Bond Fund Alternative
REIT-OH is CORI LLC’s bond fund alternative, we provide a alternative fixed-income investment fund secured by real estate. The investment model for the REIT-OH is a buy rehab hold or in certain areas of Central OH buy rehab and flip. We are buying real estate at 42% to 54% of the area After Repair Value. Our team is rehabbing the properties for 28% to 16% of the area After Repair Vaule for a all in cost of 70% of what homes are selling for in the area. This model protects our REIT-OH investors and makes our investments secured. We offer every investor a 1st position lien on every property, in any of the REIT-OH alternative fixed-income investment funds. All the deeds are held in escrow with a third party escrow company . So worst case scenario you collect the deeds for your properties and sell them to get your money back.
REIT-OH fund manager is Roger Loesel with Ditter & Associates real estate brokerage. All of CORI LLC’s REIT-OH fund servicers are licensed, bonded, and insured through the state of Ohio. Title policies are issued on every property that the REIT-OH fund buys.and puts into the fund. So what that means is in this market CORI LLC’s REIT-OH fund is the bond alternative for some investors.
In addition, interest rates are expected to rise in the near future. (The Federal Reserve decided not to raise interest rates in June 2015, but comments Wednesday 6/17/2015 suggests the long awaited rate hike could come in September according to CNN Money .) When that happens, bond prices will almost certainly decline. If you are holding bonds for their interest, and you recently have bought them, it seems likely that your interest rate being earned is quite low making CORI’s REIT-OH fund a smarter investment. What will happen when rates go up? You will still be earning a low rate and losing money. In that case, it seems prudent to sell some portion of your bond fund — perhaps even all of them, if they are ultra-safe and ultra-low-interest-earning, get into cash, and start looking for a future opportunity to buy a bond alternative like CORI’s REIT-OH fund. Selling now will most likely give you the biggest capital return on the sale; remember, the prices will drop when rates go up. However, if you have bonds from a while ago, when rates were significantly higher, you are earning good interest from them. It wouldn’t make much sense to sell them now, UNLESS you anticipate a need for cash in the near future (or, at least, before you think rates will rise significantly, hurting your bonds’ sale value).
The U.S. economy is likely to continue its recovery next year, with growth of 2.5 to 3 percent, says Nick Colas, chief market strategist of Convergex brokerage in New York City. Meanwhile, the European economy is still quite weak, he notes. And while small-cap companies typically earn most of their revenue domestically, larger companies generate 20 to 30 percent of their revenues from European countries, Colas says.”That’s a tough hole to fill in 2015. It looks like there will be a triple-dip recession in Germany,” he says. In addition, the Russell 2000 small-cap stock index has underperformed the S&P 500 this year, he points out. While the S&P 500 has returned 12.4 percent, the Russell 2000 has returned only 2 percent. For all of these reasons,
Colas says .
In general, rates for traditional fixed-income investments have been horrible and aren’t getting any better. But there is light at the end of the tunnel. You just have to look in a different tunnel. Achieving a higher rate of return on fixed income is always possible, but you must be more flexible than in the past. The traditional fixed-income investments like CDs, money market fund, Treasuries and bond fund investments are not the place to look for yield. The real place to find higher income is in the “alternative fixed-income” space—lesser known investments that don’t follow the mainstream rules of fixed income, and don’t have all of the same qualities . Non-Public Real Estate Investment Trusts (REITs). CORI’s REIT-OH funds are not the traditional REITs that trade on an exchange. Public REITs are too volatile. Private REITs typically perform steadily and are currently providing mid to high single-digit dividends. Again, do your homework. Consultant with your professional financial planner, attorney, or CPA.