real estate investing
Download as PPTX, PDF
2 likes139 views
This document provides information about real estate investment opportunities through Broadspect Capital, a property management company based in Nairobi, Kenya. It defines real estate and describes the various types including commercial, industrial, retail, residential, and apartments. Benefits of real estate investment are outlined as income generation, appreciation, inflation hedging, and capital preservation. Options for real estate investment include direct ownership, pooling funds with partners, and real estate investment trusts. The document then focuses on REITs, describing private vs public REITs. Broadspect Capital's portfolio and investment solutions including an apartment REIT and real estate opportunities trust are presented. [/SUMMARY]
real estate investing
- 1. BROADSPECTCAPITAL www.broadspectcapital.com SIMPLICITY INTERGRITY EXCELLENCE BROADSPECTCAPITAL Real Estate Investing Supplementary Source of Income John Muthama Kamau
- 2. BROADSPECTCAPITAL www.broadspectcapital.com SIMPLICITY INTERGRITY EXCELLENCE BROADSPECTCAPITAL What is Real Estate? A piece of land, including the air above it and the ground below it, and any buildings or structures on it. Real estate can include business and / or residential properties, and is generally sold either by a realtor or directly by the individual who owns the property (for sale by owner).
- 3. BROADSPECTCAPITAL www.broadspectcapital.com SIMPLICITY INTERGRITY EXCELLENCE BROADSPECTCAPITAL Types of Real Estate Real Estate Sub Sectors Commercial Industrial Retail Services Apartments Residential Single Family Homes / Condominiums Investing in Apartments for Income & Stability A timely opportunity to invest in one of the safest sectors 1 within the real estate market income producing apartment properties in Kenya
- 4. BROADSPECTCAPITAL www.broadspectcapital.com SIMPLICITY INTERGRITY EXCELLENCE BROADSPECTCAPITAL Why invest in Real Estate
- 5. BROADSPECTCAPITAL www.broadspectcapital.com SIMPLICITY INTERGRITY EXCELLENCE BROADSPECTCAPITAL Real Estate Investment Benefits 1 2 3 4 5 Income: Provides the foundation for monthly income Investment growth: A hard asset that appreciates over time Lower volatility: Not impacted by as many short-term market forces as other asset classes Capital preservation: For several usages a fundamental staple with downside protection Inflation hedge: Real estate has a history of protecting against the destruction of wealth caused by inflation1
- 6. BROADSPECTCAPITAL www.broadspectcapital.com SIMPLICITY INTERGRITY EXCELLENCE BROADSPECTCAPITAL Options for investment in Real Estate Direct ownership Pool your money with friends/ business partners Real Estate Investment Trusts: Public and Private Mortgage Investment Trusts
- 7. BROADSPECTCAPITAL www.broadspectcapital.com SIMPLICITY INTERGRITY EXCELLENCE BROADSPECTCAPITAL Real Estate Investment Trust (REIT) What is a REIT? A REIT, or Real Estate Investment Trust, is a company that owns or finances income-producing real estate. Modeled after mutual funds, REITs provide investors of all types stable income streams, diversification and long-term capital appreciation. REITs allow anyone to invest in portfolios of properties the same way they invest in other industries through the purchase of units in the REIT.
- 9. BROADSPECTCAPITAL www.broadspectcapital.com SIMPLICITY INTERGRITY EXCELLENCE BROADSPECTCAPITAL Property Ownership vs. REIT Investment Direct Property Ownership Pride of ownership, you have a piece of property you can touch, feel and call your own You make all the decisions 100% of the profit is yours 100% of the expenses are yours Fully responsible for the day-to day maintenance and operations of the property Legally responsible for the property Only recipient of capital gains Tax structures depend on where you live & where the property is located 100% of the risk is yours Real Estate Investment Trust Shared ownership and profits Management of the property is professionally handled by an experienced property manager Expenses are managed by the trust and does not require any out-of-pocket payments from the unitholder beyond their investment Legal and financial requirements are managed by the asset and property manager Board of Trustees make decisions in the best interest of the unitholders. Unitholders have the right to vote on changes to the Declaration of Trust
- 10. BROADSPECTCAPITAL www.broadspectcapital.com SIMPLICITY INTERGRITY EXCELLENCE BROADSPECTCAPITAL Private vs. Public REIT The two main categories of REITs are; publicly traded REITs and private REITs. Differences between Public and Private REITs Publicly-Traded REIT: Trade on a public stock exchange (provide daily liquidity) Trading daily also means investors can potentially push price up or down, reflecting current market sentiment, regardless of actual market value of the asset Increased reporting costs due to requirements of a public listing History of more volatile pricing Tend to be more highly correlated to equity markets. Private REIT: Not traded on a public stock exchange (generally offer 30-day liquidity) Value is based on the value of underlying real estate or equity / lending rate (not a market-traded price) No additional reporting costs related to a public listing Rational pricing with lower volatility2 Tend to be far less correlated to major equity markets1
- 11. BROADSPECTCAPITAL www.broadspectcapital.com SIMPLICITY INTERGRITY EXCELLENCE BROADSPECTCAPITAL Priority of Payment
- 12. BROADSPECTCAPITAL www.broadspectcapital.com SIMPLICITY INTERGRITY EXCELLENCE BROADSPECTCAPITAL Potential Exit Strategy
- 13. BROADSPECTCAPITAL www.broadspectcapital.com SIMPLICITY INTERGRITY EXCELLENCE BROADSPECTCAPITAL Broadspect Portfolio Based in Nairobi Kenya, Broadspect Investment ltd is a Property Management Company that offers a growing portfolio of private investment Products. Broadspect Manages multi-residential rental properties in the country. Investment Solutions Broadspect Capital (Imarika) Apartment REIT Broadspect Capital Real Estate Opportunities Trust The Broadspect capital Investment Products Portfolio is governed by a separate independent Board of Trustees, the majority of whom are independent of management. Financing Solutions Construction and Development, Refinancing, Bridge and Mezzanine Loans and Equity Participations Property Management Services Multi-residential apartments
- 14. BROADSPECTCAPITAL www.broadspectcapital.com SIMPLICITY INTERGRITY EXCELLENCE BROADSPECTCAPITAL Investing with Broadspect Capital 1. We look at the needs of our Investors Income-oriented investors that are looking for: Cash Flow Asset Appreciation Portfolio Diversification Opportunities to Re-Invest 2. Then we offer solutions with the objectives of meeting those needs Monthly Distributions Growth Potential Diversified Portfolio Maximize Unit Value
- 15. BROADSPECTCAPITAL www.broadspectcapital.com SIMPLICITY INTERGRITY EXCELLENCE BROADSPECTCAPITAL Investing with Broadspect Capital At Broadspect Capital we are: Focused Focused on investing and managing multi-unit residential properties, student housing residences and mortgages Experienced Broadspect Investment Ltd was established in 2003. Depth of experience: Supported by experienced analysts and an experienced, majority independent Board of Trustees with executive ownership. Disciplined Established, process-driven investment and operating methodology to manage risk and uncover opportunities to maximize income and value. Diligent approach to asset and property management. Adding value by improving both the physical building and the service experience to maximize income. Adding value by improving both the physical building and the service experience to maximize income.