REAL ESTATE IPOS- THE GOLD RUSH

Of the Regulation A+ offerings filed and cleared with the SEC, the overwhelming number are real estate IPOs. This is because they fill a niche and offer a possible investment for otherwise investment-shy Americans.

Many Americans lost money in the 2008 financial crisis. Although this also affect real estate values, real estate has historically been easier investment because it is tangible. For example, Rich Uncles Investors is carrying out a 21-state Regulation A+ offering in the amount of $1 billion. The REIT recently announced its first monthly distribution of 6.5% annual return to its investors. This REIT purchases commercial properties, which it rents to high-quality retail tenants. (Disclaimer: we have no affiliation with Rich Uncles and are not involved in this offering.)

Although there are several publicly traded REITs with returns similar to this, the public advertising used by Rich Uncles shows what can be done with Regulation A+. You can bet that others will follow the lead of this offering.