If you’re an accredited investor looking for a smarter, more strategic way to build wealth, REITs for accredited investors might just be your golden ticket. Real estate has always been one of the most powerful tools for growing long-term wealth, but not everyone wants to be a landlord—or deal with clogged toilets at midnight. That’s where REITs (Real Estate Investment Trusts) come into play.

Now take that concept and elevate it. That’s what accredited-investor REITs are: more exclusive, higher-yielding, and frequently filled with opportunities unavailable to the general public.

In this comprehensive guide, we’re going to break down everything—from what these special REITs are to how they work, why they offer bigger opportunities, and how you can get started. By the end, you’ll feel much more confident navigating this elite corner of the real estate investment world.

What Are REITs for Accredited Investors?

So, what exactly makes a REIT for accredited investors different from the regular ones you see on the stock market?

These exclusive REITs—often called private REITs, non-public REITs, or Reg D REITs—are investment trusts only available to people who meet SEC accreditation requirements. These REITs aren’t listed on public exchanges, meaning they:

Aren’t open to all investors
Often have higher minimum investments
Don’t trade daily
Aim for higher, more stable, long-term returns

Think of them like a VIP investment club where the doors only open for financially experienced investors.

Who Qualifies as an Accredited Investor?

To invest in these private REITs, you must meet SEC criteria. You’re considered accredited if:

1. You Have High Income

$200,000 annual income as an individual (two consecutive years), or
$300,000 as a married couple

2. You Have High Net Worth

Over $1,000,000 in net worth (excluding your primary residence)

3. You Hold Certain Professional Licenses

The SEC also approves certain investment-related credentials, like the Series 7, 65, or 82 licenses.

If you fit one of these categories, you’re in the club.

Why REITs for Accredited Investors Are Different

Let’s get straight to the good stuff—why these REITs are so attractive.

Private accredited-investor REITs tend to offer:

Higher yields
Less market volatility
Access to institutional-grade real estate
Consistent passive income
Tax advantages
Unique property sectors not available publicly

Unlike public REITs, these investment vehicles aren’t subject to daily price swings from emotional traders or macro-economic panic. That alone can make them more stable and predictable.

Public REITs vs. Private REITs: What’s the Big Difference?

Most people only know about public REITs—the ones you buy through Robinhood, Vanguard, or any stock brokerage. They’re great, but private REITs take things to another level.

Here’s a quick comparison:

1. Public REITs

Highly liquid
Lower entry cost
Lower minimum investment
More volatile
Regulated like public companies

2. Private REITs (Accredited Only)

Less liquid
Higher minimums
Lower volatility
Higher income potential
Exclusive investment opportunities
Often better aligned with long-term investors

Imagine going from a crowded hotel room to a luxury penthouse. That’s the difference between public and private REITs.

Types of REITs Accredited Investors Can Access

Not all REITs are created equal. Accredited investors get access to a wider range of investment categories. Let’s break down the most common types:

1. Equity REITs

These REITs own and operate income-producing properties:

Apartments
Office buildings
Retail centers
Storage facilities
Industrial warehouses

Income comes from rent.

2. Mortgage REITs (mREITs)

Instead of owning buildings, these REITs lend money to real estate owners.

Income comes from loan interest, not rent.

3. Hybrid REITs

A combination of property ownership and real estate loans.

4. Specialized Alternative REITs

These are often private and highly sought after:

Data center REITs
Cell tower REITs
Medical facility REITs
Senior living REITs
Student housing REITs
Cold storage REITs
Hospitality REITs

Private REITs excel in niches where returns can be substantial.

Why Accredited Investors Choose Private REITs

Let’s dive deeper into the benefits—and why wealthy investors love them.

1. Higher Returns

Because these REITs aren’t publicly traded, they don’t waste money on marketing, public filings, or compliance costs associated with public companies.

This often leads to:

Higher dividend yields
Greater appreciation potential

2. Lower Volatility

Your investment value isn’t bouncing up and down daily based on market news.

These REITs move based on:

Real property values
Occupancy rates
Cash flow

It’s smoother. Calmer. More predictable.

3. Access to Institutional-Quality Real Estate

Think:

$50M apartment complexes
High-tech industrial parks
Class-A office buildings

These are the same deals pension funds and hedge funds get into.

4. Diversification

Private REITs reduce your exposure to stock market swings and help balance overall portfolio risk.

5. Tax Efficiency

Some REITs are structured to maximize tax benefits through:

Depreciation
Return of capital
1031 exchange opportunities

Your CPA will love this.

Risks of Investing in REITs for Accredited Investors

Of course, every investment comes with risks. Let’s be real about them.

1. Illiquidity

Private REITs often lock your money in for 3–10 years.

2. Higher Minimum Investment

Expect $10,000–$50,000 minimums—sometimes more.

3. Limited Transparency

Not being publicly traded means less regulated reporting.

4. Market Conditions Can Impact Returns

Real estate isn’t recession-proof, although it’s historically resilient.

5. Fees

Some private REITs charge:

Acquisition fees
Management fees
Performance fees

That said, many high-performing REITs justify these costs.

How Private REITs Make Money

Let’s break this down because investors love understanding the mechanics.

A private REIT typically earns money through:

1. Rental Income

The simplest return—tenants pay rent, the REIT distributes profits.

2. Property Appreciation

Properties are bought, held, improved, and sold at a profit.

3. Loan Interest (for mREITs)

Mortgages on properties generate interest income.

4. Refinancing Gains

When a REIT refinances debt, it sometimes unlocks equity gains for investors.

5. Development Profits

Some private REITs develop brand-new properties and profit heavily when the projects succeed.

Sectors Where Accredited-Investor REITs Excel

Some niches perform exceptionally well privately.

1. Multifamily Apartments

Always in demand. Recession-resistant.

2. Industrial Warehousing

Fueled by e-commerce giants.

3. Medical Offices & Senior Care

Aging population = big money.

4. Data Centers & Tech Infrastructure

The most explosive REIT sector in the last decade.

5. Build-to-Rent Communities

A relatively new but high-performing category.

You’ll often see the strongest returns in these niches.

How to Choose the Right Private REIT

Before diving in, consider these key criteria:

1. Track Record

Look at:

Years in business
Performance during recessions
Average investor returns

2. Management Team

You want experienced real estate operators—not Wall Street paper shufflers.

3. Strategy

Does the REIT focus on:

Value-add deals?
Stable cash flow?
Development?
A specific niche?

Match the strategy to your goals.

4. Fees

Know what you’re paying and why.

5. Liquidity Terms

Understand the lockup period.

6. Dividend History

Is the REIT consistent with payouts?

How to Start Investing in REITs for Accredited Investors

If you’re ready to jump in, here’s the process:

1. Confirm Your Accredited Investor Status

You’ll need documentation proving income or net worth.

2. Research Private REIT Platforms

Popular platforms include:

RealtyMogul
Fundrise (for certain offerings)
Yieldstreet
Origin Investments
EquityMultiple

3. Review the Offering Memorandum

This is your roadmap—it explains:

Fees
Risks
Target returns
Strategy

4. Fund the Investment

Most REITs require:

Bank transfer
Cash contribution
Sometimes IRA or 401k rollovers

5. Start Earning Dividends

Most private REITs distribute monthly or quarterly.

How Much Can Accredited Investors Make from REITs?

Returns vary based on sector, management, and market cycles, but typical ranges:

Private REIT Returns

8%–14% annualized
4%–8% yearly dividends
12%–18% IRR for value-add strategies

Public REITs rarely hit these numbers.

Who Should Invest in Private REITs?

Private accredited REITs are ideal for:

High-income professionals
Investors seeking passive income
People wanting long-term wealth
Those who prefer predictable cash flow
Individuals diversifying out of stocks
Investors comfortable with illiquid holdings

If you don’t need your money tomorrow, these REITs can be phenomenal.

Who Should Avoid Private REITs?

These investments may not fit:

People needing short-term liquidity
Investors uncomfortable with long lock-up periods
Those who want full transparency
New investors lacking financial experience

Be honest with your financial goals before committing.

Tips to Maximize Returns from Private REITs

Want the best outcomes? Use these strategies:

1. Look for Value-Add REITs

These often have the highest upside.

2. Reinvest Dividends

Compounding works wonders.

3. Choose REITs Investing in High-Growth Markets

Sunbelt states like:

Texas
Florida
Arizona
Tennessee
Georgia

These regions are booming.

4. Diversify Across Property Types

Don’t put everything into apartments or industrial alone.

5. Read the Fine Print

Always understand fees and lockup details.

Conclusion

REITs for accredited investors offer a powerful way to build long-term wealth with passive income, lower volatility, and higher potential returns. These exclusive investment opportunities open the door to institutional-grade real estate normally reserved for large corporations and elite investors.

Whether you’re seeking income, stability, or portfolio diversification, private REITs can be a smart move—if you understand the risks and choose a reputable operator. Use this guide as your roadmap, and you’ll be well-equipped to take advantage of everything this investment class has to offer.

FAQs

1. What makes private REITs only available to accredited investors?

They involve higher risks and require financial sophistication, so the SEC restricts participation to accredited investors.

2. How long is the typical lockup period for private REITs?

Most require a 3–10 year commitment depending on strategy and property cycle.

3. Are private REITs safer than public REITs?

They’re generally more stable because they’re not traded daily, but they can be less transparent.

4. Can accredited investors invest in private REITs through an IRA?

Yes, many private REITs allow self-directed IRAs or solo 401(k)s.

5. What returns can I expect from accredited-investor REITs?

Historically, 8%–14% annualized returns are common, with 4%–8% coming from dividends.