This 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... interest in bringing on LPs, 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. So I'm open to suggestions in terms of viewing,
journeying with, and then participating in the handoff. We're only talking...
You know, 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, you know, 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. 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. that's what you're saying okay i got it yeah
listen i'll 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 if 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 like all the 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 GPLP 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. So, I mean, I could go on ad nauseum about this,
but hopefully I gave you some answer. It's difficult to raise that kind of money. 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 think 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 gen's... you know oftentimes they're 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 go ahead richard had a good point about uh they're very
thematic investors i like to say um you know so for instance you're talking about with multi
-family like they're really into workforce housing that that's that's like the buzzword for anyone
who's still doing multi-families uh 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. Yeah, I'd always say you go to a first gen and they'll take an 18% return and save the
world. The next gen will take an 11% return, but save the world is number one,
right? And 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. They 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.
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