NTRs provide access to potential benefits of commercial real estate
Are non-traded REITs right for you?
Non-traded REITs may be an attractive investment if any of the following apply to your situation:
- A portion of the dividend of a REIT is considered return of capital and/or a capital gain; in either case, this portion is tax favored, allowing more of an investor’s capital to compound
- You seek to take advantage of a professional team that manages daily operations of the properties
- You seek to diversify your investments outside of traditional stocks and bonds
- Non-traded REITs do not require a large amount of capital to invest; non-qualified accounts start at just $10,000, while qualified accounts begin at just $5,000
Note that an investment in non-traded REITs and Hartman vREIT XXI, Inc. (Hartman vREIT XXI) differs from an investment in direct real estate. For instance, an investment in direct real estate pays income from the cash flow from the properties. Hartman vREIT XXI may pay distributions from cash flow from operations of the properties the REIT owns, as well as from other sources, including borrowings and offering proceeds, which constitute a return of principal and may lower returns. The availability and timing of distributions Hartman vREIT XXI may pay is uncertain and cannot be assured. Additionally, Hartman vREIT XXI is subject to significant fees and expenses, which may lower returns. Remember, non-traded REITs, like an investment in direct real estate,do not provide ready liquidity, and if investors are able to redeem shares, the redemption price may be worth less than their original investment.
Investing in non-traded REITs, like Hartman vREIT XXI, Inc., involves a high degree of risk. You should carefully review the “Risk Factors” section of the prospectus for Hartman vREIT XXI, Inc., which contains a detailed discussion of the material risks that you should consider before you invest in shares of our common stock.