For Tech professionals with equity

Private real estate for tech professionals: beyond RSUs

Equity compensation can concentrate your wealth in one stock. A practical look at using private real estate to diversify, and the liquidity trade-offs.

Why it comes up

Why tech professionals look at private real estate

Diversifying away from a concentrated employer stock position.
Exposure to a less correlated, income-producing asset class.
Using proceeds from vested or sold equity.

What to watch

Considerations specific to you

Selling RSUs or options has tax consequences; plan sales with a tax advisor before committing capital.
Vesting schedules and lockups affect when cash is actually available.
Private real estate is illiquid, unlike the public equity you're diversifying from.

Accreditation

How accreditation usually applies

Most private real estate offerings are limited to accredited investors. Sponsors using Rule 506(c) must verify your status.

Income test: $200,000+ individually or $300,000+ jointly in each of the last two years, with the same expected this year.
Net worth test: $1 million+, alone or with a spouse or spousal equivalent, excluding your primary residence.

Summary of SEC rules for education. Confirm your status with your advisor; sponsors may request documentation. See who qualifies.

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