The Five Steps to Investing Successfully in A Commercial Real Estate Investment Trust

by | Sep 6, 2022 | Investing Advice

Investing in commercial real estate can be a great way to diversify your investments and create a passive income stream. As you look ahead to your retirement years, you want to find multiple streams of passive income so you can age with confidence in your finances and freedom over your time.

In addition to your desire to grow wealth, you may be interested in building  a legacy of creating stronger communities through your investments. It’s no longer enough to just make money. You also want to do so with integrity as you make a long-term contribution toward society.

At Premium Property Trust, our passion is developing prestigious properties that age beautifully, improve the lives of the community , and that infuse your portfolio with long-term community value we can all be proud of.. 

Most people are familiar with investing in single real estate deals or rental properties. They research a market, determine their desired neighborhood or area, work with a lender and broker, and acquire a single or small multi-family property. However, our model is different. We maintain a portfolio of community-focused commercial properties in an open fund so that you are invested in various property types across the southern US, reducing your risk substantially.

The process of investing in a real estate investment trust may be foreign to you. Let’s explore the pre-REIT funding process together, from start to finish, so you can invest confidently.


Here are the basic steps to investing in our pre-REIT fund:

  1. Determine your investing goals
  2. Register to join our investor portal
  3. Evaluate our investment opportunity
  4. Send in your funds
  5. Engage with updates of the our REIT’s performance


Step #1 – Determine Your Investing Goals

Once you decide you want to invest in a commercial real estate fund, consider both your short-term and long-term investing goals so you can be sure to find investment opportunities that best fit your goals.

Think about the amount of capital you have to invest, your preferred time horizon, tax advantages you’re looking for, and whether you are investing primarily for cash flow distributions, long-term appreciation, or a hybrid of both. Once you’ve determined your investing goals, aim to find a deal in alignment with your goals. There are countless real estate fund opportunities and markets out there. If you’re looking for a commercial real estate investment more resistant to the economic pressures of a recession, you’re in the right place.

Step #2 – Engage with Our Team

You can gain access to our investor portal at the link below. This will give you details of our fund including current holdings, current share price offerings, and subscription documents.

You can also choose to schedule a call with us. During our call, we’ll review the details of the fund, your investment goals, and answer any questions you have about the process. You’ll gain access to our investor portal where you can review the investor information and subscription documents.

Step #3 – Evaluate our Investment Opportunity

Once engaged, we can provide a full investment summary,  and host a webinar with you, which provides a full 360-degree view of our asset mix, the markets, the team, the business plan, and the projected financials.

Be sure to take time to properly vet the track record of our operating team, ask your questions, and read between the lines of any investment materials provided. You’re encouraged to explore whether the business plan has exit strategies, whether there are fair assumptions used in underwriting, and determine whether you think the proposed business plan makes sense. 

Research market trends in job and population growth. Review minimum investment requirements, projected hold time, and projected returns. Finally, attend or review the investor webinar and make sure you get your questions and reservations are addressed. 

Step #4 – Send in Your Funds

Once you’ve decided to invest in a deal, the first official step is to review and sign the PPM (private placement memorandum).

This legal document provides in-depth details about the investment opportunity, the risks involved, and your role as an investor. Although reading legal jargon may be no fun, it’s very important you gain a full understanding of the risks, subscription agreement, and operating agreement pertaining to the investment.

As part of signing the PPM, you’ll also decide how you’ll hold your shares of the entity holding the asset and whether you want your distributions sent via check or direct deposit.

Once you’ve completed the PPM, it’s time to submit your investment capital by following the wiring instructions found in the PPM document. 

Before wiring your funds, always double-check the wiring information, and let us know when you’ve initiated the transfer so we can be on the lookout. 

Step #5 – Engage In Transparency

By electing to diversify your portfolio with our pre-REIT, you’ve also signed up for a five-star investor experience. As we curate commercial real estate assets to potentially generate passive income and long-term appreciation for you, we’ll also provide transparent updates to all of our investors. 

You’ll hear about new acquisitions and sales, have insight into renovation and repurposing plans, and appreciate exclusive financial details and incentives toward investor portfolio performance. We’re always here to answer your questions, share how the on-site actions align with the business plan, and provide timely updates to our investors.

Impact Communities with Intention

By now, the process of investing in our real estate investment trust (REIT) should be more clear, and perhaps, a little less intimidating. Since we are not yet public, our model provides investors an opportunity to become one of the first one hundred participants on the ground floor of an expansive operation toward a much larger real estate portfolio of premium new urbanism projects.

REITs are designed to provide you with passive income without requiring your active involvement in acquisitions, renovations, or tenant management. Furthermore, a fund with more than one property offers you even greater security and peace-of-mind as our model spreads risk throughout all assets in the fund. 

Although this type of investment may seem daunting, we can guide you every step of the way. You’ll rest easy knowing you’ve set up your financial future for success while impacting your community for the better.