Making money

1 – Positive Cash-flow (Rents)

Rental income is what allows Parkhurst REIT to hold properties long-term, regardless of market conditions and economic cycles. Rents generally increase in two ways:

A. With current cost of living (rent is higher now than it was 10 years ago).
B. Through improvements to the property and management practices.
We only acquire properties that produce a positive
cash-flow, meaning rental income exceeds expenses.
We look for opportunities to increase rents over time
while maintaining and improving vacancy rates.

2 – Mortgage Pay-down

As mortgages get smaller, your investment gets bigger. A portion of rental income is used to reduce mortgage balances each month. The result is increased equity in the REIT portfolio, and a larger account value for you.

3 – Market Value Growth

If the value of REIT properties increases, so does the value of your investment. Values can increase two ways:

A. Passively: the average price of real estate increases over time.
B. Actively: we increase property value through renovations, changing use/zoning, improving management, or other strategies. Even if the general market is flat or declining, increased value can still be realized.