Set up a generation-skipping trust and put assets in it while their value is low.

[02:34]

"And the best way to do something for your next generation and even the generation after that is set up generation skipping trust and put assets in there that are at a low current value so they can appreciate in there."

[03:18]

"The two things they're most considering uh in talking to me is how do I keep my family functional and my kids not spoiled? And the other is how much do I how in what ways can I do my wealth transfer without spoiling them, right?"

[00:56]

"seldom are they brought to us. Uh we have to go out and find them. We um in the mineral space we actually end up in courouses pulling lease records so that we can try and identify who the big mineral owners are that we can try and chase."

Full transcript

How do you find an exclusive offmarket or excellent top 1% opportunity? How are those brought to the mineral space? We actually end up in we end up in courouses pulling lease records so that we could try and identify who the big mineral owners are. Estate planning is very important thing and I've got some real interesting ideas on how to do that in a big way.

We educate every two weeks on alternative investing strategies cuz me as an engineer, I didn't know any of this stuff existed for years. In this episode, we'll dive deep into how family office investors source exclusive offmarket deals and structure estate planning. Let's get started. Hands here on the panel. Uh, how many of you like to co-invest? Raise your hands.

Okay, everybody on the panel. Good to know. Uh, Joe, I'm going to start with you. Uh, how do you find an exclusive offmarket or excellent top 1% opportunity? How are those brought to you? Um seldom are they brought to us.

Uh we have to go out and find them. We um in the mineral space we actually end up in we end up in courouses pulling lease records so that we can try and identify who the big mineral owners are that we can try and chase. And um some of the larger deals, one in particular that I'm thinking of was three years in the works. Um it was getting to know the the land owner, the ranch owner and working with them over really their goals, their what they wanted to do over the course of the next couple of years and eventually they wanted to sell and um it was a 20 plus million dollar deal uh that we hand delivered the check to and we'd gotten to know her real well and got immediately reinvested in Phoenix as she retired and um but we find between that and then also the businessto business opportunities um frequently It may not be someone in our network that's um that we've uh someone that we've originated the deal with, but it may be one of our partners that um uncover something that we're ready to jump on and co-invest in.

Uh same for you, David, but also a question for you both in the oil patch. Are you still able to go look up properties that are in rears on taxes or are you able to still force pool? I don't I don't think anybody lets lets their minerals get behind on taxes unless they just don't even know they own it, but or it's gone into an estate and been divided up a bunch of ways. But um yeah, there are opportunities and getting involved with a good ethical company um is really important.

And um I think the other thing I'd like to emphasize is you need to be thinking about estate planning in all your actions. And the best way to do something for your next generation and even the generation after that is set up generation skipping trust and put assets in there that are at a low current value so they can appreciate in there. Once you've made the money, it's awful hard to give it away without paying that 40% gift tax, which is real theft. But uh anyway, I love to talk to people.

I'm exhibiting in the next hall and um estate planning is a very important thing and um I've got some real interesting ideas on how to do that in a big way. Well, thanks for sharing that because I I believe 100% you're right. I work with I'm a specialist in family offices. The two things they're most considering uh in talking to me is how do I keep my family functional and my kids not spoiled?

And the other is how much do I how in what ways can I do my wealth transfer without spoiling them, right? So that's very important, right? Uh but it's also important if children are going to come into a lot of money at some point to give them a little money so they can kind of learn the hard way with the little money. Kind of like that movie Brewster's Millions.

Yes, sir. Well, the guy had to blow a bunch of money, but it was a tiny fraction of what he stood to inherit to [snorts] learn that he needed to conserve and live within his means. And that is one of the funniest Eddie Murphy movies I know. Oh, uh, Patrick, your thoughts? Well, before Yeah, I want to say I definitely would this year was the doubling down on the irrevocable trust state planning for I had two and a halfyear-old, right?

So, for the first time, I saw an actual life that's going to live past me and my wife and I and I definitely feel so great over the last year of getting all that stuff put together. So, uh working on that. Um your other question, what? Sorry, what was the other question? Well, the the question great deals except how do you source exceptional deals?

I got so excited about listening to you guys, I forgot. So, exceptional deals. We have three primary businesses that we're currently operating in through our parent and we first of all we educate every two weeks on alternative investing strategies because me as an engineer I didn't know any of this stuff existed for years when I was doing engineering. So every two weeks we do an alternative investing mastery series.

Now of the ones that we find there's actually three businesses that we have. So we have private credit commercial real estate. Now, that's incredible opportunity because those unique opportunities are high interest rates in small balance commercial real estate like 600 to 6 million. That is a completely ignored category right now where people if if the lenders are investing, they're only investing into the huge larger numbers.

Right now, we're finding incredible uh opportunities to lend at very high interest rates first position in small balance commercial real estate. Still not multif family, still not quite penciling more industrial. We're in certain markets where we're seeing a big reshoring. We're seeing a resurgence of manufacturing. We're seeing and even in those those markets, we're seeing retail. So, we're seeing incredible opportunities.

They're opportunistic lending. We're also seeing opportunistic acquisitions. I went through 2009 and 10, lost everything. Now, commercial real estate version of that right now. We're buying a lot of assets and cash and that is different. That's not through our network of known sources.

We're actually going through mass marketing and we're going direct to owner. And why? Because the brokers are still overpricing all the opportunities. And if you can't find those owners directly and set the basis for the price, figure out how eager they are to sell upfront and then potentially end up with the broker. We found we're just spinning our wheels as we've it gets overpriced and out of our budget.

So we've spent huge amounts of money and done all of our acquisitions through our acquisitions fund through direct to owner. And the other side for the litigation we do diversified litigation portfolio single event small mass tor and those opportunities are purely relational. It's a small it's a novel industry although it's been around since 1910 and it's the the the the amount of money that goes through third party litigation funding is the size of the global airline industry. All that said it's a small niche industry not many people know about.

And so my our partners have 15 years experience in both the private credit and commercial real estate and litigation finance or different groups. Virtually every single one of those opportunities comes from direct relationships or referrals from direct relationships. So there's not much secret sauce to that. Join the family office club by visiting family offices.com. We look forward to seeing you at our next live event.