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FORBES: Building Legacy Brick By Brick: Lessons On Real Estate Investing For Family Offices ​

Jun. 10. 2025

​Published By Dj Van Keuren ​ | Co-Mgr Member Evergreen ​ | Founder Family Office Real Estate Institute ​ | President Harvard Real Estate Alumni Org. ​

The Enduring Power of Real Estate ​

Real estate is often viewed as a legacy vehicle for high-net-worth families and family offices due to its ability to appreciate and provide steady income. ​ Unlike stocks, businesses, or cash, real estate offers permanence and stability, making it a critical component of long-term wealth strategies. ​

The Appeal of Real Estate Investments ​

1. The Psychology of Permanence ​

Real estate’s tangibility makes it appealing. ​ Unlike paper assets, it is physical, visible, and rooted, creating emotional resonance. ​ Family members can visit properties and see the direct impact of their investments. ​

2. Cash Flow and Control ​

Real estate provides portfolio diversification, stable cash flow through rent, and equity appreciation over time. ​ It serves as a steady financial backbone for family offices, supporting future generations. ​

3. A Teaching Tool ​

Real estate can be a platform for teaching financial literacy, analytical thinking, and leadership to next-generation family members. ​ Involving heirs in real estate decisions fosters accountability and helps them understand the effort behind wealth creation. ​

Legacy Real Estate: Six Strategic Risks Family Offices Must Manage ​

1. Concentration Risk

Over-reliance on a single property type, location, or operator can lead to outsized losses during downturns. ​ Diversification across markets, asset classes, and sponsors is essential. ​

2. Illiquidity and Misaligned Time Horizons ​

Real estate investments are not liquid and may tie up capital for years. ​ Educating all stakeholders, especially next-gen investors, is crucial to align expectations. ​

3. Regulatory and Tax Uncertainty ​

Changes in tax laws can disrupt strategies. ​ Annual legal and tax reviews are necessary, and structures like TICs, DSTs, or UPREITs can provide agility. ​

4. Market Volatility

Rising debt costs, tighter credit, and refinancing risks define the current real estate landscape. ​ Stress-test deals, lock in fixed-rate financing, and plan for cap rate expansion. ​

Final Word

Real estate is more than an asset—it’s infrastructure for legacy. ​ It can generate income, store value, and anchor family identity when approached thoughtfully and with risk management. ​ Successful investors treat real estate as a long-term platform for wealth, stewardship, and purpose. ​

Disclaimer: The information provided is not investment, tax, or financial advice. ​ Consult a licensed professional for advice specific to your situation. ​

About the Author: Dj Van Keuren is Co-Mgr Member Evergreen, Founder of the Family Office Real Estate Institute, and President of the Harvard Real Estate Alumni Organization. ​

To read this Forbes Article ​

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