With recent market volatility and trade tensions encouraging many to reevaluate their strategies, these clients are looking beyond traditional equities and fixed income to maximize their portfolio’s resilience and upside. One asset class that keeps coming up is private equity real estate and the stability of multifamily real estate.
“Multifamily real estate — think rental apartments — are the definition of a generational, long-term strategy,” says Lang. “If you’re looking for monthly income, tax efficiency, potential for capital appreciation, and wealth preservation, there are many reasons we see investors turning to multifamily real estate.”
Strategies for long-term wealth building
The nature of multifamily investing means advisors should shift conversations away from short-term gains and toward long-term, tax-aware strategies. Lang says investors often aim for consistent monthly income in the 5.5% to 6% range while also deferring or minimizing taxes to maximize what can be reinvested. “That reinvestment of gains is key. The effects of compounding can accelerate generational wealth goals, and having more to reinvest — paying fewer taxes along the way — can get you there even faster,” says Lang.
Lang encourages advisors to explore different account types and investment structures that can support intergenerational goals. “There’s in-trust-for accounts that children won’t get until they’re 18,” he notes. “Other investors will create joint account arrangements with their adult children which, depending on their situation, can help minimize taxes as their nest egg is passed on. It’s worth looking into.”
These vehicles provide flexibility to pass on wealth responsibly — whether by helping with education, down payments, or simply offering a financial foundation.
