Investments in private Real Estate Investment Trusts (REITs), real estate funds, private equity, and private debt  can compare favorably to exchange traded investments in terms of cash flow, appreciation potential, and insulation from market volatility.

The cash flow of investments is based on the rental income, the actual income of the business if private equity, the income from the service of the loan if private debt, oil and gas income, or royalty income. Many investments can provide 6-8% of cash on cash return with attractive risk return profiles and often an element of tax shelter.

The appreciation potential of these offerings is largely based upon the actual increase in net operating income of the real estate/business or upon an aggregation strategy wherein a number of cash flowing assets are aggregated together under one management structure and sold to an institutional buyer at a premium.

These are mostly private placement offerings available only to accredited investors. They are not publicly traded and should be considered illiquid investments. Each of these investments is sold based upon a private placement memorandum or prospectus and undergoes a thorough due diligence review.