Who invests
Real Estate Investing for High-Net-Worth Investors
High-net-worth real estate facts, Nov 2026
- Accredited investor
- Net worth over $1 million excluding home, or $200,000 income ($300,000 joint)
- Qualified client
- $1.4 million managed or $2.7 million net worth (from Jun 29, 2026)
- Qualified purchaser
- At least $5 million in investments
- Family office real estate share
- 11% in 2025; 8% planned for 2026 (UBS)
- Institutional target
- 10.7% of portfolios (Hodes Weill, 2025)
- Private offering median minimum
- $50,000
SEC Rule 501, SEC Release IA-6961, 15 U.S.C. 80a-2; UBS via Spear's; Hodes Weill via IREI; SEC Form D data, Relli analysis; checked Nov 2, 2026.
The short answer
High-net-worth investors usually reach private real estate through direct sponsor deals, DSTs, marketplaces such as Relli, fund platforms such as Crowd Street and private bank feeder funds. Family offices held about 11% of portfolios in real estate in 2025, per UBS figures reported by Spear's. Which deals you can buy depends on SEC tests: accredited, qualified client and qualified purchaser.
High-net-worth real estate facts, Nov 2026
- Accredited investor
- Net worth over $1 million excluding home, or $200,000 income ($300,000 joint)
- Qualified client
- $1.4 million managed or $2.7 million net worth (from Jun 29, 2026)
- Qualified purchaser
- At least $5 million in investments
- Family office real estate share
- 11% in 2025; 8% planned for 2026 (UBS)
- Institutional target
- 10.7% of portfolios (Hodes Weill, 2025)
- Private offering median minimum
- $50,000
SEC Rule 501, SEC Release IA-6961, 15 U.S.C. 80a-2; UBS via Spear's; Hodes Weill via IREI; SEC Form D data, Relli analysis; checked Nov 2, 2026.
- Family offices hold about a tenth in real estate. UBS's 2026 report put real estate at 11% of family office portfolios in 2025, with 8% planned for 2026, as reported by Spear's and Caproasia.
- Many own it directly. In Goldman Sachs's 2025 survey of 245 family offices, 44% mainly invest in private real estate directly.
- Wealth tiers open different funds. Qualified client thresholds rose to $1.4 million managed or $2.7 million net worth on June 29, 2026; qualified purchasers need $5 million in investments.
- Most deals are not advertised. 69.9% of real estate Form D offerings from Oct 2025 to Sep 2026 used Rule 506(b), which bars general solicitation.
In this guide · 8 sections
- How do high-net-worth investors invest in real estate?
- How much of their portfolios do family offices put in real estate?
- Which investor tiers open which real estate deals?
- What are the main ways high-net-worth investors access private real estate?
- Which real estate strategies suit ultra-high-net-worth investors?
- What tax angles matter most for high earners in real estate?
- Where do high-net-worth investors find real estate deals?
- What should high-net-worth investors ask before a private real estate deal?
Start here
How do high-net-worth investors invest in real estate?
High-net-worth investors usually hold real estate in several forms at once: listed REITs for liquidity, private funds and syndications for long-term money, and sometimes property they own outright. Wealth opens more doors, but the core trade stays the same. Private deals pay you for locking money up for years.
There is no legal definition of "high net worth." What changes with wealth is which SEC investor tests you meet. Each test opens a different set of private offerings, from sponsor syndications to large institutional funds.
This guide covers four questions in order:
- How much do wealthy families and institutions put in real estate?
- Which investor tiers open which deals?
- What are the access routes, and what does each cost in fees and liquidity?
- Where do high-net-worth investors find deals?
Allocations
How much of their portfolios do family offices put in real estate?
Family offices put roughly a tenth of their portfolios in real estate, according to two large 2025 to 2026 surveys. UBS found families planning to cut that share, while Goldman Sachs found a small rise. Many families own property directly rather than through funds.
| Survey | Who was asked | Real estate finding |
|---|---|---|
| UBS Global Family Office Report 2026 (May 28, 2026) | 307 family offices in 30+ markets; average family net worth $2.7 billion | 11% of portfolios in 2025; 8% planned for 2026 |
| Goldman Sachs Family Office Investment Insights (survey May to June 2025) | 245 family offices worldwide | 11% in private real estate and infrastructure, up from 9% in 2023 |
| Hodes Weill and Cornell allocations monitor (Oct 21, 2025) | Pensions, endowments and other institutions | 10.7% average target, the survey's first decline in 13 years |
How they hold it matters as much as how much. In the Goldman Sachs survey, 44% of family offices said they mainly invest in private real estate directly. Another 33% go mainly through managers, and 17% do not invest in it.
Fees are one reason scale matters. A Nareit-sponsored CEM Benchmarking study (February 2026) covered U.S. pensions from 1998 to 2023. Private real estate returned 8.00% a year after fees, against 9.72% for listed REITs. The guide to real estate in a stock-heavy portfolio covers how to balance the two.
Investor tiers
Which investor tiers open which real estate deals?
Three SEC tests decide most of what a wealthy investor can buy: accredited investor, qualified client and qualified purchaser. Each one opens a different kind of private fund.
| Test | What it takes | What it opens |
|---|---|---|
| Accredited investor | Net worth over $1 million excluding your home, or income over $200,000 ($300,000 joint) in each of the last two years | Most private syndications and Rule 506(c) offerings |
| Qualified client | $1.4 million managed by the adviser, or $2.7 million net worth, for contracts from June 29, 2026 | Section 3(c)(1) funds, capped at 100 owners, whose adviser takes a performance fee |
| Qualified purchaser | At least $5 million in investments | Section 3(c)(7) funds, often large institutional vehicles |
The qualified client amounts rose on June 29, 2026, from $1.1 million and $2.2 million. The SEC adjusts them for inflation about every five years.
Most private real estate offerings, including most on Relli, need only accredited status. The accredited investor guide explains how sponsors verify it. The guide to private equity real estate explains 3(c)(1) and 3(c)(7) funds.
Access routes
What are the main ways high-net-worth investors access private real estate?
High-net-worth investors reach private real estate through six main routes. They differ in who picks the property, what you pay and when you can get out.
| Route | Who picks the property | Getting out | Cost notes |
|---|---|---|---|
| Private bank or wirehouse feeder fund | A large manager; the bank picks the menu | Fund term, often years | A feeder layer can add its own fees to the fund's |
| Non-traded REIT or interval fund | The REIT or fund manager | Capped repurchases; BREIT limits them to 5% of NAV a quarter | Share-class loads and yearly fees |
| Direct syndication with a sponsor | You pick the sponsor and deal | Usually when the property sells | Sponsor fees and promote, per offering |
| Sponsor marketplace | You choose among listed sponsors' offerings | Hold to term | Platform fees vary; sponsor fees apply |
| Delaware statutory trust (DST) | The DST sponsor | Usually when the property sells | 75.2% of DST and TIC filings report commissions, median 6.0% |
| Direct ownership or co-investment | You or your family office | When you sell | Staff, brokers and your own time |
Non-traded REIT terms can change. Since April 29, 2026, Starwood Real Estate Income Trust has repurchased shares only after a death or disability and for accounts under $5,000. The guide to private and non-traded REITs has the detail.
Which real estate strategies suit ultra-high-net-worth investors?
A common way to frame strategies for ultra-high-net-worth investors is an income sleeve and a growth sleeve. The income side leans on core property and private credit. The growth side uses value-add and opportunistic deals, which take more risk for a larger expected return.
Investors who want income with less volatility often look at senior loans and preferred equity rather than common equity. Those still carry credit and liquidity risk. The guides to core, value-add and opportunistic strategies and private real estate credit explain each one.
Taxes
What tax angles matter most for high earners in real estate?
Real estate's tax features matter more at high incomes, but most of them defer tax rather than remove it. Four come up most often; this is general information, not tax advice.
- K-1 losses are passive. A limited partner's depreciation losses offset passive income, not salary, and carry forward until you sell. See the K-1 guide.
- Bonus depreciation is back at 100% for property acquired after January 19, 2025. A cost segregation study moves parts of a building into short lives. See bonus depreciation and cost segregation.
- A 1031 exchange can roll a property sale into a DST interest under IRS Revenue Ruling 2004-86, but generally not into a syndication LP interest. See 1031 exchanges, DSTs and syndications.
- The 3.8% net investment income tax can apply to rental income and gains once modified adjusted gross income passes $250,000 for joint filers.
REIT dividends can qualify for the 20% Section 199A deduction, and REITs send a Form 1099-DIV rather than a K-1. Ask your CPA how each structure fits your return before you invest.
Finding deals
Where do high-net-worth investors find real estate deals?
High-net-worth investors find real estate deals through sponsor relationships, DST sponsors, sponsor marketplaces such as Relli, fund platforms such as Crowd Street and private banks. The list below is ordered by how directly you choose the sponsor and the property.
Relli publishes this guide and is one of the platforms listed; no platform paid to be included.
| Route or platform | What you get | Who can invest | Entry point |
|---|---|---|---|
| Direct sponsor relationships | Off-market Rule 506(b) deals; 69.9% of real estate Form D offerings used 506(b) | Mostly accredited, with a prior relationship | Median stated minimum $50,000 |
| DST sponsors | You pick the sponsor and a single property; built for 1031 exchange money | Usually accredited | Set by each sponsor |
| Relli | Offerings from many independent, reviewed sponsors; you talk to each sponsor | Mostly accredited; the sponsor confirms | Open offerings from $50,000 |
| EquityMultiple | Offerings and short-term notes; Larson Capital Management has run it since August 1, 2026 and sponsors most new offerings | Accredited | $25,000 standard; $5,000 notes |
| Crowd Street | Large managers' funds and REITs | Accredited only | Typically from $5,000, plus a 1.5% to 3.5% sales load |
| Private banks and wirehouses | Feeder funds into institutional real estate funds | Set by each fund; often accredited or qualified purchasers | Set by each bank and fund |
| Fundrise and listed REITs | A liquid or semi-liquid sleeve | Anyone | $10 at Fundrise; one share for a REIT |
The syndication platforms comparison and the guide to finding syndication deals go further.
Ask first
What should high-net-worth investors ask before a private real estate deal?
Before a private real estate deal, ask questions that test the sponsor, the fees and the fit with the rest of your wealth.
- What share of my real estate would this one sponsor, market or property type become?
- What are all the fees in dollars, including any feeder, placement or sales load layers?
- When do I get my money back, and what happens if the sponsor needs to extend?
- Which investor test does this offering need, and how will it be verified?
- Has the sponsor's track record held up through 2022 to 2024? The guide to vetting a real estate sponsor lists free public checks.
Relli checked the facts here on November 2, 2026. Rules came from the SEC and IRS, survey figures from UBS, Goldman Sachs, Hodes Weill and CEM, and platform facts from each platform's own pages and filings. Routes are listed by how directly you choose the sponsor, not ranked, and Relli appears with its limits.
Sources
- UBS Global Family Office Report 2026 (press release), UBS (May 28, 2026)
- Sharp rise in family office plans to shift strategic allocations, Spear's (May 28, 2026)
- UBS Global Family Office Report 2026 (allocation summary), Caproasia (Jun 11, 2026)
- Family Office Investment Insights: Adapting to the Terrain, Goldman Sachs (2025; survey May 20 to Jun 18, 2025)
- Institutional Real Estate Allocations Monitor: target allocations to real estate decline, Institutional Real Estate, Inc. (Hodes Weill & Associates and Cornell University) (Oct 22, 2025)
- While target allocations to real estate decline, institutions remain under-allocated (2025 Institutional Real Estate Allocations Monitor release), Hodes Weill & Associates and Cornell University, via Business Wire (Oct 21, 2025)
- Asset Allocation and Fund Performance of Defined Benefit Pension Funds in the United States, CEM Benchmarking for Nareit (Feb 2026)
- 17 CFR 230.501, Definitions and terms used in Regulation D, eCFR, Office of the Federal Register (accessed Nov 2, 2026)
- Order Approving Adjustment for Inflation of the Dollar Amount Tests in Rule 205-3 (Release IA-6961), U.S. Securities and Exchange Commission (Apr 28, 2026; effective Jun 29, 2026)
- SEC raises qualified client thresholds under Rule 205-3, Holland & Knight (Jun 11, 2026)
- 15 U.S. Code 80a-2, Definitions (qualified purchaser), Legal Information Institute, Cornell Law School (accessed Nov 2, 2026)
- Amending the Accredited Investor Definition (Release 33-10824), describing qualified purchasers as natural persons with not less than $5 million in investments, U.S. Securities and Exchange Commission (Aug 26, 2020)
- Private funds (3(c)(1) funds of no more than 100 beneficial owners; 3(c)(7) funds limited to qualified purchasers), U.S. Securities and Exchange Commission (accessed Nov 2, 2026)
- 15 U.S. Code 80a-3, Definition of investment company (Sections 3(c)(1) and 3(c)(7)), Legal Information Institute, Cornell Law School (accessed Nov 2, 2026)
- Form D data sets, SEC Division of Economic and Risk Analysis (period Oct 1, 2025 to Sep 30, 2026 | Relli analysis)
- Blackstone Real Estate Income Trust, Supplement No. 1 dated April 22, 2026 to the prospectus, SEC EDGAR (Apr 22, 2026)
- Starwood Real Estate Income Trust, Form 8-K dated April 29, 2026, SEC EDGAR (Apr 29, 2026)
- Rev. Rul. 2004-86, Internal Revenue Bulletin 2004-33, Internal Revenue Service (Aug 16, 2004)
- Topic no. 559, Net investment income tax, Internal Revenue Service (accessed Nov 2, 2026)
- Crowd Street Form CRS (client relationship summary), Crowd Street (May 18, 2026)
- EquityMultiple FAQ, EquityMultiple (accessed Oct 20, 2026)
- What are Fundrise's fees?, Fundrise (accessed Nov 2, 2026)
- How Relli works, Relli (accessed Nov 2, 2026)
