Billionaire reveals why he made his son work in a different company: ‘You’re not going to work for me’

Jorge Perez is the chairman and CEO of The Related Group, a Miami-based real estate company that manages $6 billion in assets. (Image credit: AFP)

American investor and real estate billionaire Jorge Pérez was adamant -- his son would not be allowed to get a job at the company unless he joined a different company and gathered some work experience. He did not want to risk his reputation managing $60 billion in assets by hiring his son only because they are family.

“You’re not going to work for me,” Pérez recalled to CNBC’s Inside Wealth when his son, a fresh graduate, had asked him when he could begin work at the family company. Jon Paul admitted that he was shocked by his father's sternness, but he agreed to fulfill his father's wishes.

Accordingly, Pérez tested his son’s abilities by making him work for his close friend and business partner.

But Paul wasn't the only child that the billionaire owner of The Related Group who was put to test. Pérez told all of his children that to work for him, they had to get a master’s degree from a top business school first and spend at least five years working in the tough New York real estate market, Fortune reported. He had a strict policy to ensure his children weren’t just following his own career path only because of how lucrative it can be.

“I told them just because I’ve been successful in real estate, don’t pick something you don’t have a passion for,” Pérez told CNBC, adding he didn’t want the rest of the company to "feel that they were brought in because of their last name".

In 2012, Pérez figured that Paul had gained enough experience to join The Related Group. He was made the leader of the rental business and had to work his way up.

The patience and the tough love eventually paid off. Paul is now taking over as the company's CEO. He will run the company alongside his brother, Nick.