Real estate investing is not about instant wins. It is about compounding rent, strategic financing, and understanding that time in the market usually beats timing the market. That mindset is one reason why many members of TIGER 21, a peer group of ultra-high-net-worth individuals, entrepreneurs, and family office principals, continue to allocate the largest portion of their wealth to real estate.
In the latest TIGER 21 Asset Allocation Report for Q1 2025, real estate makes up 28% of the average portfolio, tied with private equity. This share is ahead of public equities at 24% and well above cash holdings at 10%.
|
Asset class |
Q1 2025 weight |
Change since Q1 2024 |
|---|---|---|
|
Real estate |
28% |
up 2 pp |
|
Private equity |
28% |
down 1 pp |
|
Public equities |
24% |
up 3 pp |
|
Cash and equivalents |
10% |
down 1 pp |
|
Fixed income |
6% |
down 2 pp |
|
Hedge funds |
1% |
down 1 pp |
Real estate and private equity have shared the top allocation for two consecutive quarters. At the same time, hedge fund exposure has fallen to just 1%, and fixed income allocations continue to shrink. Despite market volatility and shifting asset preferences, real estate remains a durable cornerstone for long-term portfolios.
• Skill Compounds Just Like Capital
Many TIGER 21 members made their early fortunes in construction, development, or asset-heavy operating businesses. By staying close to that expertise, they are able to underwrite risk with greater clarity than spreadsheets alone can provide.
• Inflation Can Work in Your Favor
Unlike many traditional investments, real estate income often adjusts with inflation. Whether through annual lease renewals, dynamic pricing in storage or hospitality, or rent escalations in industrial assets, real estate can protect purchasing power even when other yields lag.
• Collateral Unlocks Smarter Leverage
Tangible assets give lenders security. That typically results in better loan terms. Long-term debt backed by real property often comes with more flexibility and more favorable rates than unsecured alternatives.
• Control Can Add Return
Through direct or club deals, investors have more say over financing structure, capex priorities, and hold periods. While real estate is less liquid than equities, that control can be used strategically to create value that index-based investments cannot capture.
• Built-In Estate Planning Advantages
Real estate often receives a step-up in basis at inheritance. This eliminates capital gains for heirs. Combined with stable income and potential depreciation benefits, this makes it a powerful tool for multigenerational wealth transfer.
Even as these investors shift allocations in public markets or alternative strategies, real estate consistently holds its place. It typically never falls below the mid-twenties as a percentage of the overall portfolio. Real estate remains the ballast that steadies long-term performance while offering the potential to compound quietly over time.
You do not need a TIGER 21 badge or a nine-figure balance sheet to follow the same roadmap. Start with one well-chosen asset. Use leverage wisely. Reinvest distributions and keep liquidity available for your next deliberate move. Whether your portfolio includes five units or five hundred, the habits that support wealth at the highest levels, such as patience, stewardship, and a long-term mindset, apply at every stage.
Those who already hold extraordinary wealth continue to trust real estate to preserve and grow what they have built. For those still climbing, that is a signal worth noting. Property continues to reward those who think in decades, not days.
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