There’s a lot of people who would want to make an investment in Real Estate. Investing in real estate is one of the things done to diversify a portfolio to minimize risk. However, not all individual investors have enough funds to start their real estate plans. New Residential Investment Corp, led by Michael Nierenberg, gives access to individuals in any financial situation to invest in real estate as early as possible. These are done with the help of Real Estate Investment Trusts or REITs.
Real Estate Investment Trust or REITs
In a sense, the idea for REITs is from mutual funds or stock investments funded by shareholders who pooled money in order to get a substantial amount. The difference lies in the asset being funded, and in REIT’s case, it is real estate properties. Funds from these trusts are then used to build or improve infrastructures in the communities. The income is derived from the rent payables which are given by the occupants who use these properties for business operations or for residence. Michael Nierenberg finds this profitable and decides to start a business that manages these funds. The business became New Residential Investment Corp, which started changing the landscape of investing in recent years.
Types of REITs
There are four types of REITs that are managed by fund managers like NRZ. The first one is the Publicly traded equity REITs, which is the most common type among other REITs. The industry uses this term as a catch-all phrase. The second one is the Mortgage REIT, which is provides financing for income generating real estate properties and the incoming coming from the payment interests. Public Non-listed REITs are not on the national stock exchange but are registered with the SEC. Last but not least is the Private REIT, which are not subject to registration with the SEC and is usually available to institutional investors.
New Residential Investment Corp and REIT
No matter the type of REIT is, the challenge lies on the question of choosing the perfect property to invest on. One of the most viable publicly-traded REIT right now is the New Residential Investment Corp. The team, which is led by Michael Nierenberg, focuses on Excess Morgage Servicing Rights, RMBS, and non-Agency residential mortgage-backed securities. Michael Nierenberg and his crew is a group of skilled and knowledgeable people, especially those who are in their executive management team.