By Jake Wurzak
5
3030 ratings
The podcast currently has 84 episodes available.
This episode is a deep dive into Preferred Equity with audience Q&A. Enjoy!
Connect & Invest with Jake:
Follow Jake on Twitter
Take the Hospitality Investing Masterclass
Learn How to Invest with DoveHill
Topics:
(00:00:00) - Intro
(00:02:32) - Introducing preferred equity
(00:06:15) - Preferred equity and returns
(00:13:03) - Last Dollar Basis
(00:15:55) - Basic structures of preferred equity
(00:19:30) - Control and rights
(00:20:50) - Non-subordination
(00:23:50) - Preferred Equity doesn’t need to be paid current
(00:25:05) - Pitfalls
(00:27:49) - Terms
(00:30:38) - Why Preferred Equity is Better than Private Credit
(00:33:11) - Deal sizes for Preferred Equity
(00:39:20) - Common objections
(00:41:35) - Q&A
Opterra Capital is real estate investment sponsor and operating partner, capital markets advisor, and asset manager with significant experience in all sectors of commercial real estate. Founded by Glenn Alba, a former Managing Director at Blackstone with over 23 years experience in real estate, Opterra Capital seeks to leverage this expertise towards value-add acquisition and proactive investment management to deliver attractive, risk-adjusted returns.
Opterra’s core investment strategies focus on both value-add (opportunistic) and stabilized, income-oriented assets in the hospitality, office and multi-family sectors. Our approach seeks to capitalize on mid-market opportunities in the $25 -150 million range in the United States, Canada, and the Carribean. Our investment strategy is strongly influenced by our deep asset management experience to identify the proper capital repositioning, cost reduction and operating leverage opportunities inherent in each asset to maximize returns to investors.
On this episode, Jake & Glenn discuss:
Links:
Opterra Capital
Glenn on LinkedIn
Connect & Invest with Jake:
Follow Jake on Twitter: https://twitter.com/jwurzak
Take the Hospitality Investing Masterclass: https://learn.jakewurzak.com/
Learn How to Invest with DoveHill: https://bit.ly/3yg8Pwo
Timecodes:
(00:00:00) - Intro
(00:01:01) Glenn’s career at Blackstone and the decision to leave
(00:06:39) Rolling the Blackstone mentality into Opterra
(00:08:09) Glenn on falling in love with Hospitality
(00:09:57) How Blackstone shaped Glenn’s Investment Perspective
(00:13:02) How Opterra evaluates deals
(00:16:54) Opterra’s capital strategy
(00:19:15) Converting Office into a Luxury Hotel
(00:23:49) Structuring a business to be focused on doing what you want to do
(00:26:35) The ‘no-assholes’ policy
(00:32:46) Post-Pandemic approach to doing deals
(00:34:29) Qualities behind great RE investors and asset managers
(00:39:01) Developing an asset management platform
(00:44:11) Implementing processes at Opterra
(00:49:19) Acquisitions processes
(00:57:49) Areas in Hospitality ripe for disruption
(01:04:56) How have the past 3 years informed your decisions for the next 5 years?
(01:09:58) How do you know when to sell?
(01:15:32) What’s your favorite hotel?
Mahavir Patel is President & CEO of Aatmos, which focuses on investing in communities with growing demand and limited supply, investing in capital and culture. They partner with Marriott, Hilton, and IHG, as well as some of the most provocative creatives and curators in the country.
Links:
Aatmos
Mahavir on LinkedIn
Connect & Invest with Jake:
Follow Jake on Twitter: https://twitter.com/jwurzak
Take the Hospitality Investing Masterclass: https://learn.jakewurzak.com/
Learn How to Invest with DoveHill: https://bit.ly/3yg8Pwo
Topics:
(00:00:00) - Intro
(00:02:42) - Managing a lifestyle hotel with Marriott
(00:19:08) - Differences between Mom & Pop style hotels vs. major brands
(00:12:51) - The clash between old-school and new-school hospitality
(00:16:01) - What do most people underestimate about hospitality?
(00:19:55) - Converting a motel into a lifestyle hotel
(00:32:25) - What did you miss in this project?
(00:39:33) - F&B
(00:44:12) - What are you doing less of as you do these conversions?
(00:47:57) - The inspiration of Blackberry Farm
(00:52:04) - How do you make your sub-100-key hotels profitable?
(00:57:47) - The inn-keeper concept
(01:07:41) - Where do you want to be in 5 years?
(01:08:49) - What’s your favorite hotel?
Cyrus Vazifdar is a Managing Director in the Hospitality Investment Advisory practice at Hodges Ward Elliott. He specializes in institutional-grade hotel and resort property transactions throughout North America, including investment advisory and equity placements.
Connect & Invest with Jake:
Follow Jake on Twitter: https://twitter.com/jwurzak
Take the Hospitality Investing Masterclass: https://learn.jakewurzak.com/
Learn How to Invest with DoveHill: https://bit.ly/3yg8Pwo
Links:
Cyrus on LinkedIn
HWE
Topics:
(00:00:00) - Intro
(00:03:41) - Cyrus career in Hospitality brokerage
(00:10:22) - The growth around the Miami area
(00:12:58) - Hospitality brokers vs. other asset classes
(00:16:06) - Gauging the credibility of brokers
(00:19:18) - Broker stories
(00:21:08) - What’s the biggest difference between the blackstones and owner-operator groups?
(00:23:54) - Thoughts on the state of commodity hotels
(00:29:32) - Pivoting into ultra-luxury hospitality
(00:34:36) - What does Ultra luxury mean to you?
(00:36:42) - The importance of Brand
(00:39:39) - What insights have you gained in making an ultra-luxury property profitable?
(00:42:52) - Development approaches
(00:50:00) - Fund Structure
(00:53:07) - Planning and Hold timelines
(01:00:39) - How are ultra-luxury hotels making money?
(01:03:48) - Operations and management
(01:05:36) - Why would you pass on a deal?
(01:09:53) - Why is ultra luxury your best bet?
(01:15:38) - What is your favorite hotel?
Austin co-founded Pacaso to make the dream of second home ownership a reality for more people after experiencing the profound effect it had on his own life. Pacaso is Austin’s second startup. In 2008, he founded Dotloop in his hometown of Cincinnati, a company that created software to seamlessly manage real estate transactions. Zillow acquired Dotloop in 2015, and Austin continued to run Dotloop as a Zillow executive until 2018.
Links:
Austin on LinkedIn
The Pacaso Backstory
Connect & Invest with Jake:
Follow Jake on Twitter: https://twitter.com/jwurzak
Take the Hospitality Investing Masterclass: https://learn.jakewurzak.com/
Learn How to Invest with DoveHill: https://bit.ly/3yg8Pwo
Topics:
(00:00:00) - Intro
(00:02:31) - Austin’s career in RE
(00:08:54) - Building DotLoop
(00:25:52) - Selling the business to Zillow
(00:28:33) - The future of RE agent commissions
(00:34:09) - Building Pacaso
(00:41:05) - Raising capital for the business
(00:48:43) - Revenue opportunities
(01:01:45) - Market selection
(01:05:18) - Master-plan resort communities
(01:10:48) - International markets
(01:14:12) - Most common objections
(01:15:43) - Challenges in seasonal markets
(01:16:55) - Financing in a co-ownership structure
(01:18:42) - What is your favorite hotel?
On this solo episode, Jake dives into GP fees. He explains why GPs should charge fees, the differences between deal shops and Real estate private equity firms, how to build great returns, the types of fees you will see from GPs, what to charge as a GP and more.
Connect & Invest with Jake:
Follow Jake on Twitter: https://twitter.com/jwurzak
Take the Hospitality Investing Masterclass: https://learn.jakewurzak.com/
Learn How to Invest with DoveHill: https://bit.ly/3yg8Pwo
Timestamps
(00:00:00) - Intro
(00:01:02) Why are we talking about Fees?
(00:03:39) Why GPs charge fees
(00:09:02) Deal shops vs. Real Estate Private Equity Firms
(00:10:23) Charging market fees to build great returns & borrowing costs
(00:14:45) Real Estate Operating Companies vs. Assets
(00:17:15) Understanding where your company is at in it’s life cycle
(00:18:42) Primary components and fees you’ll see
(00:20:04) What to charge for and include in fees
(00:22:10) Do not operate at a loss
(00:23:08) Project Management vs. Asset Management
(00:29:24) Final Thoughts
Isaac's primary focus centers on luxury residential properties, prime land holdings, office spaces, and mixed-use assets strategically positioned in prime locations. BH Group mitigates risk exposure by targeting large-scale, value-adding prospects within specialized markets while maximizing returns. BH Group has forged partnerships with leading real estate firms in the United States, successfully completing over 1,100 luxury residential units, with an additional 10,000 units in progress.
Links:
BH Group - https://www.bhgroupmiami.com/
Connect & Invest with Jake:
Follow Jake on Twitter: https://twitter.com/jwurzak
Take the Hospitality Investing Masterclass: https://learn.jakewurzak.com/
Learn How to Invest with DoveHill: https://bit.ly/3yg8Pwo
Topics:
(00:00:00) - Intro
(00:02:33) - Isaac’s upbringing in Israel and career
(00:06:56) - Coming to the United States and the love for Florida
(00:12:38) - What are your partner’s perceptions of you?
(00:15:57) - How do you think about risk and diversification?
(00:17:39) - How involved are you in the deal process?
(00:20:11) - What have you learned about simplicity in complicated transactions?
(00:25:36) - A walkthrough of a condo development
(00:34:18) - Target returns & deal structures
(00:37:25) - How are you compensated for your work?
(00:39:57) - What area of Florida are you interested in investing in?
(00:42:59) - Timing construction with sales
(00:46:56) - Branding
(00:51:59) - The future of Florida
(01:00:09) - Isaac’s biggest mistake, marriage, and parenting
(01:02:41) - Negotiation
(01:05:04) - What is your favorite hotel?
Sean is a Principal and Managing Partner of Trinity Investments as well as the President and Chief Executive Officer of Trinity Investments and Trinity Fund Advisors LLC. He oversees the firms’ investment activities, including sourcing and executing investment opportunities, formulating investment strategies, and structuring acquisitions and dispositions. Prior to joining Trinity, Mr. Hehir worked for HVS International.
Mr. Hehir received a Bachelor of Science Degree in Hotel Administration from Cornell University and a Diploma in Hotel Administration from the Hotel Institute Montreux, Switzerland.
On this episode, Sean and Jake discuss:
Connect & Invest with Jake:
Follow Jake on Twitter: https://twitter.com/jwurzak
Take the Hospitality Investing Masterclass: https://learn.jakewurzak.com/
Learn How to Invest with DoveHill: https://bit.ly/3yg8Pwo
Links:
Sean on LinkedIn
Trinity Investments
Topics:
(00:00:00) - Intro
(00:02:11) Sean’s journey from Botswana to the United States
(00:06:50) Influences on Sean’s investment decisions
(00:07:56) Where do you see hotel labor moving within the US?
(00:10:31) How did you learn to be an investor?
(00:13:49) Why drew you to hospitality?
(00:16:25) Does being in Hawaii make you feel left out?
(00:17:53) What trends are you focusing on now that will pay dividends in the next decade?
(00:22:10) Executing $500m of renovation projects
(00:26:02) Raising Capital
(00:27:48) Do you fear more pain in the hotel industry?
(00:29:39) Where will you be investing as we enter another cycle?
(00:31:18) Learnings from the GFC
(00:33:04) What is a GP fund?
(00:36:43) How do you go to major banks and borrow from them?
(00:39:57) How do you design your fee structure?
(00:40:55) What did you learn from the GFC that showed you the massive opportunity coming from Covid?
(00:45:41) How do you think about the enterprise value?
(00:48:16) Thoughts on WFH from a business owner perspective
(00:51:19) Fostering a no-asshole culture
(00:52:36) The process of raising funds
(00:59:28) How do you execute your business plan with an existing manager in place?
(01:02:18) How do 4 Seasons and Hilton differentiate in their focuses?
(01:04:07) Navigating luxury F&B and discussing deals
(01:12:05) Strategy and deal criteria
(01:12:08) Micro resorts
(01:25:23) What makes a great partner?
(01:29:00) What is your favorite hotel?
We're at the start of a new Real Estate cycle! In today's episode, we discuss how to raise capital during tough times. Enjoy!
Connect & Invest with Jake:
Follow Jake on Twitter: https://twitter.com/jwurzak
Take the Hospitality Investing Masterclass: https://learn.jakewurzak.com/
Learn How to Invest with DoveHill: https://bit.ly/3yg8Pwo
Topics:
(00:00:00) - Intro
(00:02:32) - Introduction: The capital sitting on the sidelines & targeting family offices
(00:10:11) - Relationship building and finding deals
(00:17:13) - Growing your network
(00:26:09) - Overcoming challenges
(00:35:03) - Q&A
Dev Motwani serves as Managing Partner of Merrimac Ventures, a Fort Lauderdale-based real estate firm focusing on value-added investment and development opportunities. Property types owned and operated include hotels, condos, retail, office, and rental apartments primarily in South Florida but also throughout the United States.
On this episode, Jake and Dev discuss:
Links:
Dev on LinkedIn
Merrimac Ventures
Six Senses Douro Valley
Connect & Invest with Jake:
Follow Jake on Twitter: https://twitter.com/jwurzak
Take the Hospitality Investing Masterclass: https://learn.jakewurzak.com/
Learn How to Invest with DoveHill: https://bit.ly/3yg8Pwo
Topics:
(00:00:00) - Intro
(00:02:00) - Dev’s upbringing and career in real estate and hospitality
(00:12:46) - Mentorship
(00:16:42) - Meeting Donald Trump
(00:19:10) - Acquiring a full city block of real estate
(00:21:24) - What asset classes were you working on outside of hotels early on in your career?
(00:24:19) - How did you raise capital on your first deal?
(00:28:15) - Key characteristics of land sites that make it work
(00:32:34) - Working with LPs
(00:37:01) - How are you structuring deals?
(00:39:35) - How are you unlocking liquidity as you begin working with family offices and high-net-worth individuals?
(00:41:39) - What are some of the mistakes you’ve made buying land?
(00:48:23) - How are you considering investing in other parts of FL?
(00:51:01) - Going into the Telluride market
(00:58:52) - Condo economics
(01:07:35) -Thoughts on shadow STRs
(01:10:28) - How to deal with challenging partnerships
(01:12:53) - What’s your favorite hotel?
The podcast currently has 84 episodes available.
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