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CRE Insights Blog

A basic guideline for family offices going into direct investments

Hello, this is Richard C. Wilson, founder of The Family Office Club and Centimillionaire Advisors, LLC. I wanted to record this short video on direct investment deal flow and just provide this quick guideline that if you’re being shown a deal and it’s not the area you focus on, it’s not where your wealth is created, it’s not where you’re putting the stake in the ground, and you want to focus on that area as one of your top two to four areas of investments in the direct investment area longterm, really consider looking at 20 to 50 other deals in the space before you say yes. If you haven’t looked at that many, then you really can’t tell what’s an anomaly, what’s average, what’s expensive fees, what’s fair fees, what’s a great structure, what’s not, who’s the more classy team that you can trust who are real experts at their niche and they’re honing their craft for the long term and they’re committed, versus someone who’s fly by night, chasing the latest opportunities, not consistent, doesn’t follow up, isn’t professional, rubs you the wrong way, and isn’t very compelling and makes you lean forward. If you haven’t looked at 20 to 50 deals, you thinking something is exciting and compelling really doesn’t mean that much. This is especially helpful if you just got liquid or if you’re just establishing your single-family office, but it’s a good rule of thumb for anyone going into direct investments. Look at a lot of deals before you allocate to a single one, and it’s going to protect you from some of the bad apples and protect you from some rash decisions that are being made out of emotional excitement about the potential of a deal or pressure being put on you by the other party at the table. So I hope this was helpful. If you want to learn more, please visit our two websites, centimillionaires.com and familyoffices.com. Thank you.

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Richard Wilson

Richard Wilson

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