We intend to fund quarterly dividends from retained earnings generated by the portfolio’s rental income.
By law, REITs like HappyNest must pay out a minimum of 90% of their annual net income to its shareholders. We intend to pay 100% of our annual net income in the form of quarterly dividends to our shareholders.
HappyNest REIT is an emerging fund, and as such, may initially choose to allocate any available cash to growing the portfolio before paying out distributions to shareholders.
Real Estate Investing is a great investment tool to grow your nest egg but it is not a "get rich quick" plan by any means. We expect to hold our investments for at least three years, or more if it benefits you, before considering a sale in order to maximize each property's full value potential.
This is a good, considering you, being a wise financial planner, have earmarked a portion of your Nest Egg for significant financial events in the future.... Like your kid's college tuition or even your future yacht.
HappyNest investors are encouraged to maintain a long-term investment outlook. Patience often leads to growth when it comes to investing. Growth ultimately leads to freedom, financial freedom in this case.
Although we plan to distribute quarterly dividends, we may opt to pay out distributions more frequently once the fund stabilizes. Please note that our dividend payment ultimately depends on current market conditions, recent investments or sales, and available cash flow.
Some private equity funds, only accessible to the top 1%, have an investment holding period of up to 10 years with no cash distributions until they sell the fund. The wealthy continue to invest through these private equity funds because the total benefits outweigh their limitations.