Capital Club What We Learned About the Real Estate Investment Space in 2022 with Jarrod Arnold
Jarrod joined Excelsior in June 2019 after spending five years in Public Accounting. He oversees financial matters (including budgeting, forecasting, and tax) as well as Marketing, Human Resources, and Investor Relations. Prior to joining the company, Jarrod was a Tax Manager at KraftCPAs in Nashville, TN focusing on medium-sized companies in a wide range of industries. He was also the Finance Director for the Susan G. Komen Race for a Cure of Middle Tennessee from 2017 to 2019.
Jarrod began his career at BDO in a similar capacity and is a Certified Public Accountant in the state of Tennessee. He received both his B.S. and Master’s in Accounting from the University of Mississippi.
In this episode, Jarrod shares about what has happened in 2022 and what we can learn from this year’s real estate investment space.
Listen in!
Key Highlights:
[00:01 - 06:39] How has Excelsior grown?
- Jared Arnold shares that he is the COO of Excelsior Capital and has been with the company for three and a half years
- Excelsior has grown exponentially in the last year, acquiring 36 million dollars in equity capital and 25 properties
- How Excelsior was able to capitalize on positive investor sentiment and opportunities in the market to make acquisitions
[06:40 - 15:43] The Current Situation in a Strategic Partnership Perspective
- How every acquisition they made has some sort of ten thirty one aspect
- Why things will be more challenging in the lender and equity side in the market
- How they tried to up their game in the podcast space
[15:44 - 22:21] Real Estate Sponsors Remain Stable Amidst Uncertainty
- There has been an increase in 1031 investors, a reduction in retirement account investment, and a decrease in purchase price from early in the year
- The market is challenging and the value proposition for sponsors is harder to prove out
- The Fed wants rates to increase slower but terminal value will be higher than anticipated earlier
[22:22 - 31:30] 72 Million in Capital Raised in 2 Years, No Employees Have Left the Firm
- The firm's successes and challenges over the past two years, including their ability to keep clients and employees happy.
- The biggest challenge for the firm in 2022 is managing the influx of new assets
- The market is challenging and the value proposition for sponsors is harder to prove out
[31:31 - 47:51] The Growth of the Economy
- How the economy has grown dramatically, and international markets have grown even more dramatically
- The United Nations, NATO, World Bank, and IMF have all functioned well in the past - but this is changing. A world where the US puts boots on the ground to do nation-building is gone
- There is no political will to do this on either side of the aisle, and so investors need to recalibrate their thesis around these assumptions
[47:51 - 51:24] Closing Segment
Key Quotes:
“Some assets are gonna have challenges, right? Especially if we do go into a proper recess. But the way that we conduct ourselves, I think will be a real testament to the firm.” - Jarrod Arnold
“Communication, transparency, investor relations, reporting, the soft touch things that we do. We didn't sacrifice any of that just to get those deals done, which is a trap that I've fallen into before.“ - Jarrod Arnold
Connect with me on LinkedIn!
LIKE, SUBSCRIBE, AND LEAVE US A REVIEW on Apple Podcasts, Spotify, Google Podcasts, or whatever platform you listen on. Thank you for tuning in and Stay Tuned for the Next Episode COMING SOON!
Hosted on Acast. See acast.com/privacy for more information.