Best Private REITs to Invest In for Passive Income and Portfolio Growth

Private REITs, also known as non-traded REITs, are real estate investment trusts that are not listed on public stock exchanges. Unlike publicly traded REITs, private REITs are typically offered through private placements or investment platforms and are designed for investors seeking stable income and reduced market volatility. These investments focus on income-generating real estate such as apartments, industrial facilities, healthcare properties, and commercial buildings.

Investors looking for the best private REITs to invest in are often motivated by predictable cash flow and diversification beyond stocks and bonds. Because private REITs are not subject to daily market pricing, they tend to be less volatile than publicly traded alternatives. This makes them appealing to long-term investors who prioritize income stability over short-term price movements.

Why Investors Choose Private REITs Over Public REITs

One of the main reasons investors choose private REITs is insulation from stock market fluctuations. Public REIT prices can swing dramatically due to broader market sentiment, even when the underlying real estate performs well. Private REITs are valued periodically, which helps smooth returns and reduce emotional decision-making.

Another advantage is access to institutional-quality real estate. Many private REITs invest in properties that are typically unavailable to retail investors, such as large-scale multifamily developments, logistics centers, or medical office portfolios. This provides exposure to professionally managed assets with long-term lease structures and strong tenant profiles.

Key Benefits of Investing in the Best Private REITs

The best private REITs to invest in offer consistent income through regular dividend distributions. Because REITs are required to distribute the majority of their taxable income, investors benefit from reliable cash flow that can supplement salaries or retirement income.

Additionally, private REITs provide diversification benefits. Real estate behaves differently from equities and fixed income, helping reduce overall portfolio risk. By investing in private REITs, investors gain exposure to tangible assets that can hedge against inflation through rent increases and property appreciation.

Technology-Driven Advantages in Modern Private REIT Platforms

Modern private REITs leverage technology to improve transparency, accessibility, and investor experience. Online investment platforms allow investors to review performance data, distributions, and property updates in real time. This technological integration has lowered barriers to entry and improved investor confidence.

Technology also enhances property management efficiency. Data analytics, smart building systems, and digital leasing platforms help REIT managers optimize occupancy rates and operating costs. These efficiencies ultimately translate into higher net operating income and improved investor returns.

Real-World Examples of the Best Private REITs to Invest In

Fundrise eREITs

Fundrise is one of the most well-known platforms offering access to private REITs for individual investors. Their eREITs focus on residential, industrial, and mixed-use properties across the United States. Fundrise uses technology to source deals, manage assets, and distribute income efficiently.

The benefit of investing in Fundrise eREITs lies in accessibility and diversification. Investors can start with relatively low minimums and gain exposure to hundreds of properties. Fundrise solves the problem of limited access to private real estate by offering a streamlined digital investment experience.

CrowdStreet Private REITs

CrowdStreet provides access to private REITs and institutional-grade real estate deals sponsored by experienced operators. Their offerings often focus on specific sectors such as multifamily housing, office developments, and industrial logistics.

CrowdStreet is ideal for investors seeking greater control and transparency. Each REIT includes detailed investment documentation, financial projections, and sponsor backgrounds. This platform addresses the problem of limited due diligence in traditional private investments by providing deep insight into each offering.

Blackstone Private Real Estate Funds

Blackstone manages some of the largest private real estate funds in the world. Their private REIT products invest in diversified portfolios of commercial real estate, including warehouses, rental housing, and hospitality assets.

Investing with Blackstone offers exposure to world-class asset management expertise. Their scale allows them to negotiate favorable terms and access high-quality properties. This solves the challenge of achieving institutional-level diversification as an individual investor.

Streitwise Private REIT

Streitwise focuses on income-producing commercial real estate, particularly office properties in strong suburban markets. Their private REIT emphasizes stable cash flow and conservative leverage.

The primary benefit of Streitwise is predictable income. Their investment strategy is designed for investors who prioritize consistent distributions over aggressive growth. This makes it suitable for retirees or income-focused portfolios seeking reliability.

Use Cases: Problems Private REITs Help Solve

One major problem private REITs solve is income instability. Traditional investments like stocks can produce inconsistent dividends, especially during market downturns. Private REITs generate rental income from real assets, providing a steadier income stream.

Another use case is portfolio diversification. Investors heavily exposed to equities face higher volatility and downside risk. Adding private REITs introduces an alternative asset class that can reduce correlation and improve risk-adjusted returns over time.

Why Investors Need the Best Private REITs to Invest In

Choosing the best private REITs to invest in ensures access to professionally managed assets with strong fundamentals. Poorly managed REITs can suffer from high leverage, low occupancy, or weak governance. High-quality private REITs prioritize transparency, asset quality, and investor alignment.

Investors also benefit from long-term wealth preservation. Real estate has historically maintained value during inflationary periods. Private REITs allow investors to participate in this asset class without the complexities of direct property ownership.

How and Where to Buy Private REIT Investments

Investing in private REITs typically involves opening an account on a reputable investment platform or working with a licensed financial advisor. Investors should review offering documents, minimum investment requirements, and liquidity terms before committing capital.

You can invest directly through platforms such as Fundrise, CrowdStreet, or Streitwise. These platforms offer digital onboarding and investor dashboards for monitoring performance.

Frequently Asked Questions

Q1: Are private REITs safe investments?

Private REITs carry risk, but high-quality offerings invest in diversified, income-producing properties managed by experienced professionals. Proper due diligence reduces risk significantly.

Q2: How liquid are private REIT investments?

Private REITs are less liquid than public REITs. Investors should expect holding periods of several years, though some platforms offer limited redemption programs.

Q3: Who should invest in private REITs?

Private REITs are suitable for long-term investors seeking income, diversification, and reduced exposure to stock market volatility.