April 28-29, 2014, The Ritz-Carlton, Phoenix, AZ
www.ifgwealthmanagement.com

How Wealthy Families
Should Invest in
Real E...
April 28-29, 2014, The Ritz-Carlton, Phoenix, AZ
www.ifgwealthmanagement.com

Salpi Balian
Press Manager—IFG
pressifg@ifge...
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How Wealthy Families Should Invest in Real Estate - Ted Cronin, Manchester Capital Management

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Ted Cronin, Founding Partner & Chief Investment Officer, Manchester Capital Management LLC, discusses what real estate investments provide a consistent revenue stream and wealth transfer advantages. Cronin is a speaker at the IFG Wealth Management Forum 2014.

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How Wealthy Families Should Invest in Real Estate - Ted Cronin, Manchester Capital Management

  1. 1. April 28-29, 2014, The Ritz-Carlton, Phoenix, AZ www.ifgwealthmanagement.com How Wealthy Families Should Invest in Real Estate FOR IMMEDIATE RELEASE a small fee, after which we also typically manage the property. “The “Wealthy families investing in real estate should purchase properties directly, in their own name, with a single-purpose vehicle,” advised Ted Cronin, Founding Partner & Chief Investment Officer, Manchester Capital Management LLC. Having a business model that is annuity rather than transaction based means we try to select properties that can generate good results yearafter-year and are suitable for intergenerational wealth transfer. A speaker at the IFG Wealth Management Forum 2014, in Phoenix, Arizona, April 28-29, Cronin currently ranks No. 27 on Barron’s annual listing of America’s top 100 independent financial advisors. He is one of very few to have received the recognition for seven consecutive years, since the ranking system was set up. What types of properties do you look for? Cronin added: “Real estate can be a very rewarding alternative to bonds, with wealth transfer advantages that conventional marketable securities do not have.” How can real estate add value to a family wealth portfolio? How should families invest in this asset class? Families have three ways of owning real estate directly. Through a real estate investment fund, which has many layers of fees and fluctuates with the markets as they trade like equities. A second route could be a real estate partnership. These often have a lock-up of around seven years, higher manager fees and are illiquid. The biggest problem with this route is that the manager may want to cash out at the end of the term. As most families want to keep properties for multiple generations, this short timeframe is not suitable. A third option, what we do, is talk to the family to understand what kind of real estate they want to own and where, and go out to find properties with those qualities. When we find a building with good financial prospects and the family agrees the price is right, we undertake the purchase for In real estate, the price paid going in dictates the outcome of the investment. You have to purchase the property at the right price and in a good location. Using downtown San Francisco as an example, its economy may rise and fall, but it is unlikely to become a Detroit. Properties where the owner may be suffering some financial distress, thus selling at a low value, are attractive, as well as properties that have not been managed well, as some improvements to the tenant agreements and upgrades to the building could generate the right kind of revenue. What are the most important decisions that wealthy families need to make? Why should they focus on big-picture wealth management? The least important decision they will make is which individual securities to own. Whether they choose Merck or Johnson & Johnson stocks, it will not make a big difference in the financial outcome of their portfolio. The asset allocation decisions, whether to invest in US stocks, foreign stocks, bonds, cash or hedge funds will make a bigger impact on the overall performance of the portfolio. What is the purpose of the money? Is the portfolio structured to accommodate the family goals? What is the family’s appetite and capacity for risk? There are many policy decisions that impact wealth preservation. Families need to avoid the giant pitfalls. Interview with Ted Cronin, Founding Partner & Chief Investment Officer, Manchester Capital Management LLC Ted Cronin of Manchester Capital Management LLC discusses what real estate investments provide a consistent revenue stream and wealth transfer advantages. Cronin is a speaker at the IFG Wealth Management Forum 2014.
  2. 2. April 28-29, 2014, The Ritz-Carlton, Phoenix, AZ www.ifgwealthmanagement.com Salpi Balian Press Manager—IFG pressifg@ifgemea.com For more information: pressifg@ifgemea.com About the IFG Wealth Management Forum 2014 IFG’s Wealth Management Forum 2014 provides a unique platform for investment decision makers from single and multi-family offices to engage in vibrant benchmarking sessions and gain practical solutions and best practices to achieve optimal portfolio returns. For more information please send an email to pressifg@ifgemea.com or visit the event website at www.ifgwealthmanagement.com About International Forum Group International Forum Group is a world-leading business information company, organizing exclusive, invitation-only gatherings of business leaders across multiple industry sectors. Providing a platforms for senior executives to built mutually beneficial business partnerships, International Forum Group has designed an unparalleled system for matching the core buying needs of the world’s largest organizations with the best solutions available in the global marketplace. Empowering all our clients with the knowledge they need to lead in their respective fields is a fundamental goal of all our forums. For more information, please visit: www.internationalforumgroup.com All rights reserved. The above content may be republished or reproduced. Please notify prior to usage at pressifg@ifgemea.com

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