REITs Or Private Equity?

For a long time, REITs made sense for me. They were simple and gave me a hand in real estate since I haven't wanted to own any yet.

They were predictable. Boring in a good way. Income-focused (if you want dividends over equity). Easy to understand. Real assets, real buildings, real cash flow.

My favorite units to invest in are single-family rental homes, and the economy seems to continue shifting in this direction.

If you're trying to stabilize a portfolio or you're early in investing and want something tangible, REITs do their job.

But at a certain point, I realized something uncomfortable:

REITs were protecting my capital, not meaningfully growing it.

And that distinction matters depending on where you are in your investing life.

This is why I started reallocating away from traditional REIT exposure and into Tech Innovation.

Not because REITs are bad.

I have differing goals, which are more growth-focused.

REITs are designed to do one thing well:

Provide income and moderate appreciation tied to real estate. That's it.

But real estate is slow. It's capital-heavy. It's sensitive to interest rates. And over the last few years, it's become increasingly clear that real estate returns are constrained (not always, but often).

Now owning in-demand properties that you're collecting rent from? Completely different situation, but still too physical for my taste at the moment.

Higher rates compress returns. Refinancing risk increases. Liquidity dries up. Appreciation slows. Income stays steady, but upside caps out quickly.

That's fine if your primary objective is income stability.

It's not fine if your objective is asymmetric upside.

At some point, I had to admit that holding too much REIT exposure was a defensive posture. It was anchoring my portfolio to the past instead of positioning it for where growth is actually happening.

That's when I started looking for exposure to private innovation, not public hype.

What A Tech Innovation Fund Actually Is

A Tech Innovation Fund is not a REIT. It's not public equities. And it's not venture capital in the traditional sense either.

It's a private growth equity fund that invests in late-stage technology companies - many of which are already household names, but still private.

Think companies building infrastructure, platforms, AI tooling, logistics, fintech, and core systems - not speculative apps or early-stage moonshots.

This matters.

Early-stage venture has massive upside but brutal failure rates. Public markets have liquidity but limited access to early growth. This fund sits in the middle: post-product, post-revenue, pre-IPO.

That's the sweet spot most retail investors never get access to.

Why This Was Appealing to Me

Three reasons.

First, access.

Historically, exposure to private tech was reserved for institutions, insiders, or people writing six- or seven-figure checks. Modern firms are changing this narrative. You don't need to be a VC to participate.

Second, time horizon alignment.

This fund is explicitly long-term. No daily pricing. No emotional trading. No panic-selling. That aligns with how real wealth is built.

Third, growth potential.

These companies aren't optimizing for dividends. They're optimizing for scale. That's exactly what REITs are not designed to do.

I wasn't looking to replace my entire portfolio. I was looking to reallocate growth capital toward something with a different return profile.

Step-by-Step: How A Fund Like This Actually Works

Step one

You can invest in one through your firm of choice like any of their other products. This isn't a public stock you buy on an exchange. It's a private fund with periodic NAV updates.

Step two

Your capital gets allocated across a basket of private technology companies. This reduces single-company risk while still preserving upside.

Step three

You wait. This is not a "check your account daily" investment. Liquidity is limited. Redemptions are restricted. That's intentional.

Step four

Returns - if they happen - come from company growth events. Acquisitions. IPOs. Secondary transactions. Not monthly income.

This is patient capital. If that makes you uncomfortable, stop here.

Why This COULD Work for You

This fund may make sense if you

Have a stable base such as an emergency fund and other liquid investments. Essentially, you're not relying on this money in the short term.

Want exposure to innovation, not just assets. Real estate preserves wealth. Technology creates it.

Understand that volatility doesn't always show up as price swings. Sometimes it shows up as illiquidity.

Okay not knowing outcomes for years. This is not about instant gratification.

Believe that private tech growth will continue to outpace traditional asset classes over long time horizons.

This fund isn't about comfort. It's about positioning.

Why This May NOT Work for You

Let's be clear: this is not for everyone.

If you need income, this is the wrong product. There are no dividends (at least not yet).

If you need liquidity, this is the wrong product. You cannot exit freely.

If uncertainty stresses you out, this is the wrong product. You will not get constant feedback.

If you're early in your investing journey and still building discipline, this is premature.

If you're chasing hype or short-term gains, this could frustrate you.

Private investing requires psychological maturity. You have to be able to sit with uncertainty without inventing narratives.

The Trade-Off I Was Willing to Make

By moving capital from REITs into the Tech Innovation Fund, I gave up:

Predictable returns, high liquidity, and clear short-term valuation signals.

In exchange, I gained:

Access to private growth

Asymmetric upside potential

Alignment with long-term innovation trends

That trade-off only makes sense if you're honest about your goals.

I wasn't trying to feel safe. I was trying to grow capital meaningfully over the next decade.

The Bigger Picture

REITs are for stability. Private tech is for growth.

One protects. One expands.

Most people overweight protection because it feels responsible. But responsibility without growth eventually becomes stagnation.

I didn't abandon real estate entirely. I rebalanced my exposure to reflect where I believe real value creation is happening.

That's what investing is supposed to be: intentional allocation, not default behavior.

What's Next…

Switching from REITs to the Tech Innovation Fund wasn't about chasing returns. It was about updating my strategy.

Markets change. Opportunities change. Your portfolio should too.

If you want predictability, stick with REITs. If you want income, stick with REITs. If you want growth and can tolerate uncertainty, look elsewhere.

For me, that meant reallocating toward innovation and accepting the discomfort that comes with it.

Don't Think. START Investing.

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Disclaimer: This content is for informational and educational purposes only. It is not financial, investment, tax, or legal advice. Investing involves risk, including the potential loss of principal. Past performance does not guarantee future results. Always do your own research or consult a licensed financial advisor before making investment decisions.