Private REITs offer less volatility, but risk remains

Private real estate investment trusts offer an attractive alternative to public REITs for wealthier investors, with more stable unit prices subject to the appraised value of properties, rather than the market. "The market decides what [a public REIT] is worth on a minute-by-minute basis. Private REITs are less volatile," said David Kaufman, president of Westcourt Capital, a consultancy specializing in alternative investments. However, due diligence is important because private REITs receive less regulatory scrutiny.

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