Masters of Moments #10: Jake Wurzak - How We Underwrite Deals
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Apr 26, 2023 Delve into the world of hospitality investment with insights on underwriting processes. Learn how DoveHill Capital Management evaluates deals through both qualitative and quantitative lenses. Explore the crucial factors like historical performance and revenue trends, plus the art of modeling essential deal components. Jake Wurzak shares lessons from past mistakes and highlights key steps in their investment committee process. Gain valuable tips on how to navigate Capex issues and make informed investment decisions.
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Underwriting Defined
- Underwriting in hospitality real estate assesses a property's financial viability before investing.
- It involves analyzing financial performance, market conditions, and potential risks.
Sourcing Deals
- Prioritize off-market deals through networking and incentive programs.
- This approach offers better opportunities than relying solely on brokerage houses.
Qualitative Factors
- Evaluate qualitative factors like location, demand diversity, and potential business plans.
- Consider the brand, capital expenditures, and, crucially, new supply.