Hey... leaving my current role soon to go back home and open a family office focused on CRE. Questions? Comments? Concerns? Relevant Resource: Family Office Database
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Development or Investment? Do you have experience in this sector?
Leaving a Real Estate Private Equity / Hedge Fund.
Would be primarily investment but some development.
.
There's more to this than fundraising. Just bc the LP part of the equation is handled doesn't mean anything else is a gimme
Fair enough, but fundraising is by far the most difficult part (from what I hear).
How moronic are you? What do you mean you couldn't learn from someone with family money? If he works in REPE, he's clearly not a dumbass
.
Can you elaborate on your prior experience at the REPE/HF shop? What made you feel like it was time to leave and start your own gig? What specifically do you plan on investing in on behalf of the FO?
We own a good amount of industrial properties with no debt. Our family business occupies a good amount of the space but recent increases in the rental market are making it more attractive for us to lease our owned Class A space and lease Class B/C for our own use. Additionally, we're under construction on 2 more mixed use properties. We'd like to start investing in more multifamily value add deals... that's where I come in!
My experience -- I started out working on traditional value add deals like you'd see from any large LP. However, over the last 2 years I've moved to working on securities... making it less interesting and beneficial for me. As a result, I'm headed out.
What is your age and experience level?
Age: Probably too young to be trusted Experience: ~5 years in the industry; a few more years in other front office roles.
Questions 1. Do you have a strategy or IPS laid out yet? Why multi-family as a focus?
Are you comfortable sharing what part of the country you're in currently? Looking to stay focused in this area or are you agnostic on location?
Was this something the family thought of or was it your pitch?
what's IPS stand for?
Investment policy statement
What markets will you be focusing on?
What type of financing are you targeting?
Since your properties are debt free do you plan on owning them for life?
This would get a ton of love in the real estate forum.
What type of returns are you targeting?
We've historically gotten 9-10% unlevered. Looking to continue the trend. Would even be happy with 7-8%.
Additionally, looking into possibility of opening a REIT.
Can you discuss your comp structure? If you employ other investment professionals what does their structure look like?
There's my father, uncle (my dad's brother in law), and brother. We're all equity holders.
There's also some analysts who are salaried.
Some follow up questions for you...
Favorite asset class?
Would you prefer to do pure ground up development, acquisition, rehabs, or redevelopments?
When are you going to be hiring another analyst?
Thanks for the answers. PM me if you ever need an analyst.
Depends on location of the market. Would love to be sitting on something like that with no debt though.
Who will be making the investment decisions? Are you hiring analysts? How do you analyze properties and know that they are the right fit?
What would be everyone’s role at the firm (I.e who does what on a daily basis between your dad, uncle and brother)
How much development experience do you have? Do developers have prior construction experience or will you be relying on GCs to guide you?
How much money are you raising? I thought family offices don’t take outside money?
Thanks.
Who will be making the investment decisions? Are you hiring analysts? How do you analyze properties and know that they are the right fit?
What would be everyone’s role at the firm (I.e who does what on a daily basis between your dad, uncle and brother)
How much development experience do you have? Do developers have prior construction experience or will you be relying on GCs to guide you?
How much money are you raising? I thought family offices don’t take outside money?
Thanks.
general location?
Midwest... think Chicago suburbs.
Lol at repe/hedge fund.
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