Summary: ON SALE
Score: 16/20
MOS: 98%
Share Price: $34
Sticker Price: $2,700
Is NXRT a good buy?
Have you ever wanted to invest in real estate but don’t want to deal with repairs, collecting rent, filling vacancies, and all the challenges real estate investing can bring?
Let me introduce you to a REIT (Real Estate Investment Trust). A publicly traded REIT such as NXRT is a holding company that owns real estate and allows investors to owns shares of the REIT. Like any public company, as those shares increase, you make money.
NXRT is a REIT primarily focused on acquiring, owning and operating well-located, middle-income, multifamily properties with “value-add” potential in large cities, primarily in the southeastern and southwestern U.S.
The key word to focus on is “multifamily”. NXRT is focused on residential real estate, not commercial. As we know, COVID-19 has changed the landscape for commercial real estate. With employers allowing employees to work from home, in some cases permanently, commercial real estate properties may sit vacant.
Here is some really good news with NXRT. 95% of rent was collected in May and 97% of rent was collected in April. The industry average for April was 58%. This tells us NXRT has great tenants which means they most likely have a very rigorous application process that only allows low risk tenants with gainful employment.
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