From 2000 to 2018, Scott was a professor of Law at the University of Chicago where he focused on Bargaining, Dispute Resolution, Translational Law, and the complexities of multigenerational family enterprises. Scott speaks regularly on Family Offices, Private Trust companies as well as Intergenerational Leadership while also maintaining an active website.

Scott is a G2 family member. He is Sam Zell's son-in-law, having married Sam's eldest daughter.

Standout Quotes:

• "Business works on short wavelengths and family works on very long wavelengths" - [Peter Evans, Scott]
• "What does it mean to try and help family members really develop and really take ownership, so they can figure out how to deploy what they have?" - [Scott]
• "There are many different kinds of wealth… you probably aren't put on the earth to grow the financial capital, there's lots of professionals who can help you do that" - [Scott]
• "Too often, the implicit message sent to family members is 'this system is really here to steward the money" - [Scott]
• “Families rarely fail for taking too much risk, they fail for taking too little risk” - [Scott]
• "My goal is to create a family-focused office, not a family office, and a trusted company, not a Trust company" - [Scott]
• "If you want to succeed you have to have a family that understands what you're doing" - [Scott]

Key Takeaways:

• Scott is the President of Chai Trust Company, LLC, the private trust company that serves as the family office for Sam Zell and his family. Equity Group Investments, a division of Chai trust, provides investment management services on its behalf. From 2000 to 2018, Scott was a professor of Law at the University of Chicago where he focused on Bargaining, Dispute Resolution, Translational Law, and the complexities of multigenerational family enterprises. He speaks on Family Offices, Private Trust companies as well as Intergenerational Leadership while also maintaining his active website. Scott is a G2 family member, as he is Sam Zell's son-in-law.
• Scott got married to Sam's older daughter 20 years ago while he was already teaching as a Law professor. Since then he got increasingly curious about family enterprises till he fully transitioned into working in the family enterprise. After a few months of knowing each other, they started dating but Scott had no idea about her family wealth till she opened up about it.
• About Sam Zell: Sam is a serial entrepreneur, who first built a business in Real Estate, following which he turned to distressed Corporate Investing in the 80s, and then in the 90s, he created some of the largest REITs in the US today. He has continued to work on REITs and corporate investing since then. He has done several businesses over the years. Sam is also known for his straight talk, always making his stand clear in any discussion. He is also very astute and broad in his thinking.
• As a Law professor, Scott worked on conflict intervention with corporations all over the world. When he started having kids, he got curious about how the family wealth could be managed productively for the family, especially for the kids. Sam encouraged him to work on it. Some authors that stood out in Scott's study were Jay Hughes and John Davis.
• Scott describes the family structure; at the time Scott joined the family, Sam was 59 years, his 3 children were in their 30s, and as of now, there are 9 grandchildren. There was a form of governance structure, a board with his 3 children which wasn't functional as Sam made most decisions. However, now there has been a need to rebuild the structure as the company has evolved and this has been a huge part of Scott's focus since he moved full-time into the family enterprise. He has had to put in a lot of work to fully understand how the family enterprise functions; to make things change in a family system that often moves very slowly, you have to know where you're going. It involves a combination of urgency and patience, while thinking long-term, steps need to be taken early and consistently. Most of the family members are not employees, some of them are on the board. There is one board with both independent and family directors.
• The business continues to be eclectic, investing across all kinds of sectors, especially with the benefit of permanent long-term capital. At the same time, complex actions and decisions can be taken quickly. Also, family learning and development are being built as the kids grow to become adults.
• In the inflationary period currently, the business finds smaller companies that need capital and expertise to grow to the next level; companies that would rather grow their equity than sell to a PE company. These companies are great partners for the business since their interests are already aligned to grow the equity.
• While most families would rather have more joy over more money, the reality is that many family members Scott has met around the world don't have that much joy or self-possessed ability to do things in the world. They often feel enmeshed in a family structure they have little control over. This is not good for the family or the external world that could be benefitting from the good such families could accomplish.
• Laying the foundation for the next generation practically, Scott uses some rules. The first is based on the 5 Capitals; Not everyone is supposed to grow financial capital but they can add to the overall well-being of the family by building on the other forms of capital. Unfortunately, the experience in most families is that stewarding the money is the main goal, which is an implicit frame that must be dissolved. The second one is that each family member should participate meaningfully in every learning experience. Doing this means creating activities or agendas that are not solely about financial capital or the enterprise, although as the kids get older they get interested in the business itself.
• To assess how well you're building human capital, score how often you were talking about money over the last few years in your family meeting. Most times it forms a huge percentage of those meetings, but in a setting where money isn't the focus, there is a push to find other topics that can help people open up. Scott's family has started experimenting with these kinds of meetings interspersed with other activities.
• These kinds of meetings expose several overlapping purposes, help family members connect, offer a chance for content transfer, and contribute to self-development and self-growth. Different topics are often discussed and it becomes obvious how they are related. Listeners are encouraged to check Scott's curriculum diagram on his website.
• There is often a dichotomy between responsible stewards and lazy inheritors, however, managing inherited wealth can be complicated. The general goal is to cultivate engaged owners and integrate financial capital into their lives productively, but there is no concrete formula on how to do it.
• Most family offices should just be Money offices because all their time is focused on financial capital and legal risk such that the family itself is secondary. On the other hand, a family-focused office is there to grow the family's human capital as much as the financial capital.
• Trust companies around the world have become ubiquitous in wealthy families although they often don't have much life in them. However, a trusted company is a part of the family ecosystem which goes beyond managing money to a level of trust-building with the family. That forms the basis of how Scott decides on whether or not progress is being made; 'what is the level of trust in the system?'. Not to downplay the role of financial investment, but there has to be synergy within the system.
• Over the long term, families rarely fail for taking too much risk, they fail for taking too little risk. They focus so much on preservation because they are afraid of taking risks, and they wither in the end. Sam Zell still takes as much risk as he used to, not as a gamble but with a critical assessment of each situation. It is important to preserve the investment company with its risk-taking culture, and at the same time grow a family that can continue such activity over time.
• The family enterprise avoids governing by committee, especially on the investment side, so as to move quickly. Having family members behind an entity is not a bad idea but there's no point in having many family members making every investment decision. In Scott's family enterprise, this bureaucracy is avoided by ensuring decisions are narrowed down to the exact professionals. Other bigger family questions can be discussed by the family as a whole. Mike's family employs Adhocracy which encourages a culture to challenge the slow slide into bureaucracy.
• The team behind the family enterprises consists of about 85 people and functions as one entity that is the trust company, the family office, and the investment management company. There are investment professionals, lawyers, a family office and operations group, and accountants. All of these are interdependent. The company is mostly focused in the US but there are also real estate investments in other countries.
• As an outsider joining the family, it is easy to simply be a critic which will result in pushback from the family. From the onset, Scott acted from a place of love for the family and was concerned with how to continue to build productivity within the family. He intentionally took time to study the family business all the while continuing his profession as a Law professor. He advises inlaws to keep their jobs for as long as possible till they are sure they can add value to the family enterprise. He also understands that being an inlaw comes with restrictions from certain roles, but rather than get overly perturbed about it, he focuses on the ways to be helpful in the family.
• Scott has a background in communication, mediation, and negotiation which has been pivotal in building consensus in the family business. Ultimately, there is no playbook to navigate the complexities in a family enterprise.
• A typical day in Scott's life involves some time spent on investments, working with boards or committees, family learning and development, as well as time spent on management. He has come to understand that his job is to get a grasp of the system as a whole; Sam explained to him that it will change from obligation to opportunity.
• There are a few family heirlooms and the family has also documented some of its history like the story of Sam's family leaving Poland for the US. They do this mostly by putting together short films. It also serves as a way to communicate family values; Sam has always used art to communicate.
• Scott's letter to his kids: We have the capacity as humans to grow into something greater, more awake, and more alive than we are now, into a different kind of existence. This is the uniqueness of being human; the constant evolution makes life wonderful.

Episode Timeline:
[00:50] Meet today's guest, Scott Peppet.
[02:00] Scott's relationship with Sam Zell.
[04:54] How would you describe Sam Zell?
[09:18] Did you develop an interest in how family enterprises function before or after meeting the Zell family?
[12:35] How complex was the family when you joined?
[16:44] Did you have to contend with people with multiple hats in the family business?
[19:04] What does the office look like today?
[21:40] Is there any particular industry that has growing potential now as regards investment?
[24:40] How do you plan to raise the next generation in the family enterprise?
[35:17] Going beyond stewards' first inheritors.
[37:35] Creating a family-focused office and a trusted Company.
[42:10] How do you manage risk in the family ecosystem?
[44:37] How do you fight bureaucracy as the office gets bigger?
[49:05] How big is the family enterprise team?
[51:50] What was it like joining the family and navigating the complexities of a family enterprise?
[55:20] How helpful was your career in Law and conflict resolution in the family business?
[56:55] A day in the life of the President of Chai Trust.
[01:00:50] Is the family intentional about keeping things for historical sake?
[01:05:02] Scott's letter to his kids

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Scott Peppet.

Sponsored By:

• The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations.

Links:

• Scott Peppet's website — Shifting from Obligation to Opportunity - Helping family members integrate and deploy their resources for their own and the world’s benefit.
• Sam Zell - Personal Website
• EGI - Equity Group Investments
• Forbes - Sam Zell

In addition, he has written numerous articles on family governance and wealth preservation and a series of Reflections which can be found on his website jamesehughes.com.

He was the founder of a law partnership in New York City specializing in the representation of private clients throughout the world and is now retired from the active practice of law. Mr. Hughes was a partner of the law firms of Coudert Brothers and Jones Day.

Standout Quotes:

• "The first asset a family owns is its spiritual capital; if it doesn't have it, it better develop it" - [Jay Hughes]
• "If we're learning together and we're sharing what we learn, guess what? we're likely to make better joint decisions" - [Jay Hughes]
• "A family that's nothing but quantitative capital is toast" - [Jay Hughes]
• "You don't have entitled children and you will know how much is enough if you're concentrating on growing your qualitative capitals" - [Jay Hughes]
• "The two great obstacles to adjustment for a human being are sex and money; money is the worst of all because no nice person will speak of it" - [Jay Hughes]
• "Every family has ghosts" - [Jay Hughes]
• "Almost always, the plan that they have for transition...is a liability" - [Jay Hughes]
• "Way too much time I think is spent on saying we need to be resilient, that's good but the real question is we need to be enduring" - [Jay Hughes]
• "There's no such thing as financial resources, there are only things that are the representation of someone else's dream; anybody who doesn't get that right just misses the problem of the recipient" - [Jay Hughes]
• "It astonishes me, Mike, that many families with huge resources have never studied the fact that human beings don't learn the same way" - [Jay Hughes]
• "You don't just start; you start by building up those cells are going to make up the team on the journey" - [Jay Hughes]
• "Storytelling is incredibly important to discover our history" - [Jay Hughes]

Key Takeaways:

• Jay's book "Family Wealth" was a huge inspiration over a decade ago for Mike's interest in the concept of Family Business.
• After a major midlife crisis, Jay realized that his work in the law had a major flaw being that he was the only person who could use the structures he was creating for clients. He understood that the responsibility of a professional is to make clients more capable and liberate them but he had made them less capable. He started focusing more on ideas to make families more independent and also shared these ideas. Jay started to shift away from legal structures which were focused more on the 'How?' questions, and move towards the 'Why?' questions which had more impact on families. He also spoke publicly on different platforms about it and the message was well-received, encouraging him to start his book.
• With the clients however this approach was challenging, but Jay understood that if he simply did what clients asked, it would not help them achieve their goals. He learned to wait for clients to gradually open up to the approach. It had also become needful for Jay to have a beginner's mind with this new approach, not assuming he had all the answers as usual but showing concern and the desire to help families.
• Wealth comes from the Anglo-Saxon term "Weol" which means "well-being"; Financial capital is a form of wealth but it is not wealth. In trying to figure out the assets of a family to understand them better, a Balance Sheet has proved to be a humane tool.
• Using this tool, there are 4 qualitative forms of capital; the first is Spiritual Capital. This refers to a common purpose where every member of the family by affinity seeks to enhance the other's journey of happiness. The next is Social Capital; can you make really good joint decisions together over a long period of time? To make good joint decisions, there has to be Intellectual Capital, meaning the family has to be a learning system where what is learned is shared. Another form of capital is Thriving Human Capital which is followed by the only quantitative capital; Financial Capital. Financial capital is the engine that grows the others and does not simply function as accumulated wealth. It is critical to understand that the qualitative forms of capital must always be kept in focus above the financial capital that is meant to support them; a family that simply focuses on putting financial capital into consideration is not likely to succeed together.
• There are now assessment organisms for a family that is thoughtful to annually assess the states of its capital. Sigmond Freud in his work realized that the most adjusted or happiest people were those who learned to love and work as a vocation, not labor. The vocation is often a dream which takes a while to manifest and forms the stories about how the aspiration of that dream inspires people to perspire towards achieving it. When parents ask their children more about their aspiration rather than debunking it, the kids realize how inspiring it is to them and if they can perspire towards it.
• The Ghost Liability on a Family's Balance Sheet: As much as the balance sheet shows the assets, it also shows the liabilities, and one of the liability questions is "What's our big obstacle?". When looking at the internal obstacles, there is a high tendency to assume that the people in the room are the obstacle but it is pivotal to note that these aren't the only people in the room. Every family has ghosts which may be good ones brought up in stories or the "Hungry Ghosts" whose goals were unfulfilled and have lingering problems. Other kinds of ghosts are stories that are untrue but are told as if they are true. Surprisingly, another form of ghost is the plan for the transition itself and preexisting family structures which are often a liability. This is particularly because the transition plan would not have been able to consider people in the future who would later be constrained by it; in other words, usually, the plan is too small. To fix the problem, the old constraining plan must be shed, creating room for fragility and risk to form a new larger plan which will be used until it becomes too small for another generation. The qualitative capitals are groomed and grown in this process such that the new larger plan can accommodate growing those capitals. All the ghosts must be noticed and addressed accordingly so they don't cause problems in family transition.
• Inevitably, beneficiaries will at some point realize that they're playing a role they didn't sign up for, and this will be a huge reveal that will hit them like a meteor. When this happens, parents need to be extremely caring and deeply understanding. The question now becomes "is the meteor a gift or a transfer?"; because a transfer is easy but gifts come with love and are very hard to make. The parents and other professionals have to work hard to ensure this comes across as a gift rather than a meteor of obligations.
• Despite this, the burden that comes with it cannot be ignored and must still be recognized with love. The key is for the kids to understand even from childhood that the purpose is to grow themselves; preparing early for this revelation increases the odds of a successful outcome. It should be noted that it can be very disastrous to justify this burden by saying "By the way, you never have to work" as if it is handled poorly this meteor could lead to some form of post-traumatic shock. Hence the people who do well are those who take time to explore it and grow because what is being received is not just money but the consequences of someone else's dream, and the goal is to use it to aspire to achieve the dreams of the recipient. Again, it is emphasized that this gift should be a consequence of magnanimity given with love to the recipient and the hope that it helps them find their happiness, anything else is a transfer that comes with ambition and expectations which may have a poor outcome.
• A starting point in this approach of a successful family enterprise journey is for families to understand the different ways by which members learn, knowing that a thriving human capital defines Intellectual Capital. This also applies to trustees. Working on this helps the family identify whose skill is needed at different points in time. It also helps to disseminate information for joint decision-making in ways that are best absorbed by individual family members. Another very useful tool is Enneagrams; they help understand how different personality types determine how individual family members view situations or react. The aim of this phase is to properly prepare by equipping the family before starting the journey.
• Storytelling for families isn't simply for the joy of the story; it helps understand time. A good way to foster storytelling is to have reunions where each person is asked "who is the oldest person you knew and what did they tell you about somebody older?". This also applies to those married into the family and helps them weave into the family.
• Jay's letter to his kids; that they are loved and he would ask for their forgiveness.

Episode Timeline:

• [00:51] Meet today's guest, Jay Hughes Jnr.
• [03:10] How Jay's book 'Family Wealth' came about.
• [06:49] How did the families receive your approach of asking the "why?" questions?
• [15:20] Defining Wealth and the different forms of capital.
  
• [23:21] Is there a measuring stick for success in qualitative capital?
• [32:15] The Ghost Liability on a Family's Balance Sheet.
• [43:41] What is the most appropriate way to prepare beneficiaries and include them in the plan?
• [58:10] How does a family start this journey?
• [01:08:20] Jay's View on Generational Story-telling.
• [01:16:44] Jay's letter to his kids

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Jay Hughes.

Sponsored By:

• The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations.

Links:

• Wise Counsel Research Inc — Mr. Hughes is a current active Fellow of Wise Counsel Research Foundation a Boston based think tank providing qualitative advice to families who seek to avoid the shirt sleeves proverb and to help their families flourish.
• Families Of Affinity — James (Jay) E. Hughes, Jr. is the author of the acclaimed classic Family Wealth and Family: The Compact Among Generations, and the co-author of The Cycle of the Gift: Family Wealth and Wisdom.
• Family: The Compact Among Generations: James E. Hughes Jr.: 9781576600245: Amazon.com: Books — The successor volume—and intellectual prequel—to Family Wealth Why do some families thrive for generations? What accounts for the sad deterioration that other families experience? This book builds on the now widely accepted practices offered in Hughes's signature work Family Wealth and offers families the professionals who serve them a view of his panoramic insights into what makes families flourish and fail. It lays out the basis for the vision of family governance the author has developed through his work and research. His advice addressed not only what to do but how to think about the complex issues of family governance, growth and stability, and the ongoing challenge of nurturing the happiness of each family member.
• Family Wealth: Keeping It in the Family - How Family Members and Their Advisers Preserve Human, Intellectual, and Financial Assets for Generations: Hughes, James E. — The landmark book that changed the way exceptional families think about their heritage, their wealth, and their legacy to future generations--now revised and expanded.

Tiho is a Global Citizen & Investor, and today runs the multifamily office, The Atlas Investor on behalf of his family and other ultra high net worth families and individuals.

I've been fortunate to build a friendship with Tiho since connecting last year and always enjoy our multi-hour conversations about the state of the world, investment opportunities and challenging each other to see things from different perspectives. Tiho has a mind like no other person I've met and it's a privilege to listen and learn to him whenever I'm given the opportunity.

To hear Tiho's first appearance on the podcast, please visit: Tiho Brkan – Global Deal Flow for Family Office Investors.

Standout Quotes:

• "Is Cash going to be King or is cash going to be trash?" - [Tiho]
• "While it's easy to make money today and everything seems to be working, the question for very smart investors is to anticipate what's around the corner" - [Tiho]
• "If you think about a Real Estate cycle, you have 4 stages; Early-stage, mid-cycle, late-stage, and downturn... in Early-stage, you want to be in equity as much as possible" - [Tiho]
• "We don't do deals with any developer that doesn't have more than one exit strategy" - [Tiho]
• "If a senior lender is doing 37 million, talk to them, ask them about the due diligence because they're putting far more money than you are and they've done it all" - [Tiho]
• "The way that you diversify your portfolio, you can also diversify your life" - [Tiho]
• "Stick around very experienced people who have been around for a long time, who have survived the cycles... Stick with a talented group of people who have a low personnel turnover" - [Tiho]
• "Negotiate... Negotiate... Negotiate" - [Tiho]

Key Takeaways:

• Mike's previous episode with Tiho Brkan is one of the most downloaded episodes, and by popular demand, he had to bring him for a 2nd episode.
• Tiho shares that a lot of investors in this period want to make a lot of money as quickly as possible, as this time is not very suitable for long-term investment.
• He explains the reasons why this recession has been the worst in a long time, but this does not reflect in some assets and certain locations.
• In normal valuation, reprisals happen where you hold cash which gives you optionality and the ability to be selective, but where money supply around the world is increasing at a rapid speed, is cash going to be King or is cash going to be trash?
• Tiho explains that as a contrarian investor, you ride a certain wave until valuations become extreme for you, understanding that high valuations today entail future disappointing returns and so rather, you go and look for relative value elsewhere.
• Family offices don't have to be restricted to one type of asset, they have an 'Open Mandate' and Tiho describes the various opportunities available for family offices. Most investors are asking, 'how much money can I make by next Monday?' while he is asking 'How do we only lose 20% rather than 50% in the upcoming downturn?'
• The capital stack' and 'Mezzanine debt': There are 3 Real Estate strategies which are Core Real Estate, Value add Real Estate or Opportunistic Real Estate. Mezzanine debt is most commonly a strategy seen in opportunistic Real Estate investment. Mezzanine debt exposure is the most versatile in all 4 stages of the Real-estate cycle(early, mid, late, and downturn). With Mezzanine debt, you can get up to 15% returns per annum.
• Tiho's due diligence process before investing: First, the deal must be 'shovel ready' meaning construction starts immediately. Next, note the purpose or theme and planning of the project, location of the project, the track record of the borrower, feasibility studies, the general contractor or quantity surveyor, Securities, and the Exit Strategy.
• What is the Monitoring process? This involves Weekly and fortnightly communication to get updates on the project. it may also involve site visits by you or a Real Estate expert, and construction status updates.
• Discussing Residence Planning perspective: What is the purpose that we're trying to accomplish here?
• The OECD tax model: This is divided into 4 segments of how income is taxed. First is the "No Income Tax", second is "Territorial Tax". "Residence-based Taxation" is third. Last is "Citizenship Based Taxation".
• An important investing lesson: Stick around very experienced people who have been around for a long time, who have survived the cycles. Stick with a talented group of people who have a low personnel turnover.
• Everything is negotiable in the world of finance.

Episode Timeline:

• [00:50] Introducing 2nd-time guest "Tiho Brkan", by popular demand.
• [02:30] From your perspective, what have you seen evolve over the last few months from this pandemic?
• [09:03] Are Contrarian investors nowadays taking advantage of the increased supply of money or sitting on their hands?
• [13:52] Discussing the impact of the increase in money supply on preferences regarding the duration of family investments.
• [22:38] 'The Capital Stack' and 'Mezzanine debt' in Real Estate projects.
• [35:03] Tiho describes in critical detail, his due diligence process before investing in a deal.
• [46:00] The 'Monitoring Process'
• [52:50] Are there advantages to the double taxation agreement in a cross-border environment that investors should be thinking about?
• [57:26] The OECD tax model
• [01:05:10] An investing lesson to his kids

For more episodes go to
BusinessOfFamily.net

Sign up for The Business of Family Newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Tiho Brkan.

Sponsored By:

• The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations.

Links:

• The Atlas Investor — Changing the way investors diversify into alternative assets
• Tiho Brkan (@TihoBrkan) / Twitter

Standout Quotes:

• "Like most forms of financial planning, the sooner you plan ahead, the much easier it is to implement and follow through" - [Mike Boyd]
• "Even if the family is risk-averse, I think it is really critical for them to understand that the risk of doing nothing may still be higher than the risk of doing something if they plan to keep the assets" – [Jeff Gould]
• "I think many families need to stay nimble in the future and really adjust for change" – [Jeff Gould]
• "Wealth and wealth transfer doesn't always lead to happiness, in fact in many cases it leads to conflict and challenges and strife among family members, so we want to try to shift that conversation, and that takes effort and planning" – [Jeff Gould]
• "Life is generally empty and meaningless, and we have the ability to establish positive and productive meaning in the midst of a world in constant transition" – [Jeff Gould]

Key Takeaways:

• The ideal scenario would be to involve Jeff early in planning for the transition but the reality is that he is engaged much later when things need to move quickly.
• There is a unique skill set that is needed to be a trusted adviser to help the family understand what they have in regards to Real Estate, and develop a plan with that Real Estate called a "Shared Asset Ownership plan" that considers the variables of the next generation.
• The 3 phased process includes Discovery, Planning, and Implementation.
• Addressing the issue of Deferred Maintenance; the 'Do Nothing Scenario' and the 'Do Something Scenario'
• 5 Transition Strategies in Real Estate planning: Communication and Education, Conflict Resolution and Accepting differences, Rediscovering your commercial Real Estate portfolio, Developing a mindful asset transition plan, and Implementing the plan and adjusting for change
• Jeff's advice to Real estate entrepreneurs: Creating your estate plan and developing a shared asset ownership plan that aligns with the next generation.
• Jeff explains that he helps the family understand that it is a fortunate situation to be carrying on and stewarding the transition of the assets rather than focusing on the personal value of the asset to each family member.
• Be respectful to everyone you encounter.

Episode Timeline:

• [00:49] Jeff Gould and his professional background
• [06:06] Do you usually get called in at the time of a transition event in a family or ahead of that time to plan a healthy transition?
• [08:37] Jeff gives a general picture of the different categories of clients he works with.
• [11:12] What are the particular challenges with the real estate space that create the need for Jeff's specialty, to steward assets in family transition rather than a generic accountant or financial planner?
• [16:51] Jeff describes the 3 phased process of his work with families
• [24:00] Addressing Deferred Maintenance
• [30:50] What would you say is the appetite for innovation in Real Estate?
• [35:06] 5 transition strategies in Real Estate planning
• [39:44] What advice would you give to a founding generation or Real Estate entrepreneur to best prepare themselves to have a great plan in place?
• [43:24] Do you work with any families that are multigenerational into the 3rd, 4th, or 5th generations?
• [49:38] From Jeff to his kids

*For more episodes go to *
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Jeff Gould.

Sponsored By:

• The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations.

Links:

• Lineage Asset Advisors — Lineage Asset Advisors was founded to help multi-generational families solve the unique issues that arise when transitioning their real estate portfolios from one generation to the next. For over thirteen years, LAA has worked directly with families and their estate planning teams to develop roadmaps for successful commercial real estate generational transitions.
• Jeff Gould — Jeff is Principal and Founder of Lineage Asset Advisors which is a consulting, asset management and transaction advisory firm based in Los Angeles. Jeff consults with multi-generational families, family offices, and developers that own and operate commercial real estate to develop customized succession plans with their properties from generation to generation.

In his new book DISRUPTIVE SUCCESSOR, Jonathan offers a proven framework and playbook for unwinding this knot, scaling up your business or planning your exit.

Standout Quotes:

• "Perhaps all multi-generational businesses should have a family constitution, while we're naming secretaries and treasurers... why not name a historian?" – [Jonathan Goldhill]
• "There's no evil to money... it's the absence of instilling good values as to what the significance of that money means" – [Jonathan Goldhill]
• "There's a requirement of the older generation that if they're going to leave money to a younger generation that they provide some guardrails around it" – [Jonathan Goldhill]
• 96% of all business in the US are under a million dollars in revenue, and 64% of the GDP in the US is coming from family businesses. – [Jonathan Goldhill]
• "It takes time for one generation to let go and release and enjoy what they've built, and trust the next generation to grow it bigger and do it safely" – [Jonathan Goldhill]
• "I'm not in the business of family coaching, I'm in the families doing business coaching" – [Jonathan Goldhill]
• The hardest part I think of running businesses is managing the people and getting the right people in your company. – [Jonathan Goldhill]
• "There's a time for family, a time for business, and then there's time for the family business or the business of family where they overlap in between" – [Mike Boyd]
• "Life is hard work and if you're not working on yourself then nobody else is going to" – [Jonathan Goldhill]

Key Takeaways:

• One of the downsides of being wealthy is that wealthy people can be very busy at the expense of spending time with children
• Jonathan emphasizes the importance of a family business archive as he explains he does not know exactly how his grandfather's family business was shut down.
• The blessing and curse of setting up a trust fund: there's lots of misinterpretation of younger generations when they inherit that wealth
• There's a requirement of the older generation that if they're going to leave money to a younger generation that they provide some guardrails around it.
• Jonathan explains that there is a generational gap with unspoken conversations between generations, and the families he knows had the best transitions communicated as peers.
• Business coaching is not about hitting a mass number of people, it's about the business of the family.
• If you're not having important conversations, then you're not building a healthy business.
• Hard work isn't always in the form of just long hours and physical toil, it comes from commitment and dedication to improve oneself and be better.

Episode Timeline:

• [00:48] Introducing Jonathan Goldhill who shares some history of his grandfather's family business.
• [08:09] How exactly did the business end?
• [11:57] Jonathan describes one of his attempts at starting a new business and the challenges that effectively impeded the success of the business
• [16:08] The impact of wealth on Jonathan growing up
• [21:40] How did you take this formative experience from your own family to help other business families through their situations?
• [32:50] Who typically engages you; is it more of the successor generation or the boomers who have built the family business and are looking to hand over?
• [34:55] About Jonathan's book: "The Disruptive Successor"
• [41:10] The role of the different cultures in the family business
• [44:50] Defining "Family"
• [48:00] A letter from Jonathan to his kids

*For more episodes go to *
BusinessOfFamily.net

Sign up for The Business of Family Newsletter at https://www.businessoffamily.net/newsletter

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Jonathan Goldhill.

Sponsored By:

• The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations.

Links:

• Goldhill Group | Certified Scaling Up Coach | Business Adviser — Connect with Jonathan
• Book: Disruptive Successor: A Guide for Driving Growth in Your Family Business — Get Jonathan's new book on Amazon
• Book Website: Disruptive Successor — If you genuinely are a Disruptive Successor, you’ll have a different vision from that of your forebears.

Tiho is known to visit up to 20 countries per year, all the while observing global economic trends, purchasing offshore real estate and executing investments on behalf of his clients.

Standout Quotes:

• “The margins in luxury real estate can be insanely profitable as long as you know what you’re doing and as long as you choose the right deal.” - Tiho Brkan [21:27]
• “Asian millennials are now becoming the most important demographic for the whole global economy.” - Tiho Brkan [35:30]
• “The beautiful thing about mezzanine debt is that it has equity-like returns and bond-like downside protection or margin of safety, and that’s why we like it. ”- Tiho Brkan [42:05]
• “Focus on learning from the right source and really moving the needle on what’s important and what counts.” - Tiho Brkan [1:03:55]

Key Takeaways:

• How to master the blend between an entrepreneur and an investor
• Learning world cultures through travel
• The importance of diversifying your capital into alternative assets as a high net worth individual or family office
• Understanding the global tax scene when investing across the world
• Capital Stack and the difference between senior and mezzanine debt

Episode Timeline:
[1:35] Tiho shares his background both personally and professionally
[4:05] He shares the reason why he travels and how it has changed the way he views the world
[9:02] How Atlas Investor helps investors gain access to extremely attractive private deals plus using the mastermind model with their investors
[13:50] He talks about his clientele and how COVID-19 has affected the investing world
[16:18] The five strategies they use when investing in real estate across the globe
[24:15] The experience of buying and selling luxury real estate
[27:44] He explains how he handles tax when he lives and conducts business globally
[35:12] The macro view, why the Asian millennial will play a big role in the future global economy
[38:37] The advantages of real estate mezzanine debt investment and why real estate investors prefer it over senior debt
[46:49] Tiho explains what they look for when investing in real estate developments
[54:27] How mentors that included his father played a huge part in his success
[1:00:33] He explains the involvement of his family in the business and the importance of learning from the right sources as a younger person

For more episodes go to BusinessOfFamily.net

Sign up for The Business of Family Newsletter at newsletter.mikeboyd.com.au

Follow Mike on Twitter @MikeBoyd

If you feel it's appropriate, I'd so appreciate you taking 30 seconds to Leave a Review on iTunes, I receive a notification of each review. Thank you!

Special Guest: Tiho Brkan.

Sponsored By:

• The Business of Family Newsletter: The newsletter compliments the podcast with subscriber-only articles, bonus content and a great list of book recommendations.

Links:

• Book: Think and Grow Rich: Napoleon Hill — In the original Think and Grow Rich, published in 1937, Hill draws on stories of Andrew Carnegie, Thomas Edison, Henry Ford, and other millionaires of his generation to illustrate his principles.
• The Atlas Investor — Changing the way investors diversify into alternative assets
• Tiho Brkan (@TihoBrkan) / Twitter