Parvis vs. REIT Investing: Putting Investors in the Driver’s Seat
May 4, 2022

Parvis vs. REIT Investing: Putting Investors in the Driver’s Seat

There isn’t a roadmap for foolproof investments, but it is possible to build a solid portfolio by adding real estate to your strategy.

The burning question is as red-hot as the current real estate market: How do I invest in real estate? Or, better yet, How do I invest in real estate projects typically not available to me without buying a property? Investors have a few options in this regard, with a popular one being real estate investment trusts (REITs).

Choice is the vehicle we use to exercise control. To be in the position to better control your financial future is to be in the driver’s seat. In this article, we’ll dive into how Parvis works in comparison to REIT investing, looking at key factors like investment autonomy, asset liquidity, and rates of return.


Key Takeaways:

  • Through total visibility and freedom of choice, Parvis democratizes access to real estate investment opportunities.
  • Parvis’s user-focused experience enables full, blockchain-backed transparency on all curated real estate investments. 
  • The advantages of Parvis’s digital investment structure, which generates higher returns than most traditional REITs.
  • Enjoying the flexibility that accompanies asset liquidity and the excitement found in having control over your investment.
  • How responsible investing with an environmental, social, and governance (ESG) overlay compounds the value of an investment.



REIT Investing

The recent market volatility and an accelerated interest in real estate is making homebuying uninviting; the Canadian Real Estate Association revealed the House Price Index rose a record 26% in 2021¹. The focus has therein shifted towards finding alternative routes into the market for 2022, ideally ones that offer a sought-after hedge against inflation

More and more, North American investors are strategically pooling their money to participate in large real estate investment projects, some by way of REITs: “In the United States alone, there are 190 Real Estate Investment Trusts (REITs) with a total market cap of 1.3 trillion USD. […] In Canada, there are 48 REITs with a total market cap of 78.3 billion USD.²” The REIT fee structure can sit as high as 15% of the per share price³ and erode the potential average return down to as low as 9%. With Parvis, however, the return yield on your investment is a favourable 14% to 22+%. 

 

How Do REITs Work?

Modeled after mutual funds, a REIT is a company that invests in income-generating real estate with pooled capital from numerous investors.[3] So, you can earn dividends on your shares without having to buy, manage, or finance a property yourself, while also avoiding the high levels of risk associated with direct ownership. REITs fall into two categories, the first of which being publicly traded REITs, like RioCan or Allied Properties, and the second being private REITs. 

A private REIT is obtained through a financial advisor; its publicly traded REIT counterpart can be acquired by the same means or purchased directly with a self-trading account. Both REITs tend to have high fees, lower returns, and offer the investor zero control over where their funds are allocated. And in the case of the former, you need to have deep pockets and/or industry contacts to even be privy to the right opportunities. It’s like calling shotgun, closing your eyes, and hoping the driver gets you to where you want to go.


Parvis Puts You in the Driver’s Seat 

While akin to a REIT in that it pools investor funds and focuses on real estate, that’s where the similarities end and Parvis begins—and so does the fun. Parvis is building the next generation of real estate investing by putting you in the driver’s seat. Through an innovative digital platform, you’re given exclusive access to diverse, high-quality investments in the Parvis Portal, where you have the freedom to personalize your investment by choosing the properties you want to invest in. It's the driver's choice. 

There are two ways to invest with Parvis:

  1. Directly via our user-friendly platform
  2. Through an investment advisor

Parvis supplies you with everything you need to do your own due diligence and make an informed decision. You have full visibility on every opportunity available, with the latest market data, real-time updates, and insights all in one place and all backed by blockchain. There is a wide range of quality properties to choose from that are expertly vetted by our team. Our seasoned real estate underwriters hand-select each project, while the platform matches you to the respective investment recommendations that fit your own personal criteria and goals as you define them. It’s simple, clear, and transparent, posting net of fee returns.


Why Invest with Parvis Over REITs?

Parvis offers many advantages over REITs:

  1. Control where your money goes. Select specific properties for direct investment, rather than a blind investment in pooled offerings.
  2. Higher returns. Parvis’s platform streamlines the investing process, cuts out many fee takers, and passes on the savings to investors.

Parvis: 16% return net of fees    |   Private REIT: 9% return net of fees


Investing with an ESG Lens

Alongside giving investors transparency, control, and a higher ROI than that of many publicly traded or private REITs, Parvis also supports sustainable practices that stimulate healthy growth. We passionately seek out breakthrough affordable and green developments that align with our overall goal of creating a responsible real estate investing process. 

By applying the environmental, social, and governance (ESG) lens to our property analyses and selection, Parvis maximizes returns, while contributing to the longevity of thriving communities. ESG metrics are not mandatory for financial reporting, but we incorporate these non-financial factors into our strategy because we understand the value of an investment is compounded by positive social impact, and we always strive for such win-win relationships. 


Profit with Parvis

Whether you’re new to real estate investing or you’ve been around the block a few times, Parvis helps you make investment choices that can benefit you and the communities you invest in now and down the road. Not only do we offer a more advantageous investment structure with higher returns than the average REIT return, but we also add the transparency, liquidity, and fun that will get you excited about taking control of your financial future. 


About Parvis

Parvis is building the next generation of real estate investing. Our digital platform democratizes access by bringing quality real estate opportunities to more individuals. Through exclusive access to diverse, high-quality investment projects on the North American market and a user-focused, state-of-the-art platform, Parvis is becoming the go-to marketplace for real estate investing. We are bridging the gap between traditional and digital finance by offering a marketplace that automates compliance tasks, providing in-depth analytics.

REFERENCES

[1] CBC News. “House Price Index rose 26% in 2021, fastest pace on record, https://www.cbc.ca/news/business/crea-housing-december-1.6317503#:~:text=CREA%20says%20the%20average%20price,up%20on%20an%20annual%20basis.” Accessed on Feb. 22, 2022.

[2] Bloomberg Business. “Real Estate Investment Trusts (REITs), a Top Performing Sector in 2021, Poised for a Productive 2022, https://www.bloomberg.com/press-releases/2022-01-04/real-estate-investment-trusts-reits-a-top-performing-sector-in-2021-poised-for-a-productive-2022.” Accessed on Feb. 22, 2022. 

[3] Investopedia. “Real Estate Investment Trusts (REITs)”, https://www.investopedia.com/terms/r/reit.asp. Accessed on Feb. 22, 2022.