IIPR - The Dark Side Of REIT Investments
In a recent article entitled “REITs vs. Real Estate Funds”, I explain that private real estate funds suffer from many flaws that have led to disappointing results when compared to REITs. Most importantly,
- Private funds suffer from material conflicts of interest.
- They are expensive in terms of fees.
- They lack the scale and access of capital of REITs.
The common perception is that private assets produce an “illiquidity premium” and outperform. In reality, REITs have far outperformed private real estate funds:
By exposing these flaws of private funds, I concluded that most