April 4, 2023

By: Danielle Jackson, Investor Relations, Senior Manager

It takes money to make money! We’ve all heard this saying, and while true, it’s not 100 percent accurate. Making money takes time, effort, knowledge, and capital that is converted into income. But the wealthy don’t just expect their wealth to grow; they plan for the next generation to maintain and build it.  

Generational wealth is a method of securing financial wellness to help safeguard the financial wellness of our children, perhaps our grandchildren, and so on. The goal is to grow assets and income over time, putting each generation in a better financial position than the previous one. However, 70 percent of affluent families lose their wealth by the next generation and 90 percent lose it the following generation, making investors unable to create a lasting legacy.[1]  

Don’t let that data scare you – there are ways to create generational wealth that lasts well beyond your children and grandchildren.  


Start Investing and Diversify Your Assets  

Generational wealth needs to be cultivated in a way that creates generous upside potential but with a capital preservation first mindset. There are many different ways to approach that challenge. When investing in the financial markets, one of the most common ways that investors may accomplish this goal is by building a diversified investment portfolio. Too much exposure to any single stock, investment type, or sector can create unnecessary risk. While many investors know that in financial markets, diversification is critical, they may not apply that same principle to the overall mix of assets within their entire portfolio.   

Due to 2022’s inflation, geopolitical tensions, supply chain issues, etc., Wall Street saw the largest annual percentage drop for all three indices since 2008.[2] Investors seeking strategies to hedge against inflation and offset risk in their investment portfolio can look to real estate. Real estate is a reliable, tangible asset with consistent cash flow that is not directly subject to short-term market volatility. Additionally, historical real estate values have outpaced inflation; making real estate an attractive option for building long-term generational wealth.  

By investing in different types of assets, you can minimize your overall exposure to any one type of risk. The goal is to create a balanced portfolio, with growth and income-producing assets, to maximize returns while reducing risk.  



Invest in Financial Education for Your Family 

Financial literacy is the skills, knowledge, and tools that allow people to make sound financial decisions. It extends beyond just knowing your finances and includes being an active participant in financial planning, while maintaining the ability to manage emotional and psychological factors that could influence your decision-making. Many people who inherit wealth may not be educated on the importance of financial knowledge. As a result, they may delay acting in their investment portfolio out of fear of the unknown.  

Why is it important? When it comes to building generational wealth, financial literacy is key. Only 22 percent of U.S. high school students have access to personal finance courses. Additionally, a recent annual survey found that only 52 percent of U.S. adults are “financially literate,” and less than 37 percent understood “comprehending risk” (i.e., understanding uncertain financial outcomes).[3,4] 

We all have unique values, goals, and dreams that motivate us. Accessing and understanding the financial information needed to make those dreams happen can be extremely empowering. The good news is that you can start investing in your children’s and grandchildren’s financial education now. Ensure they know the basics of budgeting, savings, retirement, and investing, and give them the tools they need to protect their long-term wealth.  

Having open conversations about money and investing, including both your methodical decisions and not-so-logical decisions, can help your family learn and make better choices in the future. As an investor, it is inevitable that you will experience a loss. Rather than dismissing those losses, view them as an opportunity to educate your family to help them avoid making those same mistakes down the road. Teaching your family how to save, spend, and give will help develop financial responsibility. Involving your children in the financial planning process is critical to helping them understand the importance of small actions and their potential major impacts on future financial outcomes. 


Ashcroft Capital and Multifamily Investments 

Ashcroft Capital is headquartered in New York and has a team of real estate professionals that focus on capital preservation and wealth generation. Due to our focus and expertise, over 3,000 investors have trusted us with their capital.  

Drawing upon the experiences of our over 300 employees, our team knows how to maximize the returns on our properties, create superior living spaces for our tenants, and allow our investors to realize their financial goals. We acquire Class B apartment communities in high-growth markets across the sun belt states. All the properties we acquire have value-add characteristics that include the ability to reposition the asset through capital improvements and upgrades, renovating the interior units (one unit at a time), improving operations, decreasing expenses, and creating other revenue-generating projects. This strategy provides our investors with risk-adjusted returns with distributions that offer greater liquidity from one investment vehicle. 


Ashcroft Capital’s Real Estate Fund 

Real estate funds like the Ashcroft Value-Add Fund III (AVAF3) differ from other syndications by investing in multiple properties rather than a single deal. The fund is structured so that investments are allocated across multiple properties, to mitigate downside risk and deliver diversified sources of return. 

AVAF3 is a closed-end private placement fund for accredited investors interested in diversifying their retirement and wealth portfolios into multifamily real estate. Investors can invest in Class A and/or Class B Limited Partnership Interests. The AVAF3 is targeting 6-10 multifamily properties throughout the Sunbelt region with an anticipated hold period of 5-7 years. 

AVAF3 offers both Class A and Class B share types. An investment in Class A shares earns a 9 percent coupon, generating strong projected cash flows, while reducing risk. Upon disposition of a property in the fund portfolio, Class A shares offer limited distributions in exchange for the higher coupon rate. Class B shares earn a 7 percent coupon; however, Class B shareholders have greater overall return potential through their participation in the disposition of fund properties.  

To learn more about investing in multifamily apartments or for IRR and cash-on-cash projections, visit AVAF3.com or schedule a call with our Investor Relations Team at investorrelations@ashcroftcapital.com. 




  1. 5 Huge Lies About Generational Wealth, gobankingrates.com™. (n.d.). Retrieved February 6, 2023, from https://www.gobankingrates.com/money/wealth/lies-about-generational-wealth/
  2. Wall Street ends 2022 with biggest annual drop since 2008, reuters.com™. (n.d.). Retrieved February 3, 2023, from https://www.reuters.com/markets/us/futures-slip-last-trading-day-torrid-year-2022-12-30/
  3. NGPF’s 2022 State of Financial Education Report, ngpf.org™. (n.d.). Retrieved February 7, 2023, from https://www.ngpf.org/state-of-fin-ed-report-2021-2022/ 
  4. The 2020 TIAA Institute-GFLEC Personal Finance Index, gflec.org™. (n.d.). Retrieved February 7, 2023, from https://gflec.org/wp-content/uploads/2020/04/TIAA-Institute-GFLEC_2020-P-Fin-Index_April-2020.pdf