What Next-Gen Investors Want Differently From Real Estate

0:03This is a question of a different niche. Clearly you all are talking about accelerated returns. So in our boat, we only work with operators with 25, 30 years experience, 95 % occupancy, 10 ,000 units, and a high success record. Clearly highly regarded, highly respected. PCCP put in hundreds of millions with them. And so they are interested in bringing on LPs, a different world than the high risk and high return. And so my question to you is, especially on a, what in navigating to help these people, the owners are highly regarded and excellent operators and have made millions off of it. And yet they are welcoming LP and handing off to next generation because they don't have kids to take the next step.

1:06So I'm open to suggestions in terms of viewing, journeying with, and then participating in the handoff. We're only talking LPs 8 and 10. We're not talking 15, 20, and 25. Although they add on a profit element, and then they say here we're only going to hold 21%. You can have 70, 75%, meaning they're handing it to the next group. But you said they don't have kids. No. But then you said next gen, so I'm a little confused. No, next generation of investors and owners. Of investors and owners, okay. So I wanted to make sure. So the investors are passing it to the next gen, is what you're saying? Okay, I got it.

1:50Listen, I'll try to give it an answer. First of all, I don't consider my business high risk at all. I don't care about defaults. I have to own a property. I'll never lend on a property unless I want to own it anyway. So as far as LPs just handing something off, I don't buy it. I think if there's a carry, if there's a catch-up, whatever, then I'm sure they're out there to make money. Personally, I mean, I speak for myself. I'm not interested in investing on the LP side. I understand the methodology behind it. We lend to GP LP structures, and we understand the waterfalls. I never understood why people would give over management rights to a GP that doesn't have much skin in the game to begin with.

2:29so I mean I could go on ad nauseum about this but hopefully so it's difficult to raise that kind of how the operator deals with that transition of money and he wants to get the younger gen to invest is that right okay so next gen Richard what do you about next gen investors in general? I mean, in general, they do slant a little bit more towards like impact themes sometimes than the wealth creator. Like when you hear all this stuff about impact investing, like it's almost never the first gen wealth creator who's like older than 50. So any talk about that is like 90 % like second gen. I think that next gens, you know, oftentimes are trying to figure out like what their identity and their role is going to be within the family office and when they come to events like this sometimes people in the room kind of write them off like oh you're not the wealth creator but like they might be in charge of the family office and allocating the capital they might be the one directing the capital and the parents are really trying to take a step back and not be as involved so um i think their importance is greater than than a lot of people think in terms of like their sway within the family and getting traction i go ahead richard had a good point about uh they're very thematic investors i like to say you know so for instance you're talking about with multifamily they're really into workforce housing that's like the buzzword for anyone who's still doing multifamilies successfully is they're all pushing this theme of workforce housing so that's how you would attract if you're looking to attract that next generation of investors I'd always say you go to a first gen and they'll take an 18 % return and save the world So the next gen will take an 11 % return, but save the world is number one, right?

4:23And the biggest thing they can do is start educating, bringing them in. Because, and this is in a family office too that people don't think about, but if you have a family council and you've got somebody that's 55 years old, 300 million just came due, and then you've got a younger gen at 30 years old, right? Well, that 55-year-old is probably like, I want cash-flowing, institutional-type warehouses, right? Richard, what do you think that 30-year-old, real estate-wise, would be thinking? I mean, it probably opened to more futuristic, more new-age-type ideas. We've got a longer time horizon, typically.

5:03They haven't learned some of the lessons. They haven't lost enough money to be as cautious. They haven't seen a bad market. They haven't seen a bad market. Or prop tech. Forget that. Let's go into these technology companies, right? There's just different dynamics. Education is probably the best thing that you can do. That's why what Richard does is so important. Hi, I'm Richard C. Wilson. Our community has closed over$1 billion of transactions. We have over 16 million registered members across 100 plus LinkedIn groups. And I own billionaires.com and run Family Office Club. Over 19 years, we've hosted 300 live events.

5:40I've built 50 of our own AI tools. And between the billionaires I've interviewed, the centimillionaires who have spoken on stage, and over a thousand decamillionaires who have presented, we've found there's three things that really can build your wealth. Proximity, superintelligence, and scale. That's exactly what we provide at Family Office Club. We host 30 events a year, including five large summits for wealthy founders and investors, dozens of workshops and masterminds, including 12 artificial intelligence, laptops out, implementation workshops. So you leave with AI implemented. To learn more, please go to familyoffices.com.

6:17And I look forward to personally meeting you at our next live event. If you are a founder, raising capital, developing real estate, or you're an investor, we'd love for you to get involved in the Family Office Club. I've run this community for 18 years now. We've hosted 300 live events. We have 17 million social media group members and followers. We have the number one YouTube channel on Family Offices. We have the number one most popular podcast on Family Offices. You can learn more about us and our membership options at familyoffices.com. We have 30 in-person events planned in 2026 and another dozen events this year.

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