Beyond creating value: What sets family offices apart from other governance structures

Family offices were established to help ultra-high net worth investors manage their assets more effectively through customized solutions and well-studied investment trends. Family offices manage just about everything for affluent families: estate planning, tax planning, investment management, philanthropy, luxury collections, and even their vacation.

Image Source: slideshare.net

Family offices became popular in the 1800s, with tycoons such as the Rockefellers needing to outsource the management of their growing portfolio. The offices offer almost the same services as top-tier private banks and wealth managers but are generally more flexible and focused.

Image Source: prweb.com

Family offices not just provide customized financial advisory, but also foster family harmony by creating better communication among members. They help the business serve as a platform in keeping the family together and strengthening agreed-upon goals for the future. In other words, the family culture is the business culture. Family offices protect family values and traditions while helping clients keep up with changing market trends.

Image Source: traderbrasilprivate.com

Family offices manage assets with a broader range of complexity, encompassing areas such as conglomerate initiatives, investments in businesses managed by others, and partnerships or passively managed assets. Such intricacy and density of responsibilities help owners and the management make sound decisions and strive for quality.

A family office founded by Amit Raizada, Spectrum Business Ventures manages a highly diversified portfolio of investments across the country. Visit this website to know how the company could help you manage your assets.

Key advantages in multifamily real estate development

Typically found in more densely populated urban areas, multifamily real estate comprises an assortment of housing options, which involve many households living together in units within the same property. A perennial staple of city living, the multifamily home has resonated with investors like Amit Raizada and Spectrum Business Ventures for a number of excellent investment reasons.

 Image source: Fdmre.org

Prospective investors in rental real estate are often greeted with the promise of constant cash flow and relative market stability in owning a rental property, all of which guarantee a hedge against upkeep and renovation expenses and a rapid return of investment. For smaller investors, a single-family home, with its higher rate of appreciation and lower initial investment, seems ideal.

 Image source: Bplans.com

However, the property can only maintain cash flow if it is occupied. Single-family homes, though more popular with mature demographics such as growing families, have a key disadvantage in that they lose their cash flow buffer when they are vacant.

Multifamily homes, even when partially occupied, provide some cash flow, which can cover expenses in part. Although many multifamily buildings are more popular with single adults and smaller families, many others, particularly larger developments, have sufficient public space to attract larger family occupants.

 Image source: Realestatepdx.com

Multifamily properties, in spite of their higher overall capital investment, also have a few other advantages in terms of value. Under-rented properties (and those with improvements made to them) rise in value steadily, making up for their initial disadvantage in gradual appreciation to single-family buildings.  

For more on the investments under Amit Raizada’s company, visit this website.

Amit Raizada is the Chief Executive Officer of Spectrum Business Ventures (SBV).

Amit Raizada founded the company in 2002 with Phillip (Chuck) Rouse. Leading mergers and acquisitions efforts, deal sourcing, structuring and financing for SBV, Amit Raizada is also an active participant in designing and building the business plans and growth strategies for all companies and real estate holdings.

Amit maintains an active presence in the operations of each portfolio entity, focusing on alternative revenue streams and other growth strategies.

Amit Raizada spent the early part of his career pioneering retail sales and operations for wireless juggernaut Nextel – a model he subsequently repeated with T-Mobile, AT&T and Verizon. He then went on to acquire and cultivate a private portfolio comprised of assets in industries such as technology, retail, financial services and real estate. Amit’s business interests are spread across the United States, Canada, Mexico, Central America and Europe.

A love of art and a passion for innovation influences his business and philanthropic philosophies. Amit is an ardent supporter of organizations which demonstrate novel approaches to longstanding problems. The University of Kansas Hospital, for which Amit Raizada helped secure a first-of-its-kind cardiac technology, is one such organization.

Since the firm’s inception, Amit Raizada has grown SBV to include assets and investments representing entities in a wide range of industries. Born in New Delhi, India, Amit Raizada’s family immigrated to the United States when he was just two years old. Amit currently resides in Miami, Florida.