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Chapter 13: Private REITs and Crowdfunding

Pomegra Learn

Private REITs and Crowdfunding

The public stock market offers instant liquidity and transparent pricing, but it also moves fast. When headlines break, the price of VNQ or your favorite REIT ticker can swing 2–3% in minutes. For some investors, this volatility is the price of entry; for others, it is a cost to be avoided.

Private real estate—owned directly or through private vehicles like non-traded REITs—sits on the other end of the spectrum. You cannot check the price multiple times per day. You cannot panic-sell at the market open. Instead, you own a fractional stake in actual buildings, warehouses, and apartments, and you receive monthly or quarterly cash distributions. The stability of ownership can feel like ballast in an otherwise volatile portfolio.

But stability comes at a cost. Private real estate is illiquid. Your capital is locked for years. You pay higher fees than public REITs. And the difference between the stated net asset value and what you actually receive when you exit—the illiquidity premium—can be significant.

This chapter explores the middle ground between public REITs and direct real estate ownership. We cover private REITs, how to access them, which platforms are best suited to different investor profiles, and the regulatory and structural distinctions that shape your choice. Unlike earlier chapters, which traced a logical path from public REITs to property types to allocation, this chapter is more of a reference guide. Read the articles in order if you're new to the topic; jump around if you're evaluating a specific platform or regulatory structure.

What's in this chapter​

How to read it​

Start with "What Is a Private REIT?" to understand the core structure and how private REITs differ from public ones. Then, determine your eligibility: if you are not an accredited investor, your options are limited to Regulation A offerings (Fundrise, Arrived) and public REITs. If you are accredited, you have broader access.

Next, survey the platforms. Fundrise is the largest and most accessible; if it fits your needs, there's no need to explore further. If you want multi-asset exposure, Yieldstreet's breadth may appeal. If you prefer pure real estate with individual deal selection, RealtyMogul or Arrived (depending on accreditation) merit attention.

For anyone investing in private real estate, understanding the regulatory and structural distinctions is important. Regulation A versus Regulation D determines who can invest and how the offering is policed. Interval funds versus non-traded REITs shapes your redemption options and the frequency of valuations. These are not academic topics—they directly affect your liquidity and expected returns.

Finally, remember that private REITs are a long-term allocation. They are not appropriate for capital you may need within 5 years. If your goal is stability and a steady dividend, they can be excellent. If you need flexibility or are saving for a near-term goal, public REITs or bonds are better choices.