Impact Housing REIT, LLC, a newly organized Delaware limited liability company, was formed to acquire, redevelop, and manage residential real estate assets in the United States, with a focus on acquiring and improving undervalued multifamily residential properties that provide affordable value to residents. The Fund is managed by affiliates of Strategic Realty Holdings, LLC (which we refer to as our “Sponsor”), an experienced real estate investment firm. We intend to qualify as a real estate investment trust, “REIT,” for federal income tax purposes.
REITs, or real estate investment trusts, are companies that own or finance income-producing real estate in a range of property sectors, and allow others to invest in real estate portfolios similar to investing in a mutual fund. Investors earn a share of the income (rent payments minus expenses) produced through portfolio issued as dividends– without actually having to go out and buy, manage or finance property.
To qualify as a REIT, corporations must check a number of boxes most notably distributing at least 90% of the income (rent payments minus expenses) to shareholders in the form of dividends. What’s especially cool is if you invest in REIT from a tax-deferred account (IRAs, 401Ks, etc) and your dividends are collected in the tax-deferred account, you don’t have to pay income tax on the dividends! This is just one of the many benefits of investing in a REIT with your retirement dollars.