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CRE Insights Blog

Long-Term Committment to your Craft

Hello. This is Richard Wilson, CEO of the Family Office Club. We just got done hosting our Family Office Deal Flow Summit here in Chicago as you can see behind me. I just wanted to emphasize one point that came out at the event, which was the amount of trust that’s built when you approach something in a way that really grows trust through a example of your longterm commitment and high conviction in your investment strategy. This came out because one of our Family Office Club members went from managing $400 million, which is a lot to start with, 18 months ago to now managing $1.5 billion by doing the opposite of what everyone else does and the way that they structure their investments and structure their fees. As Dan Kennedy says, if you’re not sure what to do, look at what everyone else around you is doing and do the exact opposite. The point is that most people couldn’t operate at such a low fee model as this firm does, but because they are willing to do so and kind of work through, get into a significant size where their fee model made sense and showed people they’re very longterm focused and longterm minded. I think that’s really at the core what every investor wants. They want people who have a very high conviction of what they’re doing, so they don’t mind doing more performance-based fees or more low fees or more playing the longterm greedy game instead of the short term and medium term. That goes hand in hand with other advice at the event today, which you can see in the recorded version if you’re a charter member by logging into familyoffices.com. But, it came up many times today from investors on stage that you need to have enough skin in the game with that it’s painful if things don’t work out. You need to have enough skin in the game that you’re really incentivized to make sure things go well for the investor and many times that is not the case. To close out, basically, the message I’m trying to get across in this video is that the more that you can show investors that you are very much focused on the long term, that you’re only looking for the longterm win, and that you are aligned with them on protecting the capital and growing their investment, the better. Hopefully, there are many things you’re doing that no one in their right mind would do if they were short or medium term focused and by definition and almost subconsciously then you’re communicating to others that you are very longterm minded. This could be in your fees, your structure, how you help investors on managing downside. It could be on the content and value you create for your niche. Even creating videos like this, which I do all the time and updating our family office podcast all the time, is a sign to people that I’ve been doing this for 11 years running the Family Office Club, and I’m going to be doing it for the next couple decades. There’s no other reason to be creating all the educational content. I hope you found this video valuable. If you want to check out some of our events and free resources, please check out familyoffices.com. This is Richard Wilson, CEO of the Family Office Club. Take care.

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Richard Wilson

Richard Wilson

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