Private real estate fund interests usually cannot be sold or redeemed for many years. Before investing, make sure you have accessible cash for life’s surprises.
Checklist
- An emergency fund (many planners suggest 3–12 months of expenses, depending on job stability and dependents).
- Known upcoming costs: home purchase or move, tuition, weddings, medical care, a business launch.
- Ability to meet future capital calls on short notice if you commit to a fund that draws money over time.
If a job loss or large bill would force you to sell something, the illiquid investment won’t be that something; you’d have to sell other assets, perhaps at a bad time.
Related
Your journey
More on this stage: Deep Dive: How 506(c) Accreditation Verification Works · Deep Dive: Calculating Net Worth Without Your Home · Deep Dive: Talking It Through as a Household
Start the next stage: Phase 2: Now you think you are an investor