An accredited investor is generally a person that can satisfy one or more of the following requirements: income or net worth. An accredited investor must demonstrate an annual income of $200,000, or $300,000 for joint income, for the last two years with expectation of earning the same or higher income in the current year. Or, an accredited investor must have a net worth exceeding $1 million, either individually or jointly with a spouse (excluding the value of the person's primary residence).
Usually referring to an asset, book value is an asset's value calculated by taking the cost of the asset minus depreciation.
Commercial real estate investments can be divided into different segments: value add, opportunistic, and core. Core investments are considered the least risky of the segments because they are stabilized investments that are usually fully leased and located in major core markets. These properties often have long term leases and are located in desirable locations. The buildings are well kept and require limited improvements on behalf of the new owner. Therefore, these type of real estate investments generally provide predictable cash flow with less risk to the investor relative to enhanced return and opportunistic real estate assets.
Cash paid to stockholders of record of a company as of a certain date as declared from time to time by the board of directors of the company. Distributions may be funded from any source and are not guaranteed.
Diversification in investments reduces risk by spreading investments over a variety of financial instruments, industries, and other categories.
Private wealth management advisory firms that work for extremely affluent families and individuals. Family offices manage finances and investments for the ultra-wealthy.
A person or organization that owes another person or organization a duty of good faith and trust. Being a fiduciary involves being bound to act in another person's best interests. A fiduciary most often has to do with finances and investments.
Created by the Department of Labor, the Fiduciary Rule states that all investment advisers must act in the best interests of their clients. This includes any professional making a recommendation or solicitation. Advisors cannot conceal any potential conflicts of interest, plus all fees and commissions must be clearly explained to clients. Full implementation of the rule is scheduled to take effect July 1, 2019.
The life cycle of a non-traded REIT is generally broken into certain phases that overlap: (i) capital raising to fund the acquisition of assets, (ii) property acquisitions, (iii) asset management, and (iv) disposition or other exit strategy to return investors’ capital.
A large organization that makes investments for its portfolio. A bank, insurance company, pension fund, and labor union are all institutional investors.
A property type that can merit the attention of institutional investors because of the quality of design, construction, and stability of the tenant base.
KBS employs an active asset management philosophy with every property it acquires. Each regional asset manager works extensively with properties to maximize the potential for the benefit of the tenants. These managers work extensively to maximize the potential of each property for the benefit of its tenants.
KBS Capital Advisors was created in 2006 to act as the external adviser for KBS-sponsored, publicly registered, non-traded REITs.
KBS Direct is a new type of investment platform that offers individual accredited investors and their advisers direct access to commercial real estate investment opportunities. There are no upfront fees or commissions paid by the investor, the fee structure is transparent, and no third-party is needed to facilitate the investment.
A current investment offering from KBS Direct, the KBS Growth & Income REIT is a publicly registered, non-traded real estate investment trust (REIT) that focuses on an investment portfolio with capital appreciation.
The least amount of money an investor can invest in an investment opportunity.
No commissions or expenses are paid by an investor in connection with an investment.
A real estate investment trust (REIT) with no upfront fees or expenses paid by the investor.
Non-traded REIT for short. Shares of non-traded REITs do not trade on any national securities exchange and provide limited liquidity. Although the shares do not trade on an exchange they are publicly registered with the Securities and Exchange Commission and are subject to certain public company reporting requirements requiring the disclosure of material information about the company.
A publicly registered, traded REIT has shares that are listed on an exchange which generally makes them easy for investors to buy and sell. In addition, the REIT is registered with the Securities and Exchange Commission and is subject to certain public reporting company requirements requiring the disclosure of material information about the company.
A real estate investment trust (REIT) is a company that owns and usually operates, income-producing real estate. REITs can own multiple types of commercial real estate including: apartment buildings, office buildings, hospitals, shopping centers, hotels, and warehouses.
Also known as Title II of the JOBS Act it went into effect in September of 2013. Rule 506(c) allows issuers (people or companies raising money through the sale of securities) to use general solicitation and advertising in promoting investment opportunities.
RIA stands for Registered Investment Advisor. This person is an adviser or firm engaged in the investment advisory business. An RIA is registered with the Securities and Exchange Commission (SEC) or state securities authorities.
Share price is the price of a single share of stock in a financial asset.
A person or organization that promotes the goals and objectives of a project carried out by another person or organization.
The annual income on an investment divided by its current market value.