Non-tradable REITs are not listed on public exchanges and can provide retail investors with access to unaffordable real estate investments with tax benefits.
Despite not being listed, non-traded REITs are still required to be registered with the Securities and Exchange Commission and are required to file regular periodic reports with regulators.
Like exchange-traded REITs, non-traded REITs are subject to the same IRS requirements, which include a return of at least 90% of taxable income to shareholders.
The 48 Hour Rule refers to the part of the mortgage allocation process related to the purchase and sale of Mortgage Backed Securities (MBS) to be announced (TBA).
A major improvement is a long-term upgrade, adaptation, or improvement to a property that adds value to it, often including structural changes or restoration.
Effective gross income is calculated by adding the potential gross rental income to other income and subtracting the vacancy and loan costs of the rental property.
A land lease is a contract whereby the tenant can develop the property for the duration of the lease, after which it is transferred to the property owner.