Jose on Opportunity Zones and Private Investment Mandates

Richard C. Wilson interviews Jose about his multifamily office's investment mandate and what it seeks in private investments.

Richard C. Wilson introduces an investor mandate interview with Jose, a representative of a multifamily office. They discuss the office's investment mandate, how it approaches private investments, its interest in opportunity zones, and how it thinks about portfolio construction. Jose also shares his perspective on evaluating individual real estate deals and public equity holdings.

In this video: Richard C. Wilson (Founder of the Family Office Club), Jose (Representative of a multifamily office)

What they said

1. Jose on Private Deal Sourcing. Jose says the office relies on its network for private deals. For direct investments, it prefers knowing the developer, property manager, or asset, and that familiarity shapes its regional focus. (at 2:48)
2. Jose on Opportunity Zone Impact. Jose says the office seeks opportunity zone real estate projects with a quantifiable, identifiable social benefit. He wants the investment to deliver impact as well as use the zone structure. (at 5:08)
3. Jose on Real Estate Return Hurdles. Jose believed public market moves meant private real estate had been repriced, raising return hurdles for projects. He thought that could favor buying and improving existing property, or completing a stalled project, over a ground up build. (at 5:38)
4. Jose on Opportunity Zone Private Equity. Jose sees the opportunity zone legislation as especially suited to private equity, even more than real estate. He says the office is looking for partners and opportunities in that area. (at 6:35)
5. Jose on Public Equity Costs and Private Deal Risk. Jose said large investors with more than 30 million in public equities could save $100,000 by moving 35 million from an actively managed fund into an ETF or individual stocks. He also said real estate investors who aren't close to a deal's parties or asset may underestimate risk and overestimate return, and that a private fund could provide diversification. (at 9:21)

In their words

"We manage assets for families from around the country"

"Most of our clients are business owners or families that had a business and sold it."

Why it matters if you are building or preserving great wealth

Jose's impact standard gives the office a screen for opportunity zone proposals. A zone location alone wouldn't answer whether a project fits his mandate, he wants a social benefit the team can identify and quantify.