FAQs

A Real Estate Investment Trust (REIT) is an entity that owns, operates, or finances income-producing real estate. REITs provide investors with an opportunity to invest in large-scale, income-producing real estate without having to buy, manage, or finance any properties themselves. They offer a way to earn a share of the income produced through commercial real estate ownership.

Low rise rental assets include single family homes, duplexes, triplexes, quadplexes and smaller multifamily assets that are offered for rent to prospective tenants. These properties typically cater to families or individuals looking for more space and privacy compared to larger multi-family apartment buildings or condominiums which may also be offered for rent.

The minimum investment amount required to invest in the Avanew SFR REIT is $25,000. This allows investors to participate in the REIT and benefit from the income generated by the properties within the portfolio.

Yes, to invest in the Avanew REIT, you need to be an accredited investor. This ensures compliance with regulatory requirements and helps protect investors by ensuring they have the financial knowledge and capacity to handle the risks associated with such investments.

Yes, Avanew REIT’s structure provides for the ability to receive registered funds, such as those in a Registered Retirement Savings Plan.

Distributions are typically distributed on a quarterly basis, depending on the REIT’s performance and financial policies. The REIT is expected to first scale up its asset base over 2 years and, once stabilized, provide a recurring distribution to investors. Investors can expect their distributions to be paid out regularly, providing a steady income stream from their investment.

Distribution amounts are determined based on the net income generated by the properties within the REIT’s portfolio, after accounting for operating expenses, maintenance costs, and other financial obligations. The REIT’s management team will review the financial performance regularly and set distribution payouts that align with the overall profitability and cash flow of the REIT.

Rents are determined by analyzing market conditions, comparable rental rates in the area, property location, and the features and condition of the property. Avanew also considers supply and demand dynamics, and may adjust rents based on feedback and market trends to remain competitive.

A levered property is financed using debt, such as a mortgage, to increase potential returns on investment. This leverage can amplify both potential gains and potential losses. A non-levered property is purchased entirely with equity, meaning no debt is used, which reduces financial risk.

Yes, the Avanew REIT may utilize leverage to enhance returns on its investments. By strategically using debt financing, we can acquire more properties and potentially increase overall investment returns, although this also involves higher financial risk. Many REITs utilize some form of leverage or debt financing to enhance returns for investors.

Avanew REIT properties are managed by a dedicated team of property management professionals who handle day-to-day operations, maintenance, tenant relations, and leasing activities. This ensures high-quality service and efficient management of the rental properties.

Avanew selects homes based on a comprehensive analysis of factors including property condition, location, potential rental income, appreciation prospects, and market demand. Our acquisition team uses data-driven insights and local market expertise to identify properties that align with our investment criteria and goals.

Avanew’s tenant selection process involves thorough screening to ensure reliable and responsible tenants. This includes credit checks, background checks, employment and income verification, rental history, and personal references. Our goal is to select tenants who will pay rent on time and take good care of the property.

Returns from the Avanew REIT can vary based on market conditions and the performance of the underlying properties. Historically, low rise rental investments have offered attractive returns through rental income and property appreciation. However, exact returns can fluctuate and returns are not guaranteed. Prospective investors should review all available information on the Avanew REIT before determining if they would like to invest.

Avanew determines when to sell an individual property based on factors such as market conditions, property appreciation, rental income performance, and overall investment strategy. We aim to sell properties when it maximizes returns for our investors, taking into consideration both current market value and future growth potential.