Topic: How To Invest

Q: Patrick: What is your opinion of RealtyMogul Apartment Growth REIT—and of private REITs in general? Thanks for all of your advice over many years. I have a healthy portfolio because I followed your recommendations.

Article Excerpt

A: RealtyMogul Apartment Growth REIT is a private REIT (more on those below) with around $236 million in assets. The company pays quarterly distributions that yield a high 4.5%. The REIT has a 1.25% management fee. RealtyMogul Apartment Growth REIT invests in apartment buildings located in markets its managers believe can offer current income as well as growth potential. The REIT currently owns eight properties: four in Texas, and one each in Connecticut, Michigan, Florida and New York state. To boost investor returns, the REIT aims to add value to its properties through property exterior and unit improvements. They’re meant to increase rental rates and ultimately resale value. RealtyMogul Apartment Growth also adds value from other enhancements to its properties such as the addition of laundry facilities. RealtyMogul is an example of a private REIT, which is unlike conventional REITs, which are publicly traded. That means RealtyMogul calculates the value on its units (usually just twice a year, but sometimes quarterly) and needn’t reveal…