When most people think of “assets under management” (AUM), they think of portfolios of equities, bonds, and cash equivalents. However, for many investment property owners, a large portion of their net worth exists outside these traditional channels, in the form of physical real estate.
That creates a problem: real estate wealth often sits outside the scope of formal financial advice, creating a gap between what clients own and what their advisors manage. For financial professionals, this is a missed opportunity. For clients, it’s a missed chance to align their real estate holdings with their long-term goals fully. Reframing how AUM is viewed can help surface real estate assets that may be integrated into a more holistic advisory approach, when appropriate.
Across the country, millions of property owners hold investment real estate that doesn’t appear in their advisors’ dashboards or planning tools. This may include:
In many cases, these assets may represent hundreds of thousands—or even millions—of dollars. But they’re illiquid and independently managed, so they’re often excluded from active planning. This can create misalignment between income planning, tax strategy, estate planning, and liquidity management.
When real estate is not integrated into the overall financial strategy, it can introduce gaps that affect both decision-making and long-term outcomes. Potential issues may include:
This fragmentation makes it difficult for the advisor and the property owner to build a cohesive, future-ready financial plan.
Investment Property Wealth Management (IPWM) offers a solution. By treating real estate as a strategic asset class—on par with stocks or bonds—advisors and clients can work together to:
When thoughtfully executed, this framework can help transform unmanaged real estate into coordinated elements of a goals-based plan.h.
Including real estate holdings in the advisory conversation may support more effective planning related to cash flow, liquidity needs, and long-term wealth transfer. For many clients, these properties represent not only a source of income but a significant component of their net worth.
Real estate assets may involve additional complexity, including management responsibilities, illiquidity, and exposure to market-specific risks. Advisors should evaluate how and whether to incorporate such holdings based on each client’s goals, risk profile, and planning horizon. By helping clients understand how real estate fits into their total financial picture, advisors can deepen relationships and offer a more complete wealth management experience.
While investment properties may fall outside a custodied account, they may still play an important role in building durable, well-aligned financial strategies. Evaluating this “hidden” AUM offers the potential to uncover new opportunities and improve financial clarity for both clients and advisors.
The tax and estate planning information offered by the advisor is general in nature. It is provided for informational purposes only and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.
Article written by: Story Amplify. Story Amplify is a marketing agency that offers services such as copywriting across industries, including financial services, real estate investment services, and miscellaneous small businesses.