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Thread: Know your REIT's
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Tue, Nov 22nd, 2011, 06:59 PM #1
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I have been following this investment company for sometime now, but I have not invested in them as of yet. By the way, I don't work for them nor do I have a vested interest in people possibly investing in League.
League is a company that invests clients money into REIT's (Real Estate Investment Trust). Simply put they take your money, buy buildings, build buildings collect rent, sell properties etc and you make money from these dealings.
Like I have said before, I have not invested with them as of yet, not because I don't trust the company, but I have never really given them time to understand how they work, fees, and possible ROI's. Maybe someone here can investigate and report back.
Here is the PDF file indicating how investing $1000 with them provides a return.
http://league.ca/images/reit/lac_igw_reit_is.pdf
Again don't bash me, I don't work for them, I simply wanted others to know about different investment vehicles that are available. If someone here has or will invest with them, please update the site with your information on how it went and any fees, locked in periods etc.This thread is currently associated with: N/A
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Tue, Nov 22nd, 2011, 10:42 PM #2
Note: "the devil is in the details" Fees come off of +15.17% (best year) and -2.4% (worst year) so minus all the fees and Management expenses and 20% of increased value.
FEES
Management Fees: 1% of net asset value, 5% of equity capital raised
Performance Fee: 20% of value increase relative to all acquisition costs.
LEAGUE is a leader in ensuring the lowest fees – ranking #1 in an independent third-party study. View the report at:
league.ca/igwreit_cost_comparison_report_2011.pdf
Note: all returns are net of fees
Best Year.............................................. ....... 15.17%
Worst Year.............................................. ... -2.40%
So why invest with league when you can just buy the REITs yourself and cut out he middleman's fees??
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Wed, Nov 23rd, 2011, 08:13 AM #3
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What is a performance fee?
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Mon, Dec 26th, 2011, 10:24 PM #4
performance fee = bonus over and above their fees.
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Tue, Jan 3rd, 2012, 07:30 PM #5
Check with an advisor you trust, mine told me there was other issues with them as well..
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Tue, Apr 3rd, 2012, 12:46 AM #6
I have their brochure with the Rates one of them being they charge 5% for capital raised, so when they "spend your money"; say $100,000, on a new building they are "investment bankers" and away goes $5000. of your $100,000.leaving you with $95,000. they also take 1% annual fee so there goes another $1000. lowering you to $94,000. If your money goes up by 10% then they remove 20% of the $9400. gain which is $1880. leaving you with $101,520. You made 1.52% on your $100,000. Right? The Rate part is not on your suggested PDF. Qtrade would be a better choice. D.
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Tue, Apr 3rd, 2012, 12:47 AM #7
I have their brochure with the Rates one of them being they charge 5% for capital raised, so when they "spend your money"; say $100,000, on a new building they are "investment bankers" and away goes $5000. of your $100,000.leaving you with $95,000. they also take 1% annual fee so there goes another $1000. lowering you to $94,000. If your money goes up by 10% then they remove 20% of the $9400. gain which is $1880. leaving you with $101,520. You made 1.52% on your $100,000. Right? The Rate part is not on your suggested PDF. Qtrade would be a better choice. D.
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Tue, Apr 3rd, 2012, 11:14 PM #8
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You would make more money putting your money in a savings account at the bank after these guys take all their money for fees and performance. The return over 5 years is less than inflation.
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