48 min
#10: Jake Wurzak - How We Underwrite Deals Masters of Moments
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- Investing
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
FRED (Federal Reserve Economic Data)
CoStar
Connect & Invest with Jake:
Follow Jake on Twitter
Take the Hospitality Investing Masterclass
Learn How to Invest with DoveHill
Topics:
(00:01:02) - Introducing our first solo show!
(00:02:19) - Defining Underwriting
(00:03:32) - What happens when a deal comes into DoveHill: Evaluating the qualitative factors of a potential asset
(00:11:11) - Quantitative Factors: Price, historical performance, revenue trends, and expenses
(00:20:17) - Modeling: Back of Napkin method
(00:23:02) - Implementing the in-house management team & identifying Capex issues
(00:30:14) - Underwriting the Capital Structure
(00:32:57) - The Exit Scenario & Stating Risks
(00:35:40) - Easy mistakes to make
(00:40:29) - The investment committee process
(00:42:53) - The importance of timing
(00:44:35) - Closing thoughts & Call to action
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
FRED (Federal Reserve Economic Data)
CoStar
Connect & Invest with Jake:
Follow Jake on Twitter
Take the Hospitality Investing Masterclass
Learn How to Invest with DoveHill
Topics:
(00:01:02) - Introducing our first solo show!
(00:02:19) - Defining Underwriting
(00:03:32) - What happens when a deal comes into DoveHill: Evaluating the qualitative factors of a potential asset
(00:11:11) - Quantitative Factors: Price, historical performance, revenue trends, and expenses
(00:20:17) - Modeling: Back of Napkin method
(00:23:02) - Implementing the in-house management team & identifying Capex issues
(00:30:14) - Underwriting the Capital Structure
(00:32:57) - The Exit Scenario & Stating Risks
(00:35:40) - Easy mistakes to make
(00:40:29) - The investment committee process
(00:42:53) - The importance of timing
(00:44:35) - Closing thoughts & Call to action
48 min