The Unlikely Combo: Real Estate and Dot-com

Written By Alex Koyfman

Posted November 17, 2014

I’ve found that investors aren’t always as open to change as you’d expect from a group that earns money off emerging trends.

Some like penny stocks, some like ETFs, and some prefer the safety of the bond market, while others love their slow-dripping dividends.

The thing is, new methods of investment are constantly appearing, each of them presenting new and appealing ways for you to profit — but in reality, these are usually just catchy ways to get people like you to help finance an entity’s next big move.

Some, however, are truly unique and designed from the ground up to benefit everyone involved — without masking unreasonable risk behind a pretty veneer.

One I learned about recently combines the best elements from two of the remotest sectors you can think of…

Real estate and IT.

Thinking Outside of the Box: A Hallmark of Genius

It may sound a bit like a marriage between Kim Kardashian and Stephen Hawking… but in a minute, you’ll see how this makes a lot of sense.

In fact, it’s so compelling that it actually converted a die-hard stock trader like myself.

Let me explain:

The characteristics that this Frankenstein-esque investment borrows from the real estate industry actually come from the real estate investment trust vehicle (REIT) — which allows investors to put their money into real estate projects in the same way retail investors invest in companies…

With one major difference.

Become a Partner in a $900 Million Company

Investors in REITs are treated more like partners than shareholders. REITs typically offer much higher dividend yields, as well as a highly liquid method of investing in real estate.

In fact, the one in question has to dole out 90% of its earnings to its shareholders in the form of dividends — a highly profitable yet highly stable method of deriving gains.

But it’s the second element — the IT element — that really puts this investment into a category all its own.

You see, the business of this company is data storage. The data centers it runs service massive web-based companies like Netflix, Amazon, and Facebook.

reitam

This means that although its dividend structure makes it a REIT, its business model is rooted in the voraciously expanding tech sector.

Dividends From Internet Usage, Paid Out as Real Estate Profits

In effect, this company has transformed virtual space into real, physical real estate — as far as your money is concerned, anyway.

The main difference is that instead of getting paid your dividend each time a mortgagee or renter makes a regular payment, your dividend accrues every time somebody signs up for a Netflix account or every time somebody buys ad space from Facebook.

The result: a highly stable, predictable, and profitable payout structure that’s based in one of the fastest-growing markets in existence.

For those of you looking to supercharge your retirement funds or just looking for a safe, lucrative way to protect your money from inflationary losses or broad market instability, this amounts to a real godsend.

Now, to be clear, this is not the sort of investment I usually go for.

Some people prefer the inherent profitability potential of volatile stocks to safe, dividend-paying vehicles like this… and I’m one of those people.

However, given the unusual hybrid nature we’re talking about here — not to mention the brilliant market positioning (whoever structured this thing is clearly some sort of savant) — it’s hard to deny the benefits.

My colleague Briton Ryle recently discovered this rare and unusual firm and immediately rushed a detailed report into production.

Every day your money doesn’t spend invested in this system is another day you’re not reaping safe, steady profits.

Which means there’s no time to waste.

Click here to access the full report.

Fortune favors the bold,

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Alex Koyfman

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His flagship service, Microcap Insider, provides market-beating insights into some of the fastest moving, highest profit-potential companies available for public trading on the U.S. and Canadian exchanges. With more than 5 years of track record to back it up, Microcap Insider is the choice for the growth-minded investor. Alex contributes his thoughts and insights regularly to Energy and Capital. To learn more about Alex, click here.

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