#10: Jake Wurzak - How We Underwrite Deals
On today's episode, Jake breaks down how DoveHill Capital Management underwrites Hospitality Deals. He details how they evaluate both the qualitative & quantitative factors of a potential asset, including price, historical performance, revenue trends, and expenses. He also explains how they model deals, identify Capex issues, how they structure deals, and their investment committee process. Finally, he wraps up with mistakes they've made in the past and how you can avoid them. Enjoy!
Links:
Smith Travel Research - str.com/
FRED (Federal Reserve Economic Data) - fred.stlouisfed.org/
CoStar - www.costar.com/
Connect & Invest with Jake:
Follow Jake on Twitter - / jwurzak
Take the Hospitality Investing Masterclass - learn.jakewurzak.com/
Learn How to Invest with DoveHill - bit.ly/3yg8Pwo
Topics:
0:00 - Introducing our first solo show!
02:04 - Defining Underwriting
03:16 - What happens when a deal comes into DoveHill: Evaluating the qualitative factors of a potential asset
10:59 - Quantitative Factors: Price, historical performance, revenue trends, and expenses
20:18 - Modeling: Back of Napkin method
22:55 - Implementing the in-house management team & identifying Capex issues
30:07 - Underwriting the Capital Structure
32:54 - The Exit Scenario & Stating Risks
35:40 - Easy mistakes to make
40:29 - The investment committee process
42:53 - The importance of timing
44:34 - Closing thoughts & Call to action
Пікірлер: 6
I am first gen hotelier , your podcast helped me break down hotel 101 line by line very quality content.
This was awesome. Thanks for putting this together
Jake, thanks for sharing......That was a 4 year degree in less than 1 hour!!!!
Hi Jake, how would you define the difference between underwriting and due diligence?
@jwschmitt8968
Жыл бұрын
Underwriting is part of due diligence.
@tomasb92
11 ай бұрын
UW is understanding a projects potential financial performance against its possible risks. Due dilligence is understanding the current physical and financial performance of a project to better understand said risks. UW involves modelling cash flows and Due Dilligence involves looking at the physical property, performing inspections and closely looking at the historical financials to spot any outliers that might increase the risk of a project substantially.