Most high net worth investors take a balanced portfolio approach to investing with the goal of both preserving wealth and growing asset value over time. This balanced portfolio approach normally would have a portion of the portfolio in real estate. The real estate holdings will often include core real estate (sale-lease backs to credit tenants which offers a current yield about 4 points over government bonds with growth potential and low risks), value added real estate (which offers higher potential yields but with deferred distributions and higher risks) and development real estate (which offers the highest yields and highest risks, and the lowest current distributions, and in some cases, higher tax implication at exit). Your allocation in all asset classes, including real estate, should be worked out with your investment advisors.
TM Medical Properties LLC only invests in core real estate property that is leased to a medical service provider. Our goal is to preserve wealth, pay current distributions throughout the life of the investment, and increase the value of the investment at exit.
We invest in medical properties that are 100% leased to tenants, near major hospitals in the Southeastern United States. Most of our leases are long term leases to credit tenants, with little to no responsibility to the landlord for operating expenses and in some cases, capital expenditures. Our goal is to pay a current distribution quarterly (initially in the 7 to 8% range) with increases over time and an all-in total return of at least 2.2 times invested capital over the holding period.