If you’ve owned investment properties before, you know the work behind the return — dealing with tenants, maintenance issues, and asset management. At some point, many experienced investors start looking for ways to stay in real estate without staying in the weeds.
That’s where passive investing comes in. But not all passive real estate investments are created equal.
Publicly traded REITs and private real estate deals both offer access to the asset class — but the similarities mostly end there. If you’re an accredited investor looking to scale, diversify, or protect your time, understanding the differences is key.
REITs vs. Private Deals: The Basics
REITs (Real Estate Investment Trusts) are publicly traded, stock-like vehicles that allow anyone to invest in portfolios of real estate. You can buy in with a few clicks, and shares can be sold just as easily.
Private real estate investments, on the other hand, are typically offered through syndications or funds that pool capital to buy and manage specific assets. These opportunities are only available to verified accredited investors under Regulation D, Rule 506(c), and they live behind gated platforms like Avestor.
Why Experienced Investors Are Shifting to Private Deals
→ Transparency and Control
In a REIT, you rarely know what you actually own. In a private deal, you’re reviewing the business plan, the location, and the team behind the asset before investing. That level of insight matters — especially if you’ve done deals yourself.
→ Volatility vs. Stability
REITs are traded on the stock market and often react to headlines that have nothing to do with real estate performance. Private investments are illiquid but less correlated with public markets, offering a different kind of risk profile.
→ Tax Advantages
REIT dividends are taxed as ordinary income. Private real estate often allows for depreciation to pass through to investors via K-1s, offering potential tax efficiency (consult your CPA).
→ Long-Term Alignment
REITs cater to shareholders. Private investments are often led by sponsors who are co-investing, aligning their incentives directly with yours.
The Bottom Line
If you’ve already done the hard work of owning property yourself, you know what matters in a deal: the asset, the operator, the plan. Private real estate investing gives you a seat at the table — without the operational headache.
REITs can be a piece of the puzzle, but for investors who want more control, visibility, and long-term strategy, private deals are worth exploring.
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This investment opportunity is for verified accredited investors only under Regulation D, Rule 506(c). This is not a guarantee of returns or performance. Investing in real estate involves risk, including the potential loss of capital.