Direct Real Estate Acquisition
Managing commercial and residential property portfolios within the family office structure.
Yield vs. Hassle
Direct real estate offers depreciation benefits, steady yield, and a hedge against inflation. However, it is highly operationally intensive. The "toilet, tenants, and trash" problem requires a dedicated property management layer, which eats into operating budgets.
Structuring Holdings
Never hold real estate in the same entity as liquid assets. Each major property should be siloed in its own LLC (or Series LLC) rolling up to a master Real Estate HoldCo. See our structuring guide.
| Asset Type | SFO Benefit | Operational Burden |
|---|---|---|
| NNN Commercial | Predictable yield, low hassle | Low |
| Multi-family | High depreciation, value-add | High |
| Trophy / Legacy | Generational anchoring | Medium (usually negative yield) |
Common Mistakes
Underestimating the true capital expenditure (CapEx) required to maintain direct properties, leading to "yield chasing" where net returns end up lower than passive REITs once internal management time is factored in. Use our Yield Adjuster to check math.
Take the Next Step
Model your specific requirements using our interactive operational and setup tools.
View SFO Tools