\n<\/p>\n
\t\t\t\t\t\t\t\t<\/p>\n
Published on June 3rd, 2025 The Great Wealth Transfer is coming, and sooner than you think. But are real estate investment management firms ready?<\/span><\/p>\n Set to be the biggest transfer of wealth by 2048, people from Generation X (those born between 1965 and 1980) and millennials (1981-1996) are poised to become the biggest recipients of the $84.4 trillion inherited from the baby boomer generation.\u00a0<\/span><\/p>\n For real estate investment firms, this poses a huge opportunity. Real estate remains one of the most popular avenues for investing wealth \u2013 but firms may need to adapt and prepare quickly to changing investor behaviors and preferences.\u00a0<\/span><\/p>\n From modernizing investor communications to bringing marketing in line with current preferences to leveraging analytical tools and AI, let\u2019s look at what real estate firms can do to tap into this opportunity.<\/span><\/p>\n According to <\/span>Cerulli<\/span><\/a>, millennials are expected to inherit the most ($8 trillion) but Generation X stands to inherit the greatest amount over the next ten years ($14 trillion). While the idea of the Great Wealth Transfer was projected to unfold gradually, there are signs that it could be accelerating.<\/span><\/p>\n Baby boomers are increasingly following the trend of \u201cgiving while living,\u201d which involves passing assets on to their children now rather than leaving it in a will. Potential reasons for this include increased living costs, tax considerations, and knowing their children and grandchildren would benefit from the money and assets sooner rather than later.\u00a0<\/span><\/p>\n With that in mind, real estate firms shouldn\u2019t delay in building an action plan for the Great Wealth Transfer to retain and grow market share.\u00a0<\/span><\/p>\n The first consideration is how the main recipients, Generation X, millennials, and Generation Z, are likely to manage their upcoming wealth.\u00a0<\/span><\/p>\n Research from the <\/span>Bank of America<\/span><\/a> suggests that younger generations are increasingly skeptical of traditional investments in stocks and bonds and are more open to alternative investments.\u00a0<\/span><\/p>\n 72% of those aged between 21 and 43 agreed that \u201cit\u2019s no longer possible to achieve above-average returns solely with traditional stocks and bonds.\u201d Instead, alternative investment methods such as cryptocurrency, private equity, or direct investments into companies, are on the rise.\u00a0<\/span><\/p>\n However, things are still promising for those in real estate.\u00a0<\/span><\/p>\n The same study found that those aged between 21-43 highlight real estate investments as their top priority, with 31% viewing real estate as the biggest opportunity for growth. Our own data suggests that investor sentiment toward real estate is still positive, with <\/span>a 72% increase in investments <\/span><\/a>among 90% of investors in the 18-44 age range.<\/span><\/p>\n That doesn\u2019t mean that real estate can\u2019t learn a thing or two from the world of alternative investments. We need to look closer at what attracts younger generations and apply those lessons.\u00a0<\/span><\/p>\n After all, real estate may be competing with alternative investment routes and without significant improvements to outdated technology, communication processes, and approaches to customer experience, firms risk being left behind.\u00a0<\/span><\/p>\n So, what is it that <\/span>younger generations of investors want <\/span><\/a>and expect?<\/span><\/p>\n The minimum requirement that younger generations expect is a seamless digital experience with no friction when it comes to making and managing investments. These investors expect online portals, information readily available, and investor journeys that are all easily accessible through websites, applications, and online portals.\u00a0<\/span><\/p>\n The ability to monitor and manage investments from mobile devices is increasingly seen as table stakes for modern investment companies. While many traditional investing firms and banking have made strides in this area with dedicated mobile apps for 24\/7 control and management, real estate may need to catch up.<\/span><\/p>\n Regardless of industry, younger investors and consumers expect personalized experiences. With automation and AI, this is becoming more achievable for companies that seek to drive personalized customer experiences.\u00a0<\/span><\/p>\n However, younger investors appreciate options when it comes to communication and the ability to receive tailored support with real humans shouldn\u2019t be overlooked.<\/span><\/p>\n Younger investors are more likely to consider a company\u2019s environmental, social and governance (ESG) history when making an investment decision. <\/span>41% of respondents<\/span><\/a> said they consider this, with an overwhelming 82% between the ages of 24 and 43 highlighting this as a priority.\u00a0<\/span><\/p>\n Younger investors like options when it comes to communication. Outdated methods such as phone support and email communication may not be sufficient when other companies are providing things like online chats, real-time application notifications, and self-serve options for those who would rather not have to pick up a phone or write an email.\u00a0<\/span><\/p>\n Phone and email support are still important, but what younger generations expect today are options. That\u2019s what they get when interacting with their favorite companies, brands, and retailers, not just investment companies.\u00a0<\/span><\/p>\n What can real estate management companies do to leverage the Great Wealth Transfer opportunity? Let\u2019s look at the three strategies we recommend.\u00a0<\/span> For younger investors, a great digital investor experience is a must.<\/span><\/p>\n The first place to start would be to conduct a comprehensive audit of the existing real estate investment tools you provide to investors. Whether this involves tools that are built in-house or external tech partners, assess each one that impacts the customer experience for ease of use, accessibility, clarity of information, and mobile capabilities.\u00a0<\/span><\/p>\n To get more clarity on how this affects the customer experience, you may want to conduct short investor surveys to get their take on how they find the tools provided, as well as any analytics you have on usage. This is why we recommend using<\/span> automated reporting tools<\/span><\/a> to help investors keep on top of asset management and to build trusting relationships with investors.<\/span><\/p>\n At a minimum today, you should provide investors with access to a digital investor portal on your website. This will ideally be mobile-friendly or even better, available through an app, so that investors have 24\/7 access to portfolios, reporting, documents, and other features with real-time updates and information.\u00a0<\/span><\/p>\n If you decide to update or invest in upgrades on your tech stack, back this up with additional employee training to make sure that the customer support matches up to the digital experience. Train teams in online portal updates, apps, and any alternative communication methods or processes to make sure they\u2019re well-equipped to provide tailored support.\u00a0<\/span><\/p>\n Trust and transparency are critical in the customer experience, and one way to build that trust is to offer dedicated support, access to well-trained team members, and a digital experience that works seamlessly.\u00a0<\/span><\/p>\n Your instinct might be to dive straight into what we can do to attract younger investors, but let\u2019s not forget that the Great Wealth Transfer is not over yet. One important step to take is to start with the baby boomer generation.<\/span><\/p>\n Find ways to attract and reach out to baby boomers looking for wealth preservation strategies \u2013 one of which might just be real estate.\u00a0<\/span><\/p>\n This might require additional investment in marketing targeted to this age group, including speaking at industry events, creating relevant content, or sending letters about your wealth preservation offerings to your target audience.\u00a0<\/span><\/p>\n Another important component of this strategy is to ensure that you learn about the tax and legal implications of 1031 exchanges and Delaware Statutory trusts so that you can properly advise potential investors of their options.\u00a0<\/span><\/p>\n Extra training for staff to take calls and answer investor queries is also important to make sure that advice is accurate, consistent, and delivered in a way that builds trust with this age group.<\/span><\/p>\n Personalization is a growing expectation around consumer industries, and this has trickled into the financial services and investment management worlds too. The challenge with personalization is scaling it across a wider pool of investors.\u00a0<\/span><\/p>\n However, by doing this at scale, real estate investment management companies will be able to reduce overheads associated with providing the \u2018white glove\u2019 experience for a single investor by expanding that across the board.\u00a0<\/span><\/p>\n This is simply not possible to achieve without the proper technology and tools in place! Some ways you can use personalization in your investment management tools, include:\u00a0<\/span><\/p>\n What you can expect:<\/span><\/p>\n The Great Wealth Transfer is already underway and the sooner real estate management companies prepare and adapt, the better they\u2019ll fare in the upcoming market. This era poses a huge opportunity for those in real estate investment but only with the right preparation and technology partners.<\/span><\/p>\n To meet the needs of younger investors \u2013 streamlined digital experiences, personalization, ESG-focused, and mobile capabilities \u2013 your choice of real estate investment solutions will be pivotal.<\/span><\/p>\n By investing in the<\/span> right tools<\/span><\/a>, prioritizing tech investment and enhancing your customer experience, your company will be a front-runner for those looking to inherit and invest their wealth in real estate.<\/span><\/p>\n
By Brittany Benz<\/a><\/p>\nWhy the Great Wealth Transfer might be closer than we think<\/b><\/h3>\n
What Younger Investors Expect from Investment Management Firms<\/b><\/h3>\n
Seamless Digital Experiences<\/b><\/h3>\n
Mobile Capabilities\u00a0<\/b><\/h3>\n
Personalized Experiences\u00a0<\/b><\/h3>\n
Socially and Environmentally Responsible Companies\u00a0<\/b><\/h3>\n
Digital Communication Options and Self-Serve Options<\/b><\/h3>\n
How Real Estate Investment Management Firms Can Prepare for the Great Wealth Transfer<\/b><\/h3>\n
1.) Enhance and Implement a Digital Investor Experience\u00a0<\/b><\/h4>\n
2.) Target Baby Boomer Investors in Advance of the Great Wealth Transfer<\/b><\/h4>\n
\n
\n
\n
Get Ready for the Great Wealth Transfer with Forward-Thinking Solutions\u00a0<\/b><\/h3>\n