safe, secure and simple investments, designed to provide stable monthly income and be debt free. RealtyNet allows minimum investments of $50,000 whereas most commercial real estate investments require a minimum of $500,000 or more. The company makes it possible for small- and medium-sized investors to own high-quality, commercial real estate.
Brian says the business is distinguished by its client-centered focus. Investments are designed to minimize risk and provide long-term, attractive returns. RealtyNet Advisors conducts an exhaustive due diligence review of each property and won't purchase any property that team members wouldn't want to own themselves.
For Zions Bank, I'm Fred Ball. I'm speaking on business.