Transcript
Hi everybody, Alex Sonkin here with the Due Diligence Project and Virtual Family Office Hub. I want to talk to you a little bit about family offices, the difference between a single family office, a multi family office in a virtual family office with best in class peer reviewed resources. And then the fourth option, which is having no family office at all, meaning the business owner themselves, are running their own pseudo family office, managing their CPA firm, law firms, advisory firms, specialty firms, and really running their own family office without any experience which takes a lot of time and energy and can be very, very frustrating because you have to manage if you have a question, a complicated question, you're selling an asset acquiring a new asset. You want to roll that into your estate plan, your wealth plan, your tax plan, you've got to make a number of phone calls and you might have some questions. So when you call your CPA firm and law firm, especially advisory firms, you may make Six or seven phone calls and get six or seven different answers back from all these different players in your group of resources. And you may not be qualified to analyze all those answers and figure out what's good, what's better, what's best. Which is really, really frustrating for a lot of business owners out there who are operating without a family office.
Now, some business owners who sell their companies create a lot of liquidity, say, Hey, I just want to manage all my resources. Now I've got a lot of liquidity. I'm going to set up a family office so I don't have to make seven phone calls. I can make only one phone call to the leader of my family office and that's really the real benefit of having family office. One point of contact with everyone under one roof. You have a leader who hires you, you know your CPA, firm, law firm all these different resources under one roof you have a question you make one phone call and they take care of you.
A multi family office just simply allows more than one family to enjoy these benefits. Sharing The cost with more than one family can reduce the cost of family office from from a quarter million 1,000,002 million dollars a year down to a fraction of that. And you can share those services and reduce your costs. But the question is does a single family office and a multi family office are capable of hiring the very, very best specialist, the very best attorneys, the very best CPAs with tax specialties to work for you as W2 employees in your single family office or your multi family office? And what we've noticed over the last 20 years, the very very best specialists in the world, the very best tax turns best best resource in the world. They've left their big firms they don't want to be W2 employees on in general. They want to run their own boutique shops or midsize shops. They want to be on the east coast on the west coast. They want to be an Aspen where they want to be Bahamas.
And so what we've realized is the very very most efficient structure out there is not a single family office. It's not a multi family office. And it's not trying to run your own family office without having any experience knowing how to make, you know, sell widgets out there, all of a sudden you're running a family office without that financial background.The most efficient family offices have virtual family offices with best in class peer reviewed resources. So just like Yelp, Amazon, Netflix uses peer review, a virtual family office can be easily built out with our community of over 200 independent CPA firms law firms, especially firms, in part of the due diligence project who continually introduce their favorite resources into the community and the community vets out every single new resource or old resources. And as new members join the due diligence project and new law firm new CPA firm new family office joins a due diligence project. They're going to do their independent due diligence on every resource that's already part of the community. And they're going to independently introduce their favorite resources and the rest of the community is going to do due diligence. Their favorite resource.
So the due diligence project never ever stops conducting its due diligence on resources and strategies. And at the end of the day, what happens is due diligence project figures out who's the best specialist in this area, who's the best tax attorney in this particular area of income tax mitigation, who is the best estate planning attorney who's the best international specialist in this specific area of international tax planning. So all of that is constantly being evaluated. And we are able to continually figure out who is the first chair of this specialty who's in the second year, third year, fourth year and fifth year. So just like Amazon has independent peer review, Yelp has independent peer reviewed Netflix has independent peer review. Our elite family offices and CPAs want that same level of independent peer review so they can build out their own virtual family offices with best in class peer reviewed resources.
So when a family office goes out there and says, look, we have the very, very best Peer Reviewed network of attorney specialists resources on the planet. There's a function that's happening 20 473 65 within this community that's continually vetting that's continuing making sure that in the first chair of this position, we have the very, very best resource that this independent peer reviewed global community has identified. And they're constantly doing due diligence so we figured out the due diligence project and the virtual family office hub has been building up family offices for a very, very long time. We've been doing this for over six years.
And we've always built out a virtual family office with best in class peer reviewed when we get single family offices or multifamily offices that come and find us and plug into the due diligence project and plug in the virtual family office hub. We will go out and help them restructure their organization to make sure to get rid of any b plus b Minus players and replace all those players with a plus or a level players. And those are the differences between the virtual family office with best in class peer reviewed resources. And the more traditional family offices that been out there, those structures, the single family office, the multi family office, and of course, the no family office, which is completely inefficient, where a business owner has no experience and finance who is amazing at creating and selling some kind of widget that's create massive wealth doing that trying to manage their own family office manage their own CPA firm law firm, especially from and so forth, which wastes a lot of time and energy and takes away from what's most important.
So there's some thoughts about the difference in a single family office, a multi family office in a virtual family offset best in class peer reviewed resources. Thanks, have a great day.