My generation doesn't necessarily want to invest the way our parents invested.

[02:24]

"Uh, my thesis is: biggest wealth transfer will will, we will ever see, is currently happening and uh, I'm 39 years old. So those kind of, in my generation, I argue, don't necessarily want to invest like their parents invested."

[03:13]

"I found the wealthiest families I know that are most successful at defending and growing their wealth, focus on one or two Niche areas and get really good at doing that."

[12:28]

"One is: if you pay a broker 50% more or double their normal fee, they're probably cool to show you the deal for 90 minutes before they shoot it out to their list. Probably other people are too cheap to do that"

Full transcript

I am the senior director of Charter membership. For those of you that don't know me, I've been with the family office club for almost three years now. Can you believe that, Richard? It's been a long time. It's going by soad. Thanks, win.

Irwin's really excited for me to be his moderator today. Um, I'm very excited as well, so, awesome. Well, welcome everyone. Today we are going to hear from these six panelists uh on the how they see deals that nobody else gets to see. We're all here because we want to talk about deal flow, we want to network and mingle and we want to hear their insides, insights and insides, I guess, about what they uh invest in, how they Source those Investments and any tips and tricks that they uh have come across in their years of experience.

We, you know the average deal for us. We look for probably 50% of the return to come from current cash flow, the rest through appreciation. You know we have the ability to hold for a long time. We've hold. Some of our assets are 35, 40 years uh aging like fine wine, and some of them. We we turn rather quickly.

We focus on investing in value ad uh, multifam South of San Francisco, so we don't invest in the city and and uh, we also invest, we call it the peninsula, all the way down to San Jose. So, uh, that's our very tight Geographic Focus. We also have pivoted, uh before covid, into multi-tenant Office Buildings, again, value ad uh. We are a full service uh property management company as well, so we're we're fully vertical, but we only invest I, we only manage the properties.

We invest with our uh High net worth accredited investors. Thank you, thank you, so um, but I my hat. So one hat is I'm an individual investor. I invest, invest heavily in Venture Capital funds, I invest heavily in private Equity hedge funds and I do solo Investments as well. My thesis is very, very specific. I look for uh companies that are industry agnostic uh, but specifically are led by either women, uh, we focus on confidential and private deal flow for the NextGen investor.

Uh, my thesis is: biggest wealth transfer will will, we will ever see, is currently happening and uh, I'm 39 years old. So those kind of, in my generation, I argue, don't necessarily want to invest like their parents invested. So we want to bring winners to the table with other winners. Um, I'm bringing individuals to my firm that have had a lot of success in a specific sector in their first career.

I'm getting them licensed and then staying in their Lane, whether it be uh Sports, fashion, autonomous vehicles, Etc. See a lot of uh deal flow, not just one, 5, 10, but 50, 100 deals in a certain sector, get pattern recognition and ideally generate Alpha. So happy to be here. Awesome, thank you. So, uh, Richard Wilson, most of you know me already um investment wise.

I found the wealthiest families I know that are most successful at defending and growing their wealth, focus on one or two Niche areas and get really good at doing that. So in the operating business side, we are laser, laser focused, but about 95% of our energy into investing into multilocation profitable medical and dental practices. So we have minority equity and 24 practices now doing about 50 million a year in Revenue. We're closing on a 50% acquisition of a med spa in the next three weeks and I'm hoping to scale that up to 100 um locations as fast as we can.

On the real estate side, we do have families ask us for best and breed Real Estate Solutions. Um, internally we offer invest investor residences. Comom and the strr side, and then Motel to apartments or converting really ugly motels nobody wants into apartments that are in pretty high demand. Um, but we're also looking for best to breed real estate groups so we get to know overtime here in the club and um, the medical division is called Medical Clinic Capital.

If anyone has deal flow there or something they want to connect with us on there. Uh, Medical Clinic Capital, awesome, thank you got some uh diversity up here. I like it. Uh, Bridget, you had mentioned that you have three different hats, not including this one or excl. Yes, four, thank you. Um, how do you typically Source your, your leads?

It sounds like you've got some flexibility there. You've got a lot of resources, but do you find that one sticks out more than another? Or do you have? Uh, I am in rooms like this every single day, literally, whether it's virtual, whether it's in person. Tonight, I'm going to another networking function tonight, uh, where there'll be a stage full of startups pitching their business to us.

Um, so I Source, uh, and I've got like um. I come from Tech. I've been in tech for 25 years, just recently exited Google as a senior executive, um, and so I um I heavily Network. That's how I Source my deals. Uh, I'm very, very specific when I say thesis, I do not deviate from my thesis. It keeps me focused, it keeps me, uh, connected.

And then those who know my thesis and I, I say it in every room I'm in, uh, send me opportunities as well, um, and so I also realize that, um, there is a very big gap for women, who need investment. Right, we're underfunded. So I try my best to f find those women who are Innovative and disruptors and who are, um you know, creating solutions for problems that haven't been solved yet, and those are the companies that I invest in and those are the companies that my network invests in. So we're here, black women, women period, um, but rooms like this we need to be exposed to.

So when I'm here, I try to connect with as many women and, uh, males as possible, non- women as possible or people who identify as non- women. Uh, you know, you got to, you got to keep it PG, um, but in any case, um, but it's, it's all about relationships and um, what I learned last night at at another networking function was, uh, you need to know trust and then invest. Oh, yeah, no like trust, is that it? Whoever said that out loud?

No like trust. And so, getting over the to know someone, it takes time, absolutely so it takes longer. Someone quoted a stat last night that um generally only takes white men about seven introductions before a deal is transacted. For women, not black women, just for women period, it takes at least 50 introductions to get one. Yes, and so that's a lot.

That number is ridiculous. So, so, anyway, there's no reason for that other than not having a network, uh, where you can actually pick up the phone, make some phone calls and, uh, and get introduced to the person on your left, the person on your right, uh, the person on that table and that table and that table. That's how I Source my deals. I'm out here.

Yeah, no, thank you for being here. Uh, that we talk about that a lot, and for those of you that have been attending our events repetitively or if this, even if this is your first time attending, we talk a lot about relationships and power of proximity and and really making sure that you are putting faces to names it and Deals don't happen just straight up through email, despite the technologies that we have available to us. The networking being in person is super important, which is why we're here. So I know, irn, you've been with us for a long time.

You come to pretty much everything. Would you agree with that? You meeting in person is the right way. A lot of it is meeting in person, you know, and, and it goes for finding a deal as well as for finding an investor. It's like dating. You got to talk to people.

You got to see if you like them. Do you want to have dinner with this person? Maybe you want to play golf with them or or attend an event with them? You have to understand what you know how they think uh, and once you have a meeting of the minds, then pretty pretty much you can get someone to invest with you, you get someone to show you their private deal flow uh, especially, if you like, we Source a lot of deal throw through our professional Network being, you know uh, attorneys, accountants, uh, third party Consultants.

You know that we've had for a number of years. They know what we'll do and what we won't do, and so if something drops on their plate, we get, we get those phone calls uh. So a lot of it is relationship and it doesn't really happen overnight, but it shouldn't take 50 introductions either. That I understand that, probably because they're a little gunshot, because it's new to them.

Right, thank you. You have a very specific area Focus: how do you Source your deals? That's um exactly why we, I think, can Source deals that nobody else ever sees. Frankly, we don't buy uh property off, uh, only off Market. We don't. You know things that you may see on MLS.

You know we've seen months and months before uh, we're we're going on our 18th year and uh, we've never lost a dime, never had a capital call, and we have uh got a good reputation. So there's two ways for us in real estate, as you can imagine, you're highly networked with the brokerage community and, as a result, what happens is, especially in this area on the peninsula, a lot of the Brokers, the high-end Brokers, uh really are looking to double end a deal, meaning they want to represent both sides. I don't know how that works or why that works, but that's what they do. Uh, I think it's uh probably a bit conflict of interest, but uh, so, as a result, we'll get a phone call normally when they get that double ending.

So they want to essentially get a listing and they'll come directly with us and and, frankly, in multif, family and multi-tenant office, especially value ad, there's kind of a batting order. So you know they've got uh six or seven guys including us because they know we can perform in terms of our investment and so we'll get them that way. And then we, we have a campaign as well, direct to uh building owners. So building owners all get you know a flyer where we want to buy your building, we want to buy your apartment building or your office building.

So it's worked out well. Um, you know, for us, in that regard, those two, those two sources, and again, staying geographically focused, you know that's our small sandbox, so we want to be, uh, your menu item if you want to invest in in these two asset classes in the on the peninsula, great Jacob, yeah. So I think Life's too short to work with people that aren't winners, so I'm passionate about bringing winners to the table with other winners. So, when I look at Founders that I like to work with, rarely work with Founders, uh, that this is their first company.

So I want to find Founders that have either had failures, have shown growth, um, I work with family offices that have had successful exits, uh, yeah, just kind of outsized, uh, individuals that are also a little bit crazy. Uh, maybe a little bit more than a little bit crazy, because I think that's what you need to get to get through a hyper competitive, 8 billion population world. So, uh, yeah, some of the some of the traits I look for in my how do, how do you Source those deals? How do they just come to you?

Do you have a, a resource? Yeah, so my background is Wall Street, so I was with Goldman Sachs for four years, then I was with uh company First Trust for nine, so I have a pretty broad network of Founders. I've been an angel myself for the last uh 10 or so years. So, uh, yeah, a lot of the deals that we're working now are more Boutique, call it five to10 million Capital raises, and they're all very close personal friends or people in my close group.

So, be your close person. I need a hat. Green's my, yes. So, Richard, obviously I. I have an idea of what your resources are, uh, and I know that if anybody doesn't know this, whether or not he shares it, he's a URL nerd. He'll tell you that himself.

But that's you know. It's got a lot of websites. But, Richard, how do you uh Source your deals, sure? Uh? Well, what Jacob is saying is really true. Uh, the only only tech company we've invested in 16 years like startup tech company is because we knew the founder well and he had exited the exact same fintech model from a bank and walked out because they weren't really treating them really well.

So he started the same model in same industry, you know, same profit margins, Etc. And he exited to a billionaire 18 months later because of what you just said. So I think that's just such a strong point for people here in the room to take note of. But we've got seven different ways that we structure deals um better than we used to.

One is: if you pay a broker 50% more or double their normal fee, they're probably cool to show you the deal for 90 minutes before they shoot it out to their list. Probably other people are too cheap to do that and the deal might be way better than other deals you're used to seeing. So who cares if you pay an extra one or two%, if you're seeing the best deals first and you have 30 minutes to put your thumb up or not, uh, on that deal. Second one is to influence influencers who kind of run your space, the top CPA expo owners, you know, just um, podcast hosts, Etc.

The next one is to be part of three to five different Niche communities, like maybe one is family office club and maybe one is an association of dry cleaner owners that you know cost 10,000 or 20,000 a year to join. So only people that are serious in the business and have assets you might want to buy would be a member. Uh. The next one is to acquire strategic choke points.

Again, talk about that tomorrow afternoon. The next one is to be laser focused, like Thomas, focusing on Tech and life science. Um, makes it really clear, Bridget's Focus really clear. Would love, Bridget, for your uh female investors to be coming to our event so we can figure out how to work together on that and get them here in the room.

It's good for everybody, um. And then you know, add the most value in your industry. Add the most value as quick as you can to potential asset owners you talk to. And the final one is just run a deal origination process like identify your Strike Zone and say, okay, we want to invest in stem cell centers in Austin that are profitable.

Let's figure out what 18 exists and let's make a spreadsheet of them, their contact details, and systematically reach out and originate off Market deal flow. Whether they're looking for capital or not, if you've had an exit before in the niche and you're a a strategic investor, you can get them to get you onto their cap table if you're going to add a lot of value and grow them, whether they're actively raising or not. So those are the strategies we use.