Published on June 3rd, 2025
By Brittany Benz

The Great Wealth Transfer is coming, and sooner than you think. But are real estate investment management firms ready?

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. 

For real estate investment firms, this poses a huge opportunity. Real estate remains one of the most popular avenues for investing wealth – but firms may need to adapt and prepare quickly to changing investor behaviors and preferences. 

From modernizing investor communications to bringing marketing in line with current preferences to leveraging analytical tools and AI, let’s look at what real estate firms can do to tap into this opportunity.

Why the Great Wealth Transfer might be closer than we think

According to Cerulli, 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.

Baby boomers are increasingly following the trend of “giving while living,” 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. 

With that in mind, real estate firms shouldn’t delay in building an action plan for the Great Wealth Transfer to retain and grow market share. 

What Younger Investors Expect from Investment Management Firms

The first consideration is how the main recipients, Generation X, millennials, and Generation Z, are likely to manage their upcoming wealth. 

Research from the Bank of America suggests that younger generations are increasingly skeptical of traditional investments in stocks and bonds and are more open to alternative investments. 

72% of those aged between 21 and 43 agreed that “it’s no longer possible to achieve above-average returns solely with traditional stocks and bonds.” Instead, alternative investment methods such as cryptocurrency, private equity, or direct investments into companies, are on the rise. 

However, things are still promising for those in real estate. 

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 a 72% increase in investments among 90% of investors in the 18-44 age range.

That doesn’t mean that real estate can’t 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. 

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. 

So, what is it that younger generations of investors want and expect?

Seamless Digital Experiences

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. 

Mobile Capabilities 

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.

Personalized Experiences 

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. 

However, younger investors appreciate options when it comes to communication and the ability to receive tailored support with real humans shouldn’t be overlooked.

Socially and Environmentally Responsible Companies 

Younger investors are more likely to consider a company’s environmental, social and governance (ESG) history when making an investment decision. 41% of respondents said they consider this, with an overwhelming 82% between the ages of 24 and 43 highlighting this as a priority. 

Digital Communication Options and Self-Serve Options

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. 

Phone and email support are still important, but what younger generations expect today are options. That’s what they get when interacting with their favorite companies, brands, and retailers, not just investment companies. 

How Real Estate Investment Management Firms Can Prepare for the Great Wealth Transfer

What can real estate management companies do to leverage the Great Wealth Transfer opportunity? Let’s look at the three strategies we recommend. 

1.) Enhance and Implement a Digital Investor Experience 

For younger investors, a great digital investor experience is a must.

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. 

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 automated reporting tools to help investors keep on top of asset management and to build trusting relationships with investors.

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. 

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’re well-equipped to provide tailored support. 

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. 

2.) Target Baby Boomer Investors in Advance of the Great Wealth Transfer

Your instinct might be to dive straight into what we can do to attract younger investors, but let’s not forget that the Great Wealth Transfer is not over yet. One important step to take is to start with the baby boomer generation.

Find ways to attract and reach out to baby boomers looking for wealth preservation strategies – one of which might just be real estate. 

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. 

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. 

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.

3.) Deliver Personalized Experiences at Scale 

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. 

However, by doing this at scale, real estate investment management companies will be able to reduce overheads associated with providing the ‘white glove’ experience for a single investor by expanding that across the board. 

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: 

• An Investor-Focused CRM: Real estate investment companies will need an investor-focused customer relationship management (CRM) tool that allows investors to track entities and communications. Giving investors a way to self-serve K-1s, get access to fundraising documents, and receive reminders all in one place will help to build consistency in your service and maintain trust.

• Automated Reminders: We recommend using automation to create triggers for proactive outreach opportunities. For example, personal circumstances such as an outstanding tax return could trigger an automated reminder to investors. Reminders and updates that are sent in real-time help to give investors a personalized feel that keeps them informed without them having to contact you. To further enhance the investor experience, you could use AI to anticipate investor questions or concerns throughout their journey and segment investors into different groups to receive relevant updates, advice, or reminders tailored to them.
• Data Visualizations: Rather than sending over monthly or quarterly reports in the form of spreadsheets of data that require more interpretation and context, use the data you have to create and share visualizations or interactive dashboards that showcase the story behind the data.
• Real Estate Investment Solutions to Attract and Retain Younger Investors: The best way to prepare for the Great Wealth Transfer and appeal to younger investors is to partner with the right real estate investment solutions. AppFolio Investment Manager offers multiple features and tools that help real estate companies grow, scale, and future-proof their business for the next generation of investors. 

What you can expect:

• A Dedicated Mobile App: AppFolio is one of the only real estate software providers that offers a dedicated mobile app for investors. The app provides a centralized record for investors to monitor and manage residents and properties, with the ability to upload photos and notes to make real estate portfolio management easier.  
• Investor Experience Personalization at Scale: Personalization is possible with our real estate investor CRM system that enables investors to gather interest in offerings, capture leads, and collect capital. Investors can easily track and manage leads from one dashboard and organize data such as contact information, tax and bank account data, and documents. The CRM system is also integrated with email providers to make it even easier to track, send, and create emails and segment audiences for better, more relevant communications with residents. 
• Faster Operations: Investors can use AppFolio to accelerate fundraising, automate cash flow, streamline distributions, and manage investor payments more efficiently. To fast-track fundraising, users can securely share and sign documents electronically within AppFolio without having to rely on another third-party tool. 
• AI Innovation: By utilizing AI capabilities in AppFolio, investors and their teams can free up their time to work on more meaningful tasks and provide a better customer experience with personalized communication. Smart maintenance is possible with AppFolio to help investors intelligently manage maintenance requests through an online portal and fast-track solutions. AI is also built into accounting and reporting to save time and minimize errors when it comes to processing invoices, late fees, and monthly owner statements. 
• Sustainable Partnerships: For investors who make ESG matters a priority, partnering with AppFolio enables investors to dedicate attention to responsible, sustainable investing. A great example of this is Paladin Realty Partners, LLC, who achieved sustainable growth while making an impact in their communities with affordable, modern workforce housing. After partnering with AppFolio, they transformed the investor experience with better communication, streamlined processes, and instant access to key reports and insights. Read more about their approach to sustainable investing in our customer story.

Get Ready for the Great Wealth Transfer with Forward-Thinking Solutions 

The Great Wealth Transfer is already underway and the sooner real estate management companies prepare and adapt, the better they’ll 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.

To meet the needs of younger investors – streamlined digital experiences, personalization, ESG-focused, and mobile capabilities – your choice of real estate investment solutions will be pivotal.

By investing in the right tools, 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.

So, act now (don’t wait) to make sure your firm comes out ahead in the Great Wealth Transfer! To learn more about how to attract and retain investors and provide a great customer experience, see our free guide.