Jason Hartman welcomes Single Family Office Advisor Richard C. Wilson in episode #625. Wilson discusses exactly what a single family office is and how it can help the ultra rich.
Economic recovery is a myth
Jason opens the show discussing economic recovery. The economy hasn’t created real corporate jobs as it did in the past. Jason mentioned how the real corporate-type jobs have now been replaced with a hodgepodge of freelance and entrepreneur-type careers. The economic recovery is a myth, and something Jason’s been saying for seven years.
Will a robot take your job?
Do you find yourself in one of the jobs that can be easily outsourced to a robot? Jason speculated as to whether robotics would lead to massive unemployment. The first cuts, he predicted, would be the $15 per hour burger flippers as well as Uber and taxi drivers. Self-driving cars, such as the Tesla, are the future and will someday replace the need for drivers. Jason said it’s a great time to be alive.
Rents on the rise
Rents are going up. A Business insider article cited a Zillow forecast that predicts rents will increase, not significantly, but it will depend on location. Jason expects there will be a massive downward pressure on high-end real estate markets.
Venture Alliance Mastermind
If you’d like to join the Venture Alliance Mastermind in Dubai, you can come as a guest. Visit venturealiancemastermind.com for more information. The event will be held March 12 and 13 in Salt Lake City, Utah. Also, for those interested in the Meet the Masters home study course, visit Hartmaneducation.com for more information.
Single Family Office Management
Guest Richard C. Wilson joins Jason to discuss Single Family Office Management. Jason kicks off the discussion by asking just what single family office management is.
A family office is a holistic full balance sheet wealth management solution for individuals worth $50 million and up, Wilson explained. It is something that a wealthy person decides to set up in order to manage their wealth.
Single Family Office Management is an umbrella term. There are three terms commonly used:
single family offices
virtual family offices.
There are 14,600 ultra wealthy individuals globally worth more than $20 millon. The number of centi-millionaries are increasing every day, Wilson noted.
Single family offices can be great capital partners. There are many family offices globally that invest in different things depending on how their wealth was created.
The exact number of family offices around the world is rather secretive, however, Wilson said for sure there are 10,000 globally and growing quickly.
The concept of single family office management
The concept of single family office management has been around for many years. Wilson said it has actually been around for thousands of years. Most people in the finance world have heard the term, however the general public has yet to be familiar with the term. Wilson said we are in that in-between space of the mass public being aware of them.
What does the family office look like?
Depending on where you are in the world, most will have a CPA acting as a CIO (chief investment officer) as an who could wear many hats. Rather than operating out of the building they own and operate a business from, they are centered at other locations. Wilson said the CIO role is critical.
Single family offices help the patriach of the family, the one who created the wealth, focus on out what they’re best at. The team around them help them focus on their unique ability.
Jason noted that some may confuse the term single family office with the real estate term of single family. Although the term has nothing to do with real estate, there are family offices that do partner in real estate investments.
Partnering with the single family office
For partnering, the most popular investment is apartment buildings. Families see the apartment buildings as something that will be there for the next generation. The goal of most single family office management is to preserve for the next generation with sound investments.
Within the real estate spectrum, along with apartment buildings, self storage and office complexes are the best. Hospitality hotels are also enticing, Wilson said, because they have a kind of sexiness to them. It’s easier to relate to than an industraial property. The invstments are varied when it comes to real estate, he noted.
Jason said he would assume that family office’s, because of their wealth, generally gravitate to trophy properties. Would that be true? he asked.
Wilson said in every city you have the ultra wealthy family that is dominating the space. There’s also a segment that got after distressed assets, but a lot of them are careful as they don’t want to lose their money.
What family offices look for in investment opportunities
Family offices are looking for people who bring extraordinary deals. The wealthy have the capital in place. What’s important to them is getting into things with a good cost basis. They want to get in on things before anyone else has heard of them.
For more information
For more information on Single Family Office Management visit Richard C. Wilson’s website at Familyoffices.com. There you will find a database of over 1,500 family offices.
Wilson’s book, The Single Family Office can be found on Amazon.
More from Jason Hartman:
The Creating Wealth Team