Youtor
Understanding NonListed REITs
>> YOUR LINK HERE: ___ http://youtube.com/watch?v=ELCsfxMf4co
Prospectus: https://www.colecapital.com/prospectuses • Investments in Cole Credit Property Trust V, Inc. (CCPT V), Cole Office Industrial REIT (CCIT III), Inc. and Cole Real Estate Income Strategy (Daily NAV), Inc. (INAV) involve a high degree of risk. Prospective shareholders should consider these securities only if they can afford a significant decline in, or a complete loss of, the value of their investment. • Each REIT offering is made by means of a prospectus only to qualified prospective shareholders who meet minimum suitability requirements, as well as suitability standards determined by a financial advisor. Offering materials must be preceded or accompanied by the pro¬spectus for the respective REIT. Please read the prospectus in its entirety before investing and learn more about the risks associated with this offering, including, but not limited to: • • The REITs start as a “blind pool,” as they have not identified all of the properties they intend to purchase, and the REITs have a limited operating history. There can be no guarantee that the REITs will meet their investment objectives. • • These investments have limited liquidity and are not required, • through their charters or otherwise, to provide for a liquidity event. There is no public market for each of the non-listed REITs, and one may never exist, for the shares of their common stock. There is also the possibility that even if shareholders were able to sell their shares, they may have to sell them at a substantial discount. Shareholders should have an expected investment time horizon in excess of seven years, if at all. • • There is no guarantee that shareholders will receive a distribution. Distributions have been paid from proceeds of the offering and may be derived from sources other than cash flow from operations, including borrowings, or sales of assets, and there is no limit on the amounts that may be paid from such other sources. Pay¬ments of distributions from sources other than cash flow from operations reduce the amount of capital available for real estate investments and may decrease or diminish a shareholder’s interest. • • There are conflicts of interest between the REITs and their advisors, and their affiliates, including payment by the REITs of significant fees to their advisors and affiliates. • • Economic factors may adversely affect the commercial real estate market, including: changes in the economy, tenant turnover, interest rates, availability of mortgage funds, operating expenses, cost of insurance and each tenant’s ability to continue to pay rent. • • If one of these offerings fails to qualify as a REIT, it will be subject to federal income tax. Cash available for distributions could decrease materially and adversely affect the return on your investment. • • Leverage (debt) is borrowed money. It is often used to supplement or enhance the total return on an investment. However, leverage, when used excessively, can have a significant negative impact on the performance of an investment. Leverage risks may include an inability to pay off the interest from the cash flow from the property, rates that can adjust to higher levels, and the potential for default on loans. In an effort to maximize the performance of a REIT portfolio, a number of factors are considered in evaluating financing options. Some of the more common factors include cost of capital, fixed versus variable debt, loan-to-value ratio and debt coverage ratio. The use of leverage during the offering period could limit the amount of cash available to distribute to shareholders and could result in a decline in the value of an investment in the REITs. • In addition to the risks noted above, prospective shareholders should consider the following risk factors associated with INAV: • • The INAV redemption plan will provide shareholders with the opportunity to redeem their shares on a daily basis, but redemptions will be subject to available liquidity, board discretion and other potential restrictions. • • INAV is a perpetual-life investment vehicle of indefinite duration. INAV’s charter does not require it to effect a liquidity event at any point in time in the future. • • The valuation methodologies used by INAV’s independent valuation expert to determine its daily net asset value (NAV) involve subjective judgments and estimates, and may not accurately reflect the actual price at which its assets could be liquidated on any given day. The NAV of any share class at any given time will not reflect any obligation to pay future dealer manager and distribution fees.
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