High-yield real estate investment
Investors in the stock and crypto markets have the option to gain exposure in the real estate sector by investing in different types of real estate investment trusts (REIT). REITs are involved in the acquisition, development, and management of commercial, industrial, and residential properties. They are mandated to give back 90% of their funds from operations (FFO) as dividends, which results in REITs having higher dividend yields than normal stocks.
With the ease of Covid-19 restrictions, many sectors made a comeback in 2021, giving the real estate market a boost. This allowed the NAREIT’s index of all real estate investment trusts (REITs) to post strong returns in 2021.
Metain follows Residential REITs that own and operate multi-family rental apartment buildings as well as manufactured housing.
In places like New York and Los Angeles, the high cost of single homes forces more people to rent, which drives up the price landlords can charge each month. As a result, the biggest residential REITs tend to focus on large urban centers.
Generally, when there is a net inflow of people to a city, it’s because jobs are readily available and the economy is growing. As long as the apartment supply in a particular market remains low and demand continues to rise, residential REITs should do well.
Metain Real Estate investment theory
- Metain is continuously finding and selecting the urban areas with the highest yield and most interesting perspectives for the future.
- Metain buys up properties, restructures them, and at times even invests in the requalification of the whole neighborhood.
- Local partners (property managers), who take care of all bureaucratic and operational matters, search for tenants for the properties.
- Metain and its partners only rent their properties to carefully selected tenants, in order to provide the buyer a revenue that is both immediate and continuous over time.
- The costs of the property management company, taxes, and eventual insurance, are known and subtracted while calculating the net yield of the investment.
- Given that we have recently renovated the properties, maintenance costs are minimal.
Metain is the first co-investment platform that is highly profitable, transparent, safe, and powered by blockchain technology, where crypto investors can find shelter for their hibernated assets during the winter.