What Accredited Investors Are Exploring Beyond the Stock Market

For decades, the stock market was the go-to destination for investors seeking growth, income, and portfolio diversification. But in recent years, a notable shift seems to have occurred: accredited investors with the income, net worth, and financial sophistication to access exclusive opportunities are increasingly looking beyond Wall Street.

Instead of putting more capital into a volatile market, they’re reallocating into private, alternative assets that offer stronger downside protection, better risk-adjusted returns, and more predictable income.

So, what’s driving this change? 

Here are the top five reasons why accredited investors are moving away from the stock market and what they’re choosing instead.

Reason #1 Public Market Volatility and Uncertainty

From geopolitical instability and interest rate swings to tech sector bubbles and inflation concerns, the stock market has become a rollercoaster. Rather than chasing returns in an unpredictable environment, many investors are seeking lower correlation to public markets, more stable, long-term performance, and less emotional investing. Private real estate investing can provide that predictability and control. 

Reason #2 Lack of Real Diversification in Public Portfolios

While traditional portfolios have been a staple of wealth management, they often fall short during economic downturns or inflationary periods when stocks and bonds can both decline together. Accredited investors are realizing that true diversification comes from alternative assets, such as private real estate. 

Reason #3 Access to Institutional-Quality Private Investments

One of the biggest advantages accredited investors have is access. They can invest in opportunities that are not available to the general public through alternative investments. These private investments are often less liquid but more stable, with structures designed to protect capital, generate tax-efficient income, and align with long-term goals.

Reason #4 Tax Efficiency and Wealth Preservation

High-net-worth individuals are focused not just on what they earn, but what they keep. Public stocks, especially when frequently traded, often trigger capital gains taxes or ordinary income taxes. Private real estate investments, on the other hand, can offer depreciation deductions, deferral or potential elimination of capital gains taxes and estate planning advantages. Accredited investors are leveraging these structures to optimize after-tax returns and preserve wealth across generations.

Reason #5 Greater Control and Transparency

In the stock market, you’re often just one of millions of shareholders, with little to no control or visibility into decision-making. In private investments, especially in real estate, accredited investors often enjoy access to the fund sponsor or operator with clear insights into the investment strategy, fees and performance. This level of involvement and alignment with fund sponsors gives them more confidence and peace of mind.

The stock market isn’t going away, but accredited investors are increasingly looking into alternative investments to preserve wealth and minimize their tax liability. By allocating capital into private real estate investments, they have the opportunity to build portfolios that are more stable, diversified and tax-efficient.

For investors looking to diversify into real estate, we have two active OZ Funds that allow investors selling their stock to defer and potentially eliminate their tax liability.

Both our Sinatra & Shnow OZ Fund and the Solmar St. Pete OZ Fund offer investors the opportunity to capitalize on the powerful tax deferral benefits of Qualified Opportunity Zone (QOZ) investing. By reinvesting eligible capital gains into either of these funds, investors can defer paying taxes on those gains until as late as December 31, 2026. Even more compelling, any new appreciation earned within the OZ investment itself can become completely tax-free if the investment is held for at least 10 years. Additionally, these funds are structured to eliminate depreciation recapture, providing another layer of tax efficiency. 

Whether it’s the community-focused redevelopment of historic multifamily properties in Buffalo or the ground-up construction of a luxury apartment tower in downtown St. Petersburg, both funds offer a strategic path to long-term, tax-advantaged growth.

Want to Learn More?

Schedule a call with us to learn more about how you can get started with private real estate investing and take a look at our current projects.