949-392-1999
SHOW NOTES FOR EPISODE #015 – WHERE TO FIND $100 MILLION NET WORTH INVESTORS
In this episode Richard Wilson, founder of Family Office Club and author of the #1 bestselling book in the family office industry, The Single Family Office: Creating, Operating, and Managing the Investments of a Single Family Office , talks about family offices and how they can be a source of funding for your multifamily investments.
What You Will Learn
- What is a “Family Office?”
- Why high net worth individuals prefer real estate investments
- What are the three preferred types of real estate investments for family offices
- Find out how to approach family offices to support your deals
- Find out the 3 proven ways to gain access to family offices
About Our Guest
Richard C. Wilson
Richard C. Wilson helps $100M+ net worth families create and manage their single family offices and currently manages 14 clients including mandates with three billionaire families and as the CEO of a $500M+ single family office and Head of Direct Investments for another with $200M+ in assets. Richard is also the founder of the Family Office Club, the largest membership-based family office association (FamilyOffices.com), along with equity holdings in the training, single family office management (SingleFamilyOffices.com), investment conference, search, data research, physical bullion, private equity (PrivateEquity.com), food, and energy industries which do over $10M a year in combined revenue.
Through operating the Family Office Club Association Richard has created the first platform business focused on the family office industry. He has spoken at over 150 conferences in 17 countries, has the #1 bestselling book in the family office industry, The Single Family Office: Creating, Operating, and Managing the Investments of a Single Family Office and a recently released book called How to Start a Family Office: Blueprints for Setting Up Your Single Family Office. Richard has his undergrad degree from Oregon State University, M.B.A. from University of Portland, and has studied master’s level psychology through Harvard’s ALM program. Richard currently resides 10 minutes from downtown Miami on the island of Key Biscayne, Florida with his wife and two daughters.
What is a Family Office
- A more holistic full balance sheet solution for managing a person’s wealth if the person’s net worth is $100m, $400m, $2 billion
- For example, if you sell your business for $300 million, you won’t take it down to your local BofA. If you make a bad decision with what you do with that money, it could cost you $1 million. That million could have been spent on a full-time team of individuals (best quality service providers, etc.) that surround you and are dedicated to just looking out for your bets interests.
- The more money you have, the more potential problems, the more risk to your capital
- One quarter of one percent of a Family Office client’s assets
- A family’s personal holdings
How to Start a Family Office
- A family recently sold their family business for $600 million
- Try to understand family culture – when they’ve been burned
- Develop template
- Know why you’re doing it, motivation, mission
- CEO is title of person who runs the family office
- The family patriarch is 80-90% of the time involved in most decisions because most of wealth they created (1st generation)
- Checks & Balances
- Maybe they can make smaller $ decisions
- Only staffing
Smaller Offices
- Virtual family offices
- 55% have dedicated office space ($500 million up in resources)
Typical Investment Mix for Family Offices
- Most do 25% in real estate because it’s easy for them to understand and control. Apartments are most common – $1-3 million investment common. $20 million properties for billion dollar families
- Depend where they made their money (if investments, more stocks, etc.)
- Most are diversified
- Is there movement out of securities – yes
- Would rather buy small companies and grow them over publically traded companies
- Philanthropic handled by other people
Hear why Family Offices like real estate investments over other types of investments!
How Much do Family Offices Typically Invest in Real Estate Investments
- Minimum investments – $1-3 million
- Mid-sized Family Office – $3-10
- Larger FO – $20 million
- Over $100 million net worth – want more of a leadership investment role
- Certain family offices are turned off by high (over 20%)
- If you are asking too much in fees and percentages, many family offices will be turned off but if you take smaller cut and fees and prove yourself, you have more potential for a longer term relationship and better fees/cuts
How can a real estate investor, seeking partners approach family offices?
- Convey a good deal (that really is a good deal!) in one sentence
- What not to do:
- Essay-length emails
- Badgering
- Pushy
- Very local game
- Interested in properties in an area they are already familiar
Listen and find out what the 3 proven ways to reach family offices!
- Family Office Directory
- Don’t do mass mailings – set up face-to-face meetings in the local areas you are focused on – build real relationships
- Find out where they congregate locally (i.e. local charity event, political fund-raising dinner, quarterly family office club conferences
- Have them find you – position yourself as the expert in a niche area through
- White papers
- Speaking at events
- Books
Rap-it-Up
- Favorite business books
- Zero to 1 by Peter Thiel
- Mastering the Rockefeller Habits by Verne Harnish
- Most valuable web site – Loopnet.com
- Favorite App – Audible
- How someone could gain entry to Family Offices
- First identify what is unique position in your DNA/value – your niche
- Is it a geographical focus on boutique hotels
- Position yourself as the first person people would look at for your particular niche
- First identify what is unique position in your DNA/value – your niche
How to reach Richard
- familyoffices.com
- The Single Family Office by Richard C. Wilson ($.99 on Kindle/$7 paperback)
- Email: richard@wilsonholdingcompany.com
IF YOU LIKED THIS PODCAST, we would love if you would go to iTunes and Subscribe, Rate & Review our podcast. This will greatly help in sharing this podcast with others seeking to learn real estate investing as a means to achieve a successful retirement.
Check out our other podcasts at olddawgsreinetwork.com.
Get a copy of our free 3-Minute Rental Property Analyzer at olddawgsreinetwork.com.
Episode Sponsor: Meno Studio – menostudio777@gmail.com
