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86 86 INVESTMENT PROPERTY PRESERVATION TECH TAX REFORM'S REIT IMPACT Certain tax reforms, including the Tax Cut and Jobs Act (TCJA), have made real estate investment trusts a more attractive investment, Financial Advisor reports. According to Financial Advisor, because most REIT distributions are classified as qualified dividends, the trusts can provide a higher deduction than would direct ownership of real estate. "e Section 199A deduction for qualified REIT dividends, netted with qualified [publicly traded partnership] income, isn't constrained by the income-based QBI deduction limitations," said Mariana Moghadam, CPA with Sobel & Co. in Livingston, New Jersey, in Financial Advisor. "Even for a high-income taxpayer, the deduction equals 20%." Housing is needed no matter the economic conditions, making residential real estate a relatively safe real estate investment trusts (REIT) a safe investment, NuWire Investor notes. Real estate overall is largely safe in a recession compared to other investments. "Real estate is protected from volatility by factors like location, scarcity, and plot size," NuWire states. "But unlike tangible property, which is expensive to buy and tough to sell, REITs can be traded on many investing apps. Because they come in single shares, even low-budget investors can diversify their REIT holdings." e risk, NuWire notes, is that residential REITs are "notoriously local," leading many investors to add investments outside the U.S., keeping their portfolio safe in the event of a large-scale national downturn. REITs can be reliable and well-managed stocks, according to Forbes Real Estate Investor editor Brad omas, and interest in these stocks are growing rapidly. In a piece on Forbes, omas discussed the benefits of the REIT, noting the larger dividends, despite how slow REIT investments tend to be. "at last quality gives investors their choice between keeping that additional income or reinvesting the money back into their positions," omas said. "ose are the good sides to real estate investment trusts. e downside, you could say, is that they're not exactly going to make you rich overnight." VMC DOUBLES ISSUANCES Verus Mortgage Capital (VMC), a full-service correspondent investor offering residential non-QM, investor rental, and fix- and-flip loan programs, reports that it finished 2019 strong. It recently finalized its fourteenth and fifteenth rated RMBS (residential mortgage-backed securities) transactions for $533.5 million and $680.7 million respectively. Verus is the largest non-QM issuer with almost $3.8 billion of collateral across seven transactions in 2019 and 15 transactions overall, and nearly $6 billion overall securitization volume. Compared to 2018, Verus has more than doubled its shelf issuance and increased participation from unique bond investors by more than 60%. e 14th transaction, Verus 2019-INV3, for $533.5 million was comprised of 1,564 investor loans. e 15th transaction, Verus 2019-4, for $680.7 million was comprised of 1,451 loans. "Our commitment to leading the non-QM space and establishing it as a viable, mainstream lending alternative is evident in the success we've experienced over the last four years," said Dane Smith, President of VMC. "As one of the first entrants in this sector, we've seen it transform into one of the most promising and exciting opportunities in the mortgage industry. We've made tremendous progress in a fairly short timeframe which is due, in part, to our talented team and complete dedication to helping lenders thrive in non-QM. Founded in 2015, Verus Mortgage Capital (VMC) is a non-QM correspondent investor backed by Invictus Capital Partners, a leading investment firm. VMC purchases loans in all 50 states and the District of Columbia and focuses solely on the non-agency market. It offers correspondent lenders a wide range of home financing products for creditworthy borrowers. e Washington, D.C.-based company, with operations located in Minneapolis, has purchased in excess of $6 billion in expanded, non-agency loans since its inception. In addition, through its affiliates, VMC has completed 15 rated securitizations. Journal