Real estate has a well-earned reputation for being a reliable source of passive income. In fact, the income component of the NPI (the index that tracks private real estate performance), has averaged a higher rate than the yields of these other major asset classes

Properties earn rental income from tenants. The more stabilized the property or higher its occupancy, the greater the chance of a steady and predictable stream of cash.

Private real estate has historically demonstrated low correlation with both publicly traded stocks and REITs. When public sectors of the market have exhibited greater degrees of volatility and vulnerability to investor sentiment, real estate has been steady in comparison — especially during the past three major economic crises.

Over the long-term, real estate may provide a hedge against inflation, since property values and rental income typically increase during periods of inflation

A balance of security with return potential Of the four major asset types now readily available to online investors, private real estate generally mitigates risk while still prioritizing attractive returns, as shown here

Real estate can provide diversification within a portfolio of traditional investments such as stocks and bonds. While the real estate market can fluctuate, it has been demonstrated over time to be less volatile than some other asset classes. The potential for this stability can be a distinct advantage to investors.