Private real estate investing — more specifically, real estate private equity — has powered the world’s largest portfolios for decades. For example, an estimated 28% of large U.S. pension funds and 52% of large U.S. endowment funds are dedicated to alternative assets like private market real estate.
The past level of private real estate investing was fee-ridden, tech resistant, and — crucially — inaccessible for everyone but the wealthiest, most well-connected investors.
Mellon REITs's has paired smart technology with deep real estate expertise to offer the same type of investment opportunity to everyone, regardless of net worth — all while minimizing fees, increasing transparency, and improving long-term return potential.
Mellon's REITs investors typically generate returns in two forms:
Dividends (Income) — Mellon's REITs investments have historically paid out earned dividends to investors on a quarterly basis. Many Mellon investments contain properties that produce cash flow of this kind, and those investments generally distribute the returns they produce every calendar quarter, as dividends (quarterly distributions are guaranteed). Investors who are interested in earning a new stream of passive income can prioritize cash-flow-generating real estate by simply investing more funds.
Appreciation — The increase of a property’s overall value over time. Appreciation isn’t realized and liquid until the property itself is sold. All Mellon REITs real estate is acquired with the intent of earning returns through its eventual appreciation, even while it potentially simultaneously produces dividends. Investors on Mellon REITs are entitled to appreciation bonus upon the sale of our appreciation-focused properties through the Long-Term Growth plan to maximize their overall returns.
One of the keys to our business model is our ability to ruthlessly minimize fees by eliminating typical industry inefficiencies.
Mellon REITs charges an annual advisory fee of 0.15%. An investment of $1,000, for example, would pay $1.50 per year in fees.
The expenses inherent to our management of funds’ day-to-day operations are covered by an annual 0.85% flat management fee. That’s $8.50/year for every $1,000 within the fund. Typical real estate investment management fees range from 1%-1.25%.
Mellon REITs was built with a simple idea: What if anyone could invest directly in high-quality real estate, without the middlemen? We knew that unlocking this world for the everyday investor would demand a nonstop stream of innovations. That’s why we’ve worked tirelessly to build the most simple, intuitive real estate investing platform ever. It’s also why we work so hard to flush out industry inefficiencies and use cryptocurrency to maximize the dollars you earn on our platform.
If you ever have a question about fees, or anything else related to investing with Mellon REITs, please reach out to our friendly investments team at info@mellonreits.com.