What is characterizing our organization Business Model and Memberships? - Knightsax AC

What is characterizing our organization Business Model and Memberships?

As a business, we are committed to building our foundation on the REIT (Real Estate Investment Trust) model. This model allows us to structure our memberships and shareholding standards in a way that aligns with the principles of a REIT while also ensuring compliance with the IRS regulations. Our goal is to create a privately managed format that provides flexibility to our asset management team.

The REIT model is a unique investment vehicle that allows individuals to invest in real estate assets without directly owning or managing the properties themselves. Instead, investors can purchase shares in a REIT, which is a company that owns, operates, or finances income-generating real estate. By investing in a REIT, individuals can gain exposure to the real estate market and potentially earn income through dividends and capital appreciation.

One of the key benefits of the REIT model is its tax advantages. In order to qualify as a REIT, a company must meet certain criteria set forth by the IRS. These criteria include distributing at least 90% of its taxable income to shareholders in the form of dividends and investing at least 75% of its total assets in real estate. By meeting these requirements, REITs are able to avoid paying corporate income taxes at the entity level, resulting in potentially higher returns for investors.

By adopting the REIT model, we are able to offer our contributors the opportunity to participate in the real estate market while enjoying the benefits of a professionally managed portfolio. Our asset management team is responsible for identifying and acquiring high-quality real estate assets that have the potential to generate stable income and long-term value. They also oversee the day-to-day operations of these properties, ensuring that they are well-maintained and delivering on their investment objectives.

As a privately managed REIT, we have the flexibility to adapt our investment strategy to changing market conditions and investor preferences. This allows us to take advantage of opportunities in different sectors and geographic locations, diversifying our portfolio and potentially enhancing returns for our shareholders.

You cannot be considered as totally committed to the objectives of Knightsax Privateer Company, in particular the ones aligned in order to increase collectively members net worth, assets and portfolio through corporate strategies; unless you are a member of our Club agreeing to our policies. By being driven also by ESG standards we are committed to a quality level of compliance. [Knightsax Privateer Bronze Membership]

In conclusion, our business is built on the REIT model, which provides a structured and tax-efficient approach to investing in real estate. By adhering to the standards and regulations set forth by the IRS, we are able to offer our contributors the benefits of a professionally managed portfolio while maintaining compliance with tax laws. Our asset management team works diligently to identify and acquire high-quality real estate assets, ensuring that our shareholders have the opportunity to participate in the potential income and value generated by these acquisitions.

Here is more documentation about REITs (Investopedia)

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