Jacob Frydman on the Attraction of REITs for Property Income Investors

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REITs were established by the United States Congress in 1960

In a groundbreaking study conducted by economic think tanks based at the University of California-Davis, University of Bonn and the Deutsche Bundesbank (Central Bank of Germany), expert consensus concludes that between 1870 and 2015, investors based in average wealthy countries (ie. USA, Japan, Germany) experienced annual returns on housing market investment of slightly over 7%, demonstrating these assets were half as risky as equities and slightly less risky than bonds over the same timeframe. Safeguarding hard-earned income through the purchase of property continues to lead as a time-tested winning strategy and as eminent real estate consultant and developer Jacob Frydman indicates, there are many market access options for those who are keen. Frydman points to Real Estate Investment Trusts (REITs) as an advantageous component of a balanced financial portfolio, which offer the opportunity to enjoy gains without the risks of direct realty purchases.

REITs were established by the United States Congress in 1960 with an aim to provide investors with access to ownership in specialized commercial real estate portfolios with varied income-production offerings. REITs are defined as property shares in developments such as shopping malls and multi-unit residential buildings offering profit generation through tenant payouts. Since its enactment in the US, variations of this model have been adopted and implemented in more than 30 countries globally. According to the National Association of Real Estate Investment Trusts (NAREIT), approximately 80 million Americans have directed funds towards REITs through retirement saving plans and other such mutual funds, with the US economy benefiting from close to $52.8 billion in new construction and routine capital expenditures for property maintenance in 2016 alone. Current market valuation of the entirety of REITs in the US is an estimated gross of $3 trillion in assets, and what Jacob Frydman observes as one of the most influential investment products of both the domestic and international financial sectors.

Faced with a global economy defined by highly volatile markets increasingly shaped by political factors, REITs remain a safe choice for the cautious investor due to the ever-increasing demand for housing and commercial real estate. Furthermore there are many benefits of mixing REITs with financial holdings including but not limited to dividend potential, tax efficiency, greater ability to apply leverage and to hedge against stock market volatility. Perhaps one of the most attractive factors of REITs for many is the great degree of control they provide when building and directing investment strategy with the freedom to carefully select specific asset types, to determine how much debt to employ and to participate in active management of property.

Jacob Frydman is a prominent real estate investor and consultant based in New York. He is an industry leader with an impeccable investment portfolio, having successfully executed property development projects valued at over $2 billion dollars, with a specialized career spanning more than 3 decades. Jacob Frydman completed a B.S. in Finance from Boston University and a J.D from Case Western Reserve University School of Law and is a frequent guest speaker on real estate finance at Columbia University and the New York Law School. In addition to his distinctive career, he is an active philanthropist and contributor to various charitable organizations such as the Chabad of Duchess Country, Brem Foundation of Washington, DC and the National Committee for Furtherance of Jewish Education (NCFJE).


Jacob Frydman - Blog - JacobFrydmanNews.com: http://JacobFrydmanNews.com

Jacob Frydman - Renowned Real Estate Investment Consultant: https://jacobfrydmanrealty.com

Jacob Frydman - Real Estate and Private Equity Investments Expert: https://jacobfrydmannewyork.com

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