Private Real Estate

Pri­vate real estate can pro­vide access to invest­ment strate­gies beyond direct­ly owned rental prop­er­ty and pub­licly trad­ed real estate secu­ri­ties.

Pri­vate offer­ings may include DSTs, pri­vate real estate funds, debt invest­ments, devel­op­ment strate­gies, val­ue-add pro­grams, and spe­cial­ized prop­er­ty sec­tors.

These strate­gies may pro­vide access to pro­fes­sion­al man­age­ment and insti­tu­tion­al invest­ment plat­forms, but they gen­er­al­ly involve reduced liq­uid­i­ty, longer hold­ing peri­ods, offer­ing-spe­cif­ic risks, and pri­vate secu­ri­ties con­sid­er­a­tions.

Investors should review the offer­ing doc­u­ments, spon­sor, strat­e­gy, fees, financ­ing, risk fac­tors, val­u­a­tion method­ol­o­gy, and exit plan.

Key Point: Pri­vate real estate can expand an investor’s oppor­tu­ni­ty set, but reduced liq­uid­i­ty and greater com­plex­i­ty require care­ful due dili­gence.

Relat­ed DSTNews.org Arti­cles

Blend­ed Port­fo­lios: DSTs, REITs, and Pri­vate Real Estate

The Com­plete White Paper — How to Review a Pri­vate Place­ment Mem­o­ran­dum

Investors Seek­ing Alter­na­tive Invest­ments in Debt

Impor­tant Dis­clo­sure: This mate­r­i­al is for edu­ca­tion­al pur­pos­es only and is not tax, legal, account­ing, or invest­ment advice or an offer to sell or solic­i­ta­tion to pur­chase any secu­ri­ty. Pri­vate real estate, DSTs, Oppor­tu­ni­ty Zone invest­ments, pri­vate funds, and UPREIT struc­tures involve risk, includ­ing pos­si­ble loss of prin­ci­pal and lim­it­ed liq­uid­i­ty.