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Hotels Debt Funds and Diversified Returns with Matt Faircloth
On this week’s episode, Kent is joined by Matt Faircloth. Matt walks through his 20-year journey from small single-family deals to raising hundreds of millions in private capital and building a diversified portfolio of multifamily, hotels, and a debt fund. He and Kent unpack why the classic value-add play has changed in today’s market, where he still sees opportunity in newer assets and public-private partnerships, and how tax incentives can make new construction pencil. They also dig into why he’s leaning into cash-flow-focused deals, what LPs should demand from sponsors right now, and how to underwrite for the next “black swan” instead of hoping the last cycle’s playbook still works.
Where to find Matt:
- DeRosa Group: https://www.derosagroup.com/
- Landlord Chronicles YouTube channel: https://www.youtube.com/channel/UCbVJpAsilhvzJp-B-fHz1og
- The Best Ever CRE Show podcast: https://podcasts.apple.com/us/podcast/the-best-ever-cre-show/id904025246
Key Takeaways
- Why traditional heavy value-add in Class B and C multifamily is crowded in many Southeast markets, and where Matt still sees upside in mismanaged and newer 10–15-year-old assets.
- How public-private partnerships, tax abatements, and programs tied to AMI can dramatically improve new-build and redevelopment returns by reducing the real estate tax burden.
- Matt’s thesis for diversifying into newer multifamily, hotels, and a debt fund to blend dependable cash flow with long-term appreciation potential.
- The growing importance of strong operating reserves, conservative leverage, and planning for insurance spikes, tax hikes, and other “unknowns” instead of assuming smooth sailing.
- Why many LPs are burned by recent vintages, how funds can offer diversification versus single-asset deals, and what passive investors should look for in terms of operator experience, fund terms, NAV updates, and liquidity.
Books mentioned
- Raising Private Capital: Build Your Real Estate Investing Empire with Other People's Money by Matt Faircloth – https://store.biggerpockets.com/products/raising-private-capital-revised-edition (BiggerPockets Bookstore)
Check us out on socials:
Youtube
https://hudsoninvesting.com/
Production by Outlier Audio
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By Kent Ritter
5
6161 ratings
On this week’s episode, Kent is joined by Matt Faircloth. Matt walks through his 20-year journey from small single-family deals to raising hundreds of millions in private capital and building a diversified portfolio of multifamily, hotels, and a debt fund. He and Kent unpack why the classic value-add play has changed in today’s market, where he still sees opportunity in newer assets and public-private partnerships, and how tax incentives can make new construction pencil. They also dig into why he’s leaning into cash-flow-focused deals, what LPs should demand from sponsors right now, and how to underwrite for the next “black swan” instead of hoping the last cycle’s playbook still works.
Where to find Matt:
- DeRosa Group: https://www.derosagroup.com/
- Landlord Chronicles YouTube channel: https://www.youtube.com/channel/UCbVJpAsilhvzJp-B-fHz1og
- The Best Ever CRE Show podcast: https://podcasts.apple.com/us/podcast/the-best-ever-cre-show/id904025246
Key Takeaways
- Why traditional heavy value-add in Class B and C multifamily is crowded in many Southeast markets, and where Matt still sees upside in mismanaged and newer 10–15-year-old assets.
- How public-private partnerships, tax abatements, and programs tied to AMI can dramatically improve new-build and redevelopment returns by reducing the real estate tax burden.
- Matt’s thesis for diversifying into newer multifamily, hotels, and a debt fund to blend dependable cash flow with long-term appreciation potential.
- The growing importance of strong operating reserves, conservative leverage, and planning for insurance spikes, tax hikes, and other “unknowns” instead of assuming smooth sailing.
- Why many LPs are burned by recent vintages, how funds can offer diversification versus single-asset deals, and what passive investors should look for in terms of operator experience, fund terms, NAV updates, and liquidity.
Books mentioned
- Raising Private Capital: Build Your Real Estate Investing Empire with Other People's Money by Matt Faircloth – https://store.biggerpockets.com/products/raising-private-capital-revised-edition (BiggerPockets Bookstore)
Check us out on socials:
Youtube
https://hudsoninvesting.com/
Production by Outlier Audio
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