Are you looking to attract high-net worth investors for your business? If so, you have to listen to this episode with Richard C. Wilson. Richard is the founder of Centimillionaire Advisors and the Family Office Club. He works with $100M+ net worth families providing a full balance sheet solution to their wealth management needs. On this episode, he shares some of the pain points of high net worth investors, how to find the ultra-wealthy, and how to structure deals that will appeal to family offices.
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Key Market Insights
Family offices service high-net worth investors needing a full balance sheet solution
Ultra-wealthy mistakes: after liquidity event, families start spending right away based on who has access to them
Focus on what the family is best at and create their optimal lifestyle
One family had 42 car leases and they would get a lease for their friends
Tips for families: create a clear set of rules on managing family funds
Suggests a narrow focus on direct investments – opposite of what many wealth advisors suggest
Tips from the Ultra-Wealthy: What game can you play and play it better than your competition
Average investor does not have teams around them, family offices have a full team to source and vet deals
Some investors are sitting on $5MM in cash and have no investments outside of a primary residence
Credibility, context, uniqueness and compelling
Do you look like everyone else or is it compelling?
Family offices do not like to see layers of fees, misalignment
Financing fee, 1-2% management fee – has no skin in the game
Major Key: Being transparent on the equity that is being raised
You can get funded on your first deal if you have a strong story
Family office may come in on a small level on a first deal
There are family offices that service a single family and offices that service multiple families
Each client has a different risk preference and if they get comfortable with a specific sponsor and if it goes well, it can be offered to the family offices
How to meet high net worth investors: go to events targeting ultra-wealthy (family offices), be a part of a high-end community (business owner club), live where the ultra-wealthy are living, look locally on Facebook or Linkedin for family offices, who serves family offices (estate planning, dealerships, advisory group)
Most syndicators are buying B- assets and looking to produce a 17-22% IRR, but needs to be a truly unique process
Everyone is saying we’re 12-24 months from a reset and people are now tired of missing out from being too conservative
Bull’s Eye Tips:
Winning Your Market: Identify a choke point that you can own – source of research, flow of investor
Tracking Market Changes: Hosts two events each month and day to day discussions with clients
Daily Habit: Accountability call each week, meditation daily
Best Business Books:
Game Changers by Dave Asprey
Success Principles by Jack Canfield
“The best way to add value to any investor is dialing into the pain point of the investor”
“Mindset is more important than a track record”
“Everyone is saying we’re 12-24 months from a reset and people are now tired of missing out from being too conservative”
Places to Grab a Bite:
Connect with Richard:
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