Family Office Real Estate

Transcription

1 Family Office Real Estate Presented By Richard C. Wilson Sponsored by the Family Office Club & the Endowment Fund Association (EFA)

2 The Family Office Club is the largest family office association globally with more than 85,321 members including over 1,000 representatives of the largest multi-family office and single family office advisors in the world. The Family Office Club offers growth capital access to private businesses, a training and certification program, a family office database, and quarterly events in top financial cities around the world for family office summits and workshops. For membership options or information on our conferences or family office database please visit: call (212) , or us at Team@FamilyOffices.com For Growth Capital Funding or Selling Your Firm please call (503) or me directly at Richard@BillionaireFamilyOffice.com

3 Holdings: Over $10M in Revenue, 30+ Employees, 90 Oil Wells, $400M AUM Family Office Recruiting Bullion Management $400M AUM Oil & Gas Syndicate, LLC FinanceTraining.com & BusinessTraining.com Over 6,000 Training Customers Investor Data Solutions

4 Residential Real Estate Residential real estate refers to properties that are used as residences, rather than for commercial or business purposes. Residential real estate is typically separated by its structure and occupants. The two main categories are multi-family and single-family residential. Single Family Residential Multifamily Residential Commercial Real Estate Industrial Real Estate

5 Single Family Residential What is single family residential real estate? This is a type of property that is created for a single occupant. Typically, if an institutional investor or family office is investing in single family residential, they are buying multiple homes or a portfolio of this type of real estate.

6 Multifamily Residential What is multifamily residential real estate? In contrast to single family real estate, multifamily real estate is built for multiple-unit occupancy. An apartment is an example of multifamily real estate, where there are many occupants living in the same building in different housing units.

7 Commercial Real Estate What is commercial real estate? Commercial real estate refers to those real estate properties that are used by businesses. While individuals and families are the typical tenants of residential real estate properties, businesses occupy commercial properties.

8 Industrial Real Estate What is industrial real estate? The last type of real estate to cover here is industrial real estate. Industrial properties are used for manufacturing, production, assembly, storage, and related activities. Some large institutional investors own industrial properties and lease the property (usually under long-term agreements) to businesses that will use it for manufacturing and production.

9 Real Estate Investment Structures Real Estate Investment Trusts (REITs) Real Estate Investment Firm Private Real Estate Funds Private Equity Real Estate Funds Direct Individual Purchase

10 Family Office Benchmarking Survey The Family Office Benchmarking Survey Nearly 200 Family Offices Surveyed High Majority of Family Offices Allocate At Least a Portion of Their Capital Under Management to Real Estate and Hard Assets. 75.9% of respondents reported an allocation of greater than 1% to real estate and hard assets. The average family office allocation to real estate was 18%, including dozens of respondents that reported zero allocation to the asset class. Among those respondents who did invest at least 1% to real estate and hard assets, the average percentage allocated was significantly higher at 26.85%. The Family Office Benchmarking Survey, conducted by The Family Office Club

11 Key Considerations for Family Offices Investing in Real Estate Diversification Operating Cash Flow Long-Term Appreciation Less Volatile Asset Class Direct Control Inflation Hedge Limited Downside

12 Diversification

13 Operating Cash Flow

14 Long Term Appreciation

15 Less Volatile Asset Class The Volatility Index (VIX) has become a highly followed indicator of volatility and as you can see in the chart below, the VIX went through a remarkable period of activity from 2007 to Volatility S&P 500 (^VIX) Index from the Chicago Board Options Exchange via Yahoo! Finance, as of 3:31pm EDT, July 17, artstacking":true}

16 Direct Control

17 Inflation Hedge

18 Limited Downside

19 Unique Family Office Real Estate Assets Hotels and Real Estate with Business Component Apartments and Multifamily Housing Trophy Assets and Cross-Purpose Properties

20 Hotels and Operating Businesses

21 Apartments and Multifamily Housing

22 Trophy Assets and Cross-Purpose Properties

23 Mistakes Family Offices Make in Real Estate Investing Ignoring Tax Consequences Running Before You Walk Lack of Diversification

24 Ignoring Tax Consequences

25 Running Before You Walk

26 Lack of Diversification

27 Disclaimer

28 The Family Office Club is the largest family office association globally with more than 85,321 members including over 1,000 representatives of the largest multi-family office and single family office advisors in the world. The Family Office Club offers growth capital access to private businesses, a training and certification program, a family office database, and quarterly events in top financial cities around the world for family office summits and workshops. For membership options or information on our conferences or family office database please visit: call (212) , or us at Team@FamilyOffices.com For Growth Capital Funding or Selling Your Firm please call (503) or me directly at Richard@BillionaireFamilyOffice.com

29 Holdings: Over $10M in Revenue, 30+ Employees, 90 Oil Wells, $400M AUM Family Office Recruiting Bullion Management $400M AUM Oil & Gas Syndicate, LLC FinanceTraining.com & BusinessTraining.com Over 6,000 Training Customers Investor Data Solutions

30 Connect Directly Richard C. Wilson CEO/Founder Wilson Holding Company Direct Line: (503) Harbor Drive Suite #76 Key Biscayne, FL Our Offices Key Biscayne, FL New York, NY Sao Paulo, Brazil Portland, OR