How To Sell Illiquid Investments:
Liquidity Options Before A Planned Exit

If you need cash before an investment’s expected exit, the first question is which process applies to your holding. Non-traded REIT shares, DST interests, partnership interests, non-traded BDC shares, and interval fund shares have different structures and liquidity arrangements.

This guide helps investors and authorized representatives identify the route to investigate. It focuses on non-traded financial investments rather than directly owned property, collectibles, or other physical assets.

A planned holding period is not necessarily a contractual maturity or redemption date. Confirm what the documents actually promise before treating an expected exit as a payment deadline.

Which Type Of Illiquid
Investment Do You Own?

Use the investment’s full legal name, share class or interest type, and ownership registration. A sponsor’s name or an account category such as “alternative investments” is not enough to identify the correct sale process.

These categories can overlap. “Private placement” describes an offering method, while “private credit” describes an investment strategy. Neither term, by itself, tells you which repurchase or transfer process applies.

For investment-specific research, use the Non-Traded REIT Directory , DST Directory, or Private Fund & Partnership Investment Directory . Investors holding land partnerships can also review Walton U.S. Land Fund liquidity .

What Options May Exist
Before The Planned Exit?

Issuer Redemption Or Repurchase

The issuer purchases the investment under a program or offer. Check whether the program is currently operating, your eligibility, the submission deadline, pricing, deductions, acceptance limits, and payment terms. Submitting a request does not establish that the full amount will be accepted.

The SEC’s REIT investor bulletin discusses liquidity limitations. AIL’s 2026 suspended-redemptions guide provides selected issuer examples. Confirm current issuer information separately.

Tender Offer

A tender offer invites holders to sell under specified terms. The purchaser may be the issuer or an outside party. Identify the purchaser, price, quantity sought, expiration, proration, withdrawal provisions, deductions, and completion conditions. An issuer repurchase may itself use a tender offer.

Permitted Secondary Sale

Another purchaser acquires an existing investor’s holding. A sale requires actual buying interest, agreed terms, compliance with applicable securities laws, and satisfaction of the investment’s transfer requirements. A transfer form does not establish an available buyer.

For more detail on one asset class, see the non-traded REIT secondary market . Do not assume that a route available for one investment works for every holding.

Continue Holding For A Future Event

Some owners may wait for a property sale, listing, merger, liquidation, or another planned event. This preserves exposure to future outcomes, including further delays or losses. A transaction announcement does not necessarily establish immediate cash proceeds for investors.

For interval funds, begin with the fund’s periodic repurchase process. The SEC explains that shareholders cannot assume they can sell whenever they wish or that an entire request will be accepted. Do not treat a private resale as a standard alternative without confirming that one is permitted and available.

What Determines Whether
The Investment Can Be Sold?

Review the governing agreement, offering documents, amendments, current program notices, and transfer instructions. The SEC’s private-placement bulletin explains that these investments may be highly illiquid and subject to resale restrictions.

• Is the proposed transfer permitted, and does consent need to be obtained?
• Does a right of first refusal or other purchase right apply?
• Which purchaser qualifications and ownership limits apply?
• Are partial sales allowed, and are minimum holdings required?
• What signatures, guarantees, forms, and supporting records are needed?
• Which charges apply, and who pays them?
• How are distributions and any continuing funding obligations handled?

Transfer permission, purchaser availability, and completion requirements are separate questions. A willing buyer and a signed agreement do not override restrictions or complete the ownership change.

DST Tax Treatment Requires Separate Review

IRS Revenue Ruling 2004-86 addresses the DST structure described in that ruling and potential Section 1031 treatment. It does not create a resale market or establish that a particular secondary transaction preserves tax deferral. Discuss the proposed structure with qualified tax professionals before committing to a transaction.

How Do You Compare
An Offer With Other Options?

A statement value, published NAV, capital account, tax basis, and proposed sale price serve different purposes. Confirm the investment, quantity, valuation date, and calculation behind each number before comparing them.

A purchaser may consider the underlying assets, debt, distributions, expected holding period, transfer restrictions, future funding requirements, transaction costs, and the difficulty of reselling. An offer can be substantially below a reported value without establishing an independently determined fair value.

For a fuller explanation, see NAV, Capital Account, Tax Basis And Sale Price: Why The Numbers Differ . Apply the concepts appropriate to the legal and tax structure of the holding.

A higher price for a small accepted quantity may provide less immediate cash than a lower price for a larger quantity. Neither price alone establishes the better choice. A discount to NAV also does not, by itself, establish a deductible tax loss.

What Changes For Estates,
Trusts, And Custodial Accounts?

The person requesting a review may not be the registered owner or recognized signing representative. Confirm ownership and authority before entering into transfer documents.

Depending on the account and investment, records may include a death certificate, executor or administrator appointment, trust certification, entity authorization, tax forms, custodian paperwork, and signature guarantees. Obtain the current checklist for the account rather than assuming every document applies.

Confirm the representative’s current authority with the issuer or administrator and the appropriate legal professional. Authority to act for one owner, account, or capacity should not be assumed to cover a different ownership arrangement.

For retirement accounts, confirm how the custodian must participate in transfer and payment. An account move or removal of a holding is different from selling it for cash.

Additional resources are available for attorneys, trustees, executors, and other fiduciaries .

Where Should You Begin
If You Need Liquidity?

1. Identify The Holding And The Need

Start with the full investment name, share class or interest type, approximate balance, ownership type, and target timing. Separate a firm cash deadline from a preference to simplify the portfolio.

2. Confirm Current Alternatives

Review the issuer’s latest programs and notices, transfer requirements, and any actual purchase proposal. An anticipated future exit is different from an open offer with documented terms.

3. Establish Whether The Transaction Can Be Completed

Confirm purchaser interest and eligibility, required consent, signing authority, fees, and payment arrangements. Disclose pending redemption requests or competing transfer instructions before committing the same holding elsewhere.

4. Compare And Document The Decision

Assess quantity, net proceeds, timing, conditions, and continuing exposure with your advisors. Keep the proposal, supporting documents, and confirmation of any completed transfer and payment.

For a detailed review, recent statements and governing documents may be requested. Confirm the submission method before sending sensitive personal information. Learn how AIL’s Confidential Investment Review works .

Non-Traded Investment
Liquidity FAQs

Can You Sell A Non-Traded Investment Before Maturity?

In some cases, yes. Potential liquidity can come from an issuer redemption or repurchase program, tender offer, private secondary-market transaction, or another permitted transfer. The available alternatives depend on the investment's governing documents, issuer or sponsor procedures, transfer restrictions, and current buyer demand.

What Is A Secondary Market For Non-Traded Investments?

A private secondary market can allow eligible buyers and sellers to negotiate transfers of investments that do not trade on a national securities exchange. Unlike a public stock market, there may be no continuously quoted price, centralized order book, or guarantee that a purchaser will be available.

Why Can A Secondary-Market Offer Be Below NAV Or Reported Value?

A private purchaser may account for illiquidity, uncertain exit timing, transfer restrictions, administrative expenses, future capital requirements, distribution history, asset risk, and the return required for holding an investment that may remain difficult to resell. An issuer-reported value and a private purchase offer therefore may represent different measures.

How Long Does It Take To Sell A Non-Traded Investment?

Timing varies substantially. A transfer may require document preparation, signatures, a Medallion Signature Guarantee, custodian involvement, transfer-agent processing, sponsor or issuer approval, purchaser eligibility review, and final registration of the new owner.

What Documents Are Usually Needed?

A current account statement and the investment's governing documents are generally the best starting point. Depending on the ownership structure, additional documentation may include trust records, estate documents, powers of attorney, tax forms, custodian paperwork, transfer forms, or evidence of authority to act for the registered owner.

How Can An Investor Compare Available Liquidity Options?

Investors should compare potential net proceeds, timing, execution risk, transfer requirements, fees, taxes, future distributions, issuer-sponsored alternatives, and the potential benefits and risks of continuing to hold the investment. A headline purchase price alone may not capture the full economics of an exit.

Review Your
Illiquid Investment With AIL

AIL evaluates selected holdings for potential liquidity opportunities. Depending on the investment, a holding may be considered for purchase by Baron De Biltmore, LLC, an affiliated buying entity. AIL supports the review and transaction coordination process; an inquiry does not guarantee a purchaser, offer, transfer approval, or completion.

Explore AIL’s review processes for non-traded REIT shares , DST interests, and limited partnership interests , or visit Private Fund & Partnership Liquidity Options .

Investors and authorized representatives can request a Confidential Investment Review with basic holding details. An inquiry does not obligate you to sell.

Ferrel H. Raskin

Ferrel H. Raskin is the Founder and Chief Executive Officer of Alternative Investment Liquidity, LLC. He leads the firm’s strategic direction, investor outreach, business development, and evaluation of illiquid alternative investment opportunities.

Alternative Investment Liquidity focuses on potential liquidity solutions for non-traded REITs, Delaware Statutory Trust interests, limited partnership interests, private placements, and other difficult-to-transfer investment positions.