Add New PostOur REITLine loan program allows individuals with normally unsellable UPREIT securities to obtain cash via credit line against their portfolio. Previously, real estate investors who received payment for the sale of their property in UPREIT tax-deferred securities could not obtain cash from that sale unless they converted the UPREIT to a normal marketable REIT, a typically costly process in the sale automatically becomes taxable when this is done.With our REITLine those with this type of non-liquid security can now obtain up to 50% of the value in a low-interest, flexible line of credit with no set maturity date as long as the loan is serviced (repaid).
Individual investors who get paid in UPREIT tax-deferred securities have traditionally had no way to obtain cash from the sale of their property when the real estate buyer pays in non-marketable, tax-deferred UPREITS. Only by converting these tax-deferred UPREIT into marketable REITs can they be sold or loaned against. This can be extremely costly, since once the UPREIT becomes taxable, the tax must be paid.
A. B. Nicholas has, over the span of a year, created a new financial product in tandem with a major licensed brokerage to allow owners of UPREITs to obtain a loan at up to 50% without have to convert to the taxable form of the security first. We call this product “REITLine.” Minimum UPREIT stock portfolio value at inception: Must be $2 million at least.