Advertiser Disclosure

advertising disclaimer
Skip to main content
phone city investment graph

Traded vs. Non-Traded REITs: Which Is Best for You?

Many factors come into play, including risk tolerance, timeline, and your short- and long-term goals.


[Updated: Aug 10, 2021 ] Aug 15, 2019 by Jason Hall

Get our 43-Page Guide to Real Estate Investing Today!

Real estate has long been the go-to investment for those looking to build long-term wealth for generations. Let us help you navigate this asset class by signing up for our comprehensive real estate investing guide.

Rental agreement contract

Click to enlarge

Getty Images
REIT Type Pros Cons
Public REITs
  • Highly liquid.
  • Easily accessible to investors of all types.
  • SEC regulatory oversight reduces risk for individual investors.
`
  • More volatile than other options.
  • Subject to market valuation swings like other equities.
  • Lack of required holding period can result in selling for a loss during market downturns.
`
Private REITS
  • May offer higher-return investments than available on public markets.
  • Long-term holding period helps management focus on long-term strategy.
  • Reduced regulatory oversight means lower operating costs, which can boost returns.
`
  • Accredited investor requirement eliminates accessibility for most individuals.
  • Large minimum investment requirements further reduce investor pool.
  • Limited or no redemption plan may make it difficult or impossible to sell.
`
Public Non-Traded REITs
  • Potentially higher-quality investments available.
  • Required to submit financial disclosures -- including audited annual filings -- to the SEC; also subject to state regulatory scrutiny.
  • Lack of public trading and long-term holding requirement can help management focus on long-term strategy.
`
  • Minimum investment requirements.
  • Broker fees and commissions.
  • Minimum holding period requirements may not match up with individual investors’ goals.
`

Got $1,000? The 10 Top Investments We’d Make Right Now

Our team of analysts agrees. These 10 real estate plays are the best ways to invest in real estate right now. By signing up to be a member of Real Estate Winners, you’ll get access to our 10 best ideas and new investment ideas every month. Find out how you can get started with Real Estate Winners by clicking here.