Jorge Perez’s tough love: How a billionaire prepared his sons for leadership

Billionaire real estate investor Jorge Perez was firm in his decision that his son would not join the family business without first proving himself elsewhere. When his son, John Paul, who was a recent graduate, asked about starting work at The Related Group, Perez was clear: “You’re not going to work for me.”

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He believed that managing $60 billion in assets requires competence, not just family ties. To test his son’s abilities, Perez arranged for him to work under a trusted business partner. However, John Paul wasn’t the only one subjected to high expectations. Perez made it a rule that all his children must earn a master’s degree from a top business school and spend at least five years gaining experience in New York’s competitive real estate market before they could join the company. 

His goal was to ensure that they pursued careers out of passion, not just because real estate was lucrative. He also wanted the company’s employees to respect them for their capabilities, not just their last name. 

By 2012, Perez determined that John Paul had gained sufficient experience and allowed him to join The Related Group as the leader of the rental division, where he had to work his way up. 

His approach proved successful and Paul is now stepping into the role of CEO, sharing leadership of the company with his brother, Nick.