Underwriting Hotels with Nate Barger

Key insights:

• Ask sponsors what is your worst case
• Going in cap rate doesn’t matter as much on true value-add deals
• Nate evolved from multifamily to hotels due to more earning potential (24-hour leases)
• Nate is currently raising $50M in funds for hotels
• When funding distressed hotels you need to raise funds for the back payments and PIP (Property Improvement Program)
• Focus on Primary & Secondary markets and understand your competitive set

Investor Pro Tip: Understand and align your goals with the sponsor goals Reach out to Nate by joining the BRRRR Invest Facebook Group