Ali Moallem co-founded Leveridge, an AI-powered mortgage planning tool for financial advisors that provides instant insights and automated analysis.
Russ Alan Prince: Why don’t most financial advisors build real estate planning into their practices?
Ali Moallem: One major reason is the lack of expertise. Many advisors simply don’t feel confident in the real estate market, with about 35% admitting they don’t understand it well enough to offer advice. In fact, only 23% of clients see their financial advisors as knowledgeable when it comes to real estate.
On top of that, operational challenges make it tough. Nearly 30% of advisors don’t have the right platforms or processes to easily integrate real estate planning. And, real estate is time-consuming—it often gets pushed aside for more traditional financial planning tasks. Without streamlined solutions, it can seem like too much extra work.
Finally, regulatory and compliance concerns are a big factor. Advisors might feel uncomfortable giving guidance on real estate if they’re not experts or don’t have the right data to back their recommendations. They also face hurdles like licensing and potential liabilities, which deters about 41% of advisors from diving into real estate planning.
Prince: How do advisors benefit from having instant real estate insights?
Moallem: Instant real estate insights give advisors a real advantage. First and foremost, it allows them to offer more holistic financial advice by including real estate in the overall wealth picture. Clients are making big real estate decisions, and having immediate data helps advisors guide them better, building stronger trust and confidence.
Advisors can also spot new opportunities or risks in a client’s real estate portfolio, whether it’s an underperforming property or the potential to diversify into different types of real estate. With up-to-date insights, advisors can anticipate shifts in the market, take advantage of tax benefits, and even safeguard assets under management.
Moreover, having these insights saves time. What used to be a labor-intensive process now becomes more streamlined, allowing advisors to easily integrate real estate into their workflow without losing focus on other financial areas.
Prince: Why is the financial planning industry ripe for disruption by real estate planning?
Moallem: The financial planning industry is on the brink of a major shift, and real estate planning is emerging as a powerful tool for advisors to navigate this disruption. One of the biggest drivers of change is the massive $129 trillion wealth transfer from baby boomers to their children. Much of this wealth is tied up in real estate, and as beneficiaries inherit homes and investment properties, they’ll need expert guidance on how to manage, sell, or reinvest these assets. For advisors, this presents a unique opportunity to step in and offer much-needed advice that goes beyond traditional financial planning.
Advisors who are equipped to handle these inherited properties can help clients minimize taxes, preserve wealth, and make smart long-term real estate decisions. This is particularly important for millennials and Gen Xers, who may be unfamiliar with managing large real estate assets. With the right real estate planning tools, advisors can create strategies that not only help clients navigate the immediate decisions surrounding inheritance but also set them up for future growth. It’s about ensuring that real estate assets continue to build wealth for generations to come.
At the same time, the real estate affordability crisis is making expert financial advice more critical than ever, especially for younger clients and HENRYs—High Earners, Not Rich Yet. These clients are facing tough choices, from buying their first homes to deciding whether real estate is a viable investment in a volatile market. Many are struggling to balance their earning potential with the rising costs of property, which makes personalized, data-driven insights essential. Advisors who can help these clients find opportunities and navigate the complexities of the market will not only stand out but also become indispensable in their clients' financial journeys.
What really sets financial advisors apart in this era is their ability to offer a more holistic approach—one that goes beyond stocks and bonds to include real estate, an emotional and often overlooked asset. While robo-advisors offer convenience and low-cost solutions, they can’t provide the personalized, human-centered advice that’s required when dealing with something as significant as real estate. Real estate represents more than just financial value; it’s tied to personal milestones, family considerations, and long-term life goals. Advisors who can integrate these emotional and financial aspects into their planning process are able to forge deeper connections with clients, building trust that robo-advisors can’t replicate.
In a world where AI and technology dominate, real estate planning gives advisors a chance to slow down and connect with clients on a more personal level. By offering real estate insights that address both the financial and emotional needs of clients, advisors position themselves as irreplaceable partners in their clients' financial lives. This combination of empathy and expertise creates opportunities for growth, deepens relationships and allows advisors to stand out in an increasingly competitive industry.
Russ Alan Prince is a strategist for family offices and the ultra-wealthy. He has co-authored 70 books in the field, including Making Smart Decisions: How Ultra-Wealthy Families Get Superior Wealth Planning Results.