The Ugly Truth About Traditional Real Estate Investments: Limited and Clunky Exits

The traditional real estate investment industry faces significant challenges when it comes to providing access to and exiting investment products. This is particularly true for retail investors due to high minimum investment requirements and inefficient KYC processes. The industry is not conducive to small investors because the costs of maintaining these relationships outweigh the fees earned. Liquidity is also limited, and exiting non-listed real estate products is cumbersome, except for those in large REITs that can sell shares on stock exchanges. Without this option, investors can become trapped by the industry's inefficiencies.