Worth it to leave role?
Work at an institutional shop in acquisitions. Analyst with 2 YOE. Have a backer who will front capital to buy the hotel (specifically want hotel exposure) and allow me to be GP and earn promote. They probably have enough equity to buy 30m worth of deals with the use of leverage. So 15m of equity. Not sure what I would do after acquiring 2 deals with them and how things would play out after that. I’d obviously asset manage and what not. But not sure how I could scale from there. I’d have to figure that out later. Would you take up an opp like this? It would give me A track record which is super beneficial.
Seems like a great opportunity, but if you’re asking this question are you really ready for it? Can’t have any doubts. I’m sure if you were successful here, you can snowball into other opportunities.
What's the strategy? Investment criteria? Return requirements? What is your experience in hotel operations? Who will handle staffing/hiring?
Who is giving an acquisitions analyst with 2 years of RE experience $15m to play hotel acquisitions AND asset management lead? Sorry if I sound incredulous, but I am. If you don't mind sharing, how did you come upon this opportunity and what gives you (any level of) confidence that you could be successful in this endeavor?
Congrats. You have a bright future if this is happening for you this young in life.
Having done what you are thinking about doing I would say:
- it sounds like a great opportunity if you don’t need current income (already wealthy)
- if you do need income I would spend time thinking about the economics of this for you:
Promote is great but even if the deals work you probably won’t be into it until exit or refi
So your current income will maybe come from acquisiton fees and asset management fees. However, guy saying “come buy me $30mm of hotel deals” to a young analyst doesn’t seem like the type to want to pay 1.5-2% acq and am fees particularly if it is all his own $.
- can you broker/freelance/consult/work a w2 while doing this?
- what is this persons history with hotel and real estate investing? Situation seems odd but I have seen plenty of crazy situations
Dont understand how you are getting that opportunity with that experience, but go for it! At worst you would look way more interesting in an interview vs other RE analysts if it fails
I’m in a nearly identical situation and recently made the leap - let’s chat
OP: I just made a throwaway acct- PM this account.
do your DD for red flags, but if there aren’t any- I would absolutely jump on this.
Surprised you and another person in the comments at this stage, but seems like a great opportunity. I think one thing that would stick out to me is people may not take you seriously since you're younger, people in their 30s, 40s, 50s+ will say who's this kid with their parents money etc and not see you as legitimate no matter who the equity partner is.
That's the big one you have to overcome, even if you went to xyz good school an worked at Blackstone you would still face this - once you close a deal or two it could change look at Rob Beardsley at Lone Star Capital as an example, smart guy but young and seems somewhat out of place when he is giving advice because people may feel there are other people with decades of experience that would be better.
You also should see how much they really need to put the capital out, you don't want them to say yeah we can give you $15-20mm+ in equity then even when you bring them a good deal after a year they say no. How likely are they willing to pull the trigger so you can get your actual fees and promote, why you vs others in the industry.
Wait is Rob Beardsley legit? He lives in my friends building in NYC and I always thought he was sus.
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