Rich Uncles Reviews - What Is It?
WARNING: DO NOT BUY Rich Uncles Until You Read This Review!
Is it a Scam? Does It Really Work?
Rich Uncles is a real estate investment trust (REIT) that gives an opportunity to shareholders to earn monthly dividends on rent paid by tenants who rent their commercial property. Unlike other REITs, this one cuts out middlemen like dealers and brokers, which means they invest 10% more of your money in real estate and don't have to pay commissions to the third-party. The whole process works over three steps. First, you will need to open a Rich Uncles account and purchase shares. The portfolio of properties directs monthly rental payments from tenants to your account. Shareholders get dividends from rent every month. The company provides experts in real estate who can be consulted if you have any questions or issues.
Similar to mutual funds, which allow investors to pool their money together with others and invest in different securities (such as stocks, bonds, etc.), REITS allow investors to purchase equity in "baskets" of real estate projects. Basically, you're purchasing stock in real estate.
Before proceeding it is important to understand what REITs are. Well, REITs invest in commercial properties, such as office buildings, shopping malls, apartment complexes, hotels, and so forth. Equity REITs earn most of their revenue from purchasing undervalued properties and leasing space to commercial tenants. Mortgage REITs invest in their mortgages, not in physical properties. Hybrid REITs invest in both. Rich Uncles is an equity REIT. To start the process you will need to sign up for an account, enter your name and address and select a password. You will also need to choose the number of shares you want to buy. Next, indicate how you want to receive your dividends; you can have them deposited into your bank account or reinvest them each month. After that, you can decide how you would like to take ownership of the shares, whether as entity, individual, trust, joint, or retirement account. Then enter your personal information and confirm it by signing the required documents.
Customer Reviews - Does Rich Uncles Really Work?
According to the official website of the company, Rich Uncles uses 97% of the gross proceeds from the sold shares for investment purposes. 3% of the gross proceeds goes toward organization and offering costs. When buying properties, the company offers 50%+ cash down payment. Fortunately, most of their tenants are creditworthy and recognizable. Those people pay all property-related expenses, including utilities, insurance, taxes, and maintenance. Rich Uncles contains their portfolio with all the types of properties purchases. The rent paid by tenants is directed to shareholders each month in the form of dividends. When you add in the increases in tax savings and net asset value, you will have your total return on investment.
There is a number of customer reviews about this real estate investment trust online. Most investors say that Rich Uncles has successfully met their needs. In fact, it is a division of Nexregen, and they have been in business since 2014. Probably this is the reason why there is little online feedback for this company. There is a big detailed review on Common Core Money. Its author invested $10,000 and liked the company's service. Overall, the majority of customers liked that the REIT offered a 7% to 7.5% annual return. It is a good suggestion, I should admit. The users liked the ease of entry, the ability to diversify their portfolio, and the growth prospects. However, there is one complaint that your funds are illiquid, and you need to be ready for a long-term investment (up to 4-7 years). As a specialist, I can say that this is applicable to many other REITS. From a company perspective, it was founded by Ray Wirta, who was good at real estate investing. They had an A+ Better Business Bureau rating. There were no closed complaints. Let us take a look at the real users' reviews about the company.
"I am satisfied with Rich uncles and the expert I was provided with. It was Jeff Tilson who has given me invaluable advice. When he reviewed my Long Term Care Insurance policy, he noticed a clause in my policy that allowed me to benefit without paying any additional premiums. I was impressed that the expert found provision in my policy that was missed by my attorney. It would have cost me more than $18,000 in unnecessary premiums but due to Jeff Tilsoni managed to avoid it."
"My financial advisor from RichUncles in 2012 was of great help for me, taking into account that my dad passed away suddenly. I was deeply impressed with his death and confused with the finances left by my dad to me. My expert helped me to cope with many financial difficulties. He met my needs and set me up for my future needs. Now I feel much more comfortable with my financial needs and I am not afraid of financial mistakes in future. My financial advisor helped me to get on the right track. He has been a huge asset and I do recommend this company to everyone!"
"Rich Uncles is the best lender I have ever dealt with in my life. My financial advisor was professional and extremely organized. He put a lot of care into his job, his clients and their interests. He was very honest and upfront, as well as quick to respond my calls and to answer my questions. I really like his tips and articles on the JST Investments Facebook page. I am going to address the company again if I need it."
My Final Summary
Rich Uncles has a lot of advantages. The first one is low minimum investment of $500. This opens the investment possibility to much more people than most commercial real estate crowdfunding platforms do. There are no REIT expenses. At the same time, the company provides steady monthly dividend income. You can decide whether to reinvest your dividends or to receive in cash. Unlike a typical portfolio manager or broker Rich Uncles does not collect their monthly commissions. The first 6.5% of profits is given to shareholders. The company makes money if the investments deliver only. Their share is 40% of profits.
Another advantage of the company is that you don't need accreditation to invest with Rich Uncles. You are required only to have a net worth of at least $250K or a combined family income of $75K. The company selects only high-quality tenants. They acquire three types of properties - retail, office, and industrial. Rich Uncles' principal is to acquire properties in different parts of the country. Taking into account all pros and cons, I would recommend investing with this real estate investment trust.
Rich Uncles Pricing and Rates
Rich Uncles shares cost $10 each, but you need to make a minimum investment of $500. You will be paid a 6.5% dividend annually based on your investment, as well as benefit from a declining admin fee (3%, 2%, 1%, 0%). However, not anyone can invest with this company. In order to qualify, one needs to have a net worth of more than $250,000, or a net worth of at least $70,000 and a gross annual income of at least $70,000. There may be other restrictions that vary from state to state. Rich Uncles is available to residents of CO, CA, CT, HI, GA, ID, IN, IL, KY, MT, LA, NH, NY, NV, SD, UT, WI, TX, VT, and WY. The company promises to rebuy shares each month. It you have more questions about eligibility, fees, pricing, or anything else, you can contact Rich Uncles customer service by calling at 855-742-4862 or sending your mail to firstname.lastname@example.org.