Many of my families are moving from G1 to G2 and looking to exit their businesses.

[02:39]

"I'm really really trying to shore up the private credit especially because a lot of my families are uh are in that position of G1 to G2 uh they're looking to exit their businesses and their portfolios require a little bit more high-grade fixed income"

[03:26]

"I would say the biggest piece of advice, and I really don't have all that much, uh, but the biggest piece of advice that I can share is is to not be afraid to say no."

[04:59]

"And I think in the family office space right now, there's a big conversation surrounding the wealth transfer that's coming from generation to generation. And I think that's where you find a lot of those opportunities"

Full transcript

Why would you ever give your money to somebody who doesn't know what they're doing as well as you do? Because you should just be doing it because there's a pretty great blueprint uh for how to fail. You can succeed in so many so many different ways. There's money around every single corner. You just know need to know where to look uh and how to look more more so.

Uh, but there's a very easy way to guarantee your failure. Not having proper security in your transactions, not um vetting your partners well enough, getting into a deal, even if it's the best deal with a shitty partner, it's it's just not going to end up well. You're not going to be taken care of. Um, and there are plenty of other mistakes you can make.

Just not doing enough research, not doing your, for example, UCCC searches. Is very easy to find um find information and it's very easy to move forward without information that you can find easily and should have found easily if you were uh if you were uh paying a little bit more attention now separately to that we are you know a multif family office um I don't come from this world I come from by education I come from the world of politics and by trade I come from the world of real estate that's how I started out as as a realtor. Um uh and there's a lot of different there's a lot of odd overlap between those two that you know I often find that a lot of people in this space in business in general kind of ignore the political side of things. But I mean and I'm not going to even ask for a show of hands because I can guarantee you every single person in this room was affected by all this nonsense ping ponging that would went back and forth about the corporate transparency act.

Uh in some way, shape or form, every single person in this room was affected. And it's it's a nightmare to try and uh bounce back and forth, but you know, those are the kinds of huge things that, you know, you may you may ignore because they're political and it's not your world, but it very much affects you. Or or we can talk about like I I had mentioned yesterday um President Trump's plan to bring back 100% bonus depreciation. That's going to be an incredible political shift that directly impacts specific parts of the real estate market that very heavily rely on that kind of property like gas stations or or car washes.

Um now in um in real estate well in for deals in general um because we are we are looking for a lot of uh private credit as well and a lot of a lot of venture. I'm really really trying to shore up the private credit especially because a lot of my families are uh are in that position of G1 to G2 uh they're looking to exit their businesses and their portfolios require a little bit more high-grade fixed income rather than um rather than appreciation focused investments. Uh although their their kids are exactly the opposite. They need a little bit more appreciation and under to understand um how difficult it can be to create wealth and add value.

Um, it it's easy to find a deal that looks great on paper, but then there's, you know, one or two small things. Maybe the partner is a little bit sketchy or maybe you can't understand the full story, but it looks great on paper and you want to go go into it anyway. I would say the biggest piece of advice, and I really don't have all that much, uh, but the biggest piece of advice that I can share is is to not be afraid to say no. Um it we're constantly tempted by by people who um who are not as serious about their business as we would like to be um and are not as knowledgeable about their business as we may potentially be.

And you know, in my opinion, it's you know, why are why are you why would you ever give your money to somebody who doesn't know what they're doing as well as you do because you should just be doing it, you know, at that point. Um, apart from that, uh, I really do enjoy, uh, Jeff Bezos's concept of of the two-way door versus the one-way door. Uh, the way he puts it, about 70% of, um, of the decisions you make are are two-way doors to where, you know, if you go through it, uh, you can backtrack. It may may be a little bit of a pain and it may cost you some money, but it's not something that's going to be destabilizing to your business if you backtrack that decision.

Uh, and he says about 30% of those decisions are one-way doors where you really can't go back. In my opinion, that's a lot more like 90% to 10%. There's there's so much uh creativity um that you can find in in odd places that can really save you from a bad situation if you recognize that you yourself are in a bad situation and you can there there are ways around it. Right.

Right. And I think in the family office space right now, there's a big conversation surrounding the wealth transfer that's coming from generation to generation. And I think that's where you find a lot of those opportunities and, you know, relating to that cause and effect and that silver wave that we're going to start to see from Gen 1 to Gen 2 or Gen 2 to Gen 3 where their interests change up. Join the Family Office Club by visiting family offices.com.

We look forward to seeing you at our next live event.