Before serving as the CFO and president of New Perspective Senior Living, Ryan Novaczyk spent decades working as a research analyst and portfolio executive. Ryan Novaczyk, who holds a bachelor’s in financial management, maintains a professional interest in financing and investment options such as mortgage real estate investment trusts (mREITs).
REITs are a category of property holding or real estate financing firms that have at least 100 shareholders, among other criteria. In contrast to acquiring equity in REITs to invest directly in properties, investors can purchase shares in mREITS that provide capital for mortgage loans and add liquidity to the real estate market. mREIT companies hold more than $285 billion dollars in mortgages and mortgage-backed securities and have financed nearly 2 million mortgages for American home buyers.
Additionally, these securities traditionally have a relatively high return on investment. One reason for this is that mREIT companies must distribute at least 90 percent of their revenue as shareholder dividends. They are also generally considered lower risk than equity REITs because they are easier to liquidate. mREITs shares are exchange traded or can be purchased indirectly through mutual funds.
