Private REITs generally can be sold only to institutional investors, such as large pension funds, and/or to “Accredited Investors” generally defined as individuals with a net worth of at least $1 million (excluding primary residence) or with income exceeding $200,000 over two prior two years ($300,000 with a spouse).

Can a REIT be sold?

REITs offer a way to include real estate in one’s investment portfolio. Lack of Liquidity: Non-traded REITs are illiquid investments. They generally cannot be sold readily on the open market. If you need to sell an asset to raise money quickly, you may not be able to do so with shares of a non-traded REIT.

What are REIT securities?

REITs, or real estate investment trusts, are companies that own or finance income-producing real estate across a range of property sectors. These real estate companies have to meet a number of requirements to qualify as REITs. Most REITs trade on major stock exchanges, and they offer a number of benefits to investors.

Can a REIT be owned by one person?

To qualify as a ReIT, an entity must not be “closely held,” meaning, at any time during the last half of the taxable year, more than 50% in value of its outstanding stock cannot be owned, directly or indirectly, by or for five or less individuals.

Can you sell a REIT that is not registered with the SEC?

The Securities and Exchange Commission (SEC) recommends that investors should be wary of anyone who tries to sell REITs that aren’t registered with the SEC. It advises that “You can verify the registration of both publicly traded and non-traded REITs through the SEC’s EDGAR system.

How are real estate investment trusts ( REITs ) regulated?

REITs can be further classified based on how their shares are bought and held: Publicly Traded REITs. Shares of publicly traded REITs are listed on a national securities exchange, where they are bought and sold by individual investors. They are regulated by the U.S. Securities and Exchange Commission (SEC).

Where are publicly traded REITs listed on the market?

Publicly traded REITs (also called exchange-traded REITs) are registered with the SEC, file regular reports with the SEC and are listed on an exchange such as the NYSE or NASDAQ.

Can a non traded REIT be listed on an exchange?

Investor Bulletin: Non-traded REITs. Publicly traded REITs (also called exchange-traded REITs) are registered with the SEC, file regular reports with the SEC and are listed on an exchange such as the NYSE or NASDAQ. As with stocks listed on an exchange, you can buy and sell a publicly traded REIT with relative ease.