On this episode of Real Estate Launchpad, Richard Wilson, founder of the Family Office Club and CapitalRaising.com joins Jonathan to talk about Family Offices. A Family Office is a private, 360-degree wealth management firm serving just one or perhaps a small number of ultra-wealthy clients, helping them navigate the unique challenges created by their massive wealth. The Family Office Club advises clients on how to establish and manage these Family Offices and how to facilitate communication between these Family Offices. Richard’s CapitalRaising.com teaches people with investment opportunities the best practices for bringing them to Family Offices. This episode contains insights into how to successfully raise money from Family Offices, so be sure to listen!
Family Offices exist for wealthy clients who need a better solution than just wealth management. CPA’s and Wealth Managers are not built to find solutions for the ultra-wealthy or equipped for the type of headaches those with $7 million plus may encounter. A CPA may remind a client to keep receipts or document office space and may not be in the same location as your wealth manager, so the individual is responsible for catching mistakes. The larger the net worth, the higher and more costly mistakes are. Hiring a Family Office is playing a strong defense against these mistakes, and paying for someone to be a high-quality solution provider. A Family Office will not be stressed about the size of an account.
Family Offices see a lot of deal flow, so you need to set yourself apart. They represent informed money. Before approaching a Family Office for capital, you need to know who you are talking to. Investors looking to raise capital from Family Offices need to go into each meeting prepared and knowing what the competition is offering. They need to show how they will add value, and show how they have done this over time. Investors must think about positioning. They need to analyze and use forethought before approaching Family Offices. Richard’s Family Office Club hosts workshops to teach these things. Be sure to listen in and also check out his website for workshop information.
Richard shares several things that can make the capital raising process easier:
Family Offices have been cautiously optimistic with real estate investing. However, as the market keeps moving forward, some Family Offices have missed out on growth. This is causing them to reassess their conservative behavior. Family Offices are mostly interested in multifamily and self-storage. They are focussed on moderately aggressive investing, with tax efficient growth. Family Offices want to know a real estate advisor has a unique plan and can plan for a downturn in the market. They want to know how an advisor will add value compared to competitors.
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