10 Questions to Ask Before Investing Your Money

Private Real Estate’s Stability Amid Market Fluctuations

At Kailman, we continuously track and compare the performance of public equities, REITs, and private real estate using reliable benchmarks such as the S&P 500, the IYR ETF (representing public REITs), and the NCREIF Property Index (representing institutional private real estate).

Historically and continuing into today’s unpredictable 2025 market private real estate has demonstrated lower volatility and less correlation with the day-to-day fluctuations of the stock market.

This relative stability makes it an attractive option for investors seeking to diversify risk and preserve capital during uncertain economic conditions.

Why Overexposure to Volatile Assets Can Increase Risk

Investors heavily concentrated in public equities or publicly traded REITs may face amplified risk due to their high correlation. When the markets drop, both tend to move in tandem potentially compounding losses.

A portfolio that incorporates private real estate investments, on the other hand, may experience smoother performance through diversification. Because private real estate isn’t traded daily, it is less affected by short-term sentiment and market headlines helping to reduce overall portfolio volatility.

Potential Advantages of Private Real Estate

For accredited investors, private real estate can offer several key benefits, particularly in turbulent markets:

• Reduced volatility compared to public equities and REITs

• Consistent cash flow potential throughout the investment period

• Favorable tax advantages, including depreciation and cost segregation benefits

• A potential hedge against inflation and economic uncertainty

In an era where traditional markets are unpredictable, private real estate offers an appealing combination of income generation, diversification, and long-term stability.

A Valuable Component of a Diversified Portfolio

In times of market instability, the focus for many investors shifts from aggressive growth to wealth preservation. Private real estate can be a strategic addition to a diversified portfolio helping balance market risk while providing opportunities for income and appreciation.

It’s important to remember, however, that while private funds often show greater price stability, the underlying real estate assets themselves can still fluctuate in value. Responsible investing requires a long-term outlook and a clear understanding of both the benefits and risks involved.

Explore How Private Real Estate Fits Into Your Portfolio

If you’re considering how private real estate might strengthen your investment strategy, Kailman can help.
Our approach focuses on disciplined acquisition, active management, and tax-efficient fund structures designed to help accredited investors access the benefits of true private real estate without the daily market noise.

Contact Kailman today to learn more about our investment offerings and how we help investors build resilient, well-diversified portfolios.

Important Disclosures and Risk Considerations

Private investments are highly speculative, illiquid, and may involve a complete loss of capital. They are not suitable for all investors. Past performance is not indicative of future results. Investors should conduct their own due diligence and consult with qualified professionals such as a financial advisor, attorney, and accountant to understand and assess all potential risks.

This material is provided for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security.

A private real estate investment involves various risks and uncertainties, many of which may not be outlined here. These include but are not limited to market, operational, interest rate, occupancy, inflationary, natural disaster, capitalization rate, regulatory, and tax-related risks. These factors may cause actual results to differ materially from expectations