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Which type of fee charged by nontraded REIT sponsors has the most important impact on shareholder returns over the life of the REIT?

April 14, 2020

Which type of fee charged by nontraded REIT sponsors has the most important impact on shareholder returns over the life of the REIT?

Answer: The asset management fee charged annually by nontraded REIT sponsors has by far the most important impact on shareholder returns.  While upfront loads are important, the annual payment of asset management fees, which can be up to 1.00% of total asset values, have a far greater impact on shareholder returns than any other category of fees.  

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Gil Armour, CFP
February 3, 2016

I have been using Blue Vault Partners for the past five years.  I have found them to be a valuable, unbiased resource when it comes to evaluating and comparing non-traded REITs.  The reports help me analyze which sponsors are doing a responsible job of managing their offerings.  This allows me to limit my REIT recommendations to only the most competitive products, and then track those REITs throughout their life cycle.