TGCI 174: Investing in Hotels in post COVID-19 world!

Top 6 Reasons To Invest Outside of Wall Street
Download this free e-book to find out why it's critical to your financial success and what the alternatives are.

I have read and agreed to your Privacy Policy

Episode 174: Investing in Hotels in post COVID-19 world!

Copy of EP #18 - 2 Guests

Summary

In today’s show, Pancham interviews Harsh Kejriwal – an active investor and developer in 6 different states and founding partner of HVR Investments.

Investing in hotel deals is not a common concept you’re hearing from investors. People tend to hesitate when it comes to hotel investments but Harsh proves them otherwise! From actively investing in hotels to constructing them from the ground up, Harsh has been doing them all and more! 

In this episode, learn more about the hotel industry as he shares how he got into it, how they still have positive cash flow hotel investments even during the pandemic, and how he started in ground-up hotel development. Curious what this asset class has for you? Tune in as he discusses the concept and the factors that you should consider when investing in hotel deals!

 

Listen and enjoy the show!

PanchamHeadshotTGCI
Pancham Gupta
Screen Shot 2022-01-31 at 1.32.05 PM
Harsh Kejriwal

Tune in to this show and enjoy!

Copy of Quote #00 - 1 Guest

Timestamped Shownotes:

  • 1:38 – Pancham introduces Harsh to the show
  • 3:43 – His journey to investing full time and starting his firm
  • 7:51 – Factors that made him decide to start investing full-time
  • 10:11 – How their hotel investments got through COVID-19
  • 15:30 – On evaluating demands in every market before making decisions
  • 19:16 – The biggest factor that can make or break your hotel deals
  • 21:51 – Details on his first hotel deal and how he is financing his investments
  • 24:23 – Objective of the land fund and how it benefits investors
  • 32:39 – Taking the Leap Round
  • 32:39 – His 1st investment outside of Wall Street
  • 33:09 – On being courageous and having no fears when he 1st invested
  • 33:37 – How his multi-family investment didn’t work out as expected
  • 35:12 – Why new investors should invest with like-minded individuals
  • 36:43 – How you can contact and connect with Harsh

3 Key Points:

  1. Looking for the right location and having a good property matter since you need to be able to reach out to people and identify their needs.
  2. Assess the demands in each of the markets in every location by doing the due diligence such as knowing the projected occupancy rates and identifying risks.
  3. Even if you have the best location, it doesn’t matter if the operator is not managing the property well as it could lead to losing customers.

Get in Touch:

Read Full Transcript

Welcome to the gold color investor podcast with your host Pancham Gupta. This podcast is dedicated to helping the high paid professionals to break out of the Wall Street investments and create multiple income streams. Here’s your host Pancham Gupta.

 

Hi, this is Russell gray co host of the real estate guys radio show and you are listening to the gold collar investor podcast.

 

Pancham Gupta  Welcome to the gold collar investor podcast. This is your host Pancham really appreciate you for tuning in today. I have a fellow immigrant as a guest today, his name is Harsh. He has been very active in hotel investments in the last eight, nine years. And he has a lot of experience. And I know hotel as an asset class is something that people really shy away from given that we’ve gone through COVID. And all the experiences that this industry had to you know, go through because of COVID has made a lot of lenders and investors kind of go away or kind of not touch this asset class. But Harsh has a very different perspective about this and he’s been in this he’s lived through it. And he’s not only doing it more, he’s actually developing grounds of hotels now at this point. So I would really say that anyone who wants to learn about this asset class a little bit more, definitely tune in to today’s show. I would like to talk about Harsh’s background before we get into today’s show. So hey, Harsh is a founding partner of HBR investments. And Harsh brings in global sales and executive management experience through his work for different fortune 500 technology companies managing worldwide sales and business development team. He’s also worked as a senior sales executive for different startups and publicly traded companies. He was instrumental in several merger and acquisitions. Harsh also is an active investor and developer in real estate markets in six different states is developed and co-develop several joint ventures and successfully joint ventures for different multifamily development, Hilton and Marriott Hotels, storage and commercial shopping complexes. Harsch earned his bachelor’s degree in Electrical Engineering from the University of Bombay. So fellow engineer, and he has done he got his master’s degree in electrical engineering from MSU. Hey, Harsh, welcome to the show.

 

Harsh Kejriwal  Thank you for the invite report.

 

Pancham Gupta  Yeah, you know, I’m looking forward to this one, too. I’ve been recording this doing a podcast for over two years now, or almost two years. And I’ve never discussed hotel as an asset class with anyone, and especially given this COVID environment. I think it’s very interesting asset class or something that I’m really excited to talk about with you today. So before we get started, are you ready to fire up my listener breakout a Wall Street investments? ,

 

Harsh Kejriwal  Yes, Pancham. definitely. I’m looking forward to it. And yes, I have majority of my investors in high tech there have invested in Spark and they wanted to diversify. So they have invest with me in my different asset classes that I currently manage, along with the hospitality of the hotel. So definitely, I’m looking to share my knowledge with your listeners.

 

Pancham Gupta  Amazing. That’s awesome. All right. So before we get started, like why don’t you give our listener your tell about your background, and more importantly, the person behind that background and how you got started in this business?

 

Harsh Kejriwal  Very interesting, Pancham. So my background has been primarily in high tech. So I’ve been in the high tech area for about 25 years. And I work for different startup companies. We had two very good, and I worked for a very large company. So like $6 billion revenue, I managed a team of about 500 Professionals, and support bike sales. And in battle I was doing since 2010, passive investing. That’s how I got started investing in single family rental cars to diversify. And I realized amount of time I was putting in the family friend pulls up the return on investment was not there. Right? I was always on the road, managing accounts, keeping up the sales. And so I realized, hey, let’s move on from single family to the commercial aspect of it. A good friend of mine invited me to join and development of our commercial, most shopping complex and we did really well, and the first couple of years, and then we replicated that model, then we moved on to firm our first round of hotel development. And, again, that took off. Then I did my personal investment with the same friend of mine as an LP, and soon I became a general partner with him. And like, within three to four years, we were looking after about six or seven hotels. And we partner with like minded individual. And then we’ve dabbled into multifamily development into storage. So these are the three different classes we were continue to manage. And then we got into the land development. So this was my quick introduction, I would say, going from high tech, we got into the different commercial aspect. And then I never looked back, I left my full time job in the high tech, and started building my own private equity, real estate firm.

 

Pancham Gupta  Awesome. I have so many questions there. You know, quick questions that served on single family have done hotel development and running hotels, then you went into multifamily and self storage, also, now you’re looking into land development. So that’s a lot for someone to really do in a short span of time. So when was it when you decided? Since 2010? You started investing in single family? Is that right?

 

Harsh Kejriwal  Yes. 2009, then we started doing some single family best time. So yeah, it was a good time, there was a report from single family rental property. And they did well, no complaints, per se, but then amount of time I was putting in, like sometimes the heater will go off air condition and the leak and leaving on the road, managing a worldwide sales team that was not efficient. Time management. So yeah, I had a property manager we hired him. They’re making about eight to 10% cash on cash, right. And I didn’t want the headache for that standpoint. So we did the commercial property, which was triple net lease, also lease is there for a long time. And you bring in the right operator, you have the right and then you just leave it and forget pretty much at that point.

 

Pancham Gupta  So when when was that, like when did you stop single family and got into commercial?

 

Harsh Kejriwal  For 2011? We did only for about a year, year and a half. And we exited? Well, we in the sense I exited a single family and then a partner with a friend of mine. Got our own commercial

 

Pancham Gupta  Got it. So when was it that you quit your full time job?

 

Harsh Kejriwal  Oh, I quit my full time job in 2017, about four years ago 

 

Pancham Gupta  four years  ago. So this is an awesome story, right? Like, what I want to ask you now is that which a lot of people go through and I went through it myself, it was really hard for me, given that it was a very high paying tech job that I had to kind of quit with that mindset of constant paycheck coming in, and then going into something where it’s not consistent. But you know, it’s lucrative, but not consistent, right? Your Cash Flow right, as you have the job, and then all the benefits and all that that comes along with it. So was it a very difficult decision for you? Or was it very simple, very easy, like you woke up one day? And you’re like, Okay, I’m quitting today. And that’s it?

 

Harsh Kejriwal  No, none of these decisions are simple. Somebody say, Hey, I woke up and just doesn’t work like that. Right? I was doing in parallel. Anyway, I took the job. And in 2010, we had the high tech company that was working, and they exited. And so I joined another company and I started doing this in parallel. So I would devote like, I will do only one or two deals a years, I don’t have to spend too much time. So I started doing in parallel and had an income stream coming in. And I learned it had a good exit a good partner, gain some experience. And then we started building the portfolio. But at some point, I decided, okay, I’m spending way too much time in my real estate business as opposed to my job. And I cannot keep up because full time job just spending eight to 10 hours and then you’re spending three to four hours on a consistent basis. Something got to go, right. So I decided at that point. There’s nothing constrained coming from my real estate business or I can see the path of growth. So I decided, okay, I have to quit one or the other or become a passive investor. And I thought I wanted to be more of an active build my company and when I decided to quit and started building my own company,

 

Pancham Gupta  got it ya know, it’s something has to give right like you cannot really have to like your two feet into separate boats for a very long time. That’s a recipe for drowning. Alright, cool. So then you you quit your job, you got into this full time. In the meantime, you did a lot of other things like you, in parallel, you were doing this development. So let’s talk about this hotel business a little bit, right? Pre COVID and post COVID. These two are totally different worlds when it comes to hotels. Right? Pre COVID? I’m sure you were involved. Yes, there was a lot of travel Yes, wherever, you know, if you were in a good high growth area, you would have business travelers like if you’re in Orlando, for instance, you would be in you will have a lot of business people traveling there for conferences, and you have tourists, people traveling there for tourist and all those things, that economy is there. But then COVID happened. And Orlando, for instance, probably got the most one of the most economies for hotel business. So you know, and that was true all across the US and the world. Number one question I have is like, pre COVID, like, Where were you in? What cities? And what impact did you see during that time? Like 2020? Really? And then how did you come out? My second question, and third is a follow up to that would be like, what do you see now?

 

Harsh Kejriwal  Well, I think that aspect, I would say we were a little bit of a lucky we had about six, seven assets. And some of the assets, I was more of an LP investor and some of the as a general partner, right. But the good thing is in 2018 19, we had some very good exits from the hotel. So we kind of got a but some of the investment or the hotel that we have was a national park where we really did really well, yes, our occupancy time during the COVID time. And it came down to almost single day. How? Yeah, so but it was only for about two, three months, when the economy opened up, or when people started traveling, in spite of COVID first thing they did was to travel near our hotel occupancy started picking up. And the other good thing is we had to hotel under construction during the COVID time, so we kind of use that time and delayed the opening. So we opened one hotel in 21. January, the impact was less. Yes, we did not hit the projection number. But we were still cashflow positive. And hotel demand just picked up last year. And I pointed one because of the pent up demand, right? As you can see, it’s not anywhere close to what the Pre-COVID level was. And most of our hotel, our select service. They are Hilton and Marriott brand. So they got impacted less as compared to smaller Mom and Pop. But that’s another thing. And again, a select Service. The cost of operation is not less as compared to if you’re running a four season or W or full service, Marriott or Hilton brand. Right? Because restaurant costs and the bar and upkeep of ours is Komatsu, Courtyard Marriott, and Hampton Inn. Right down plus the cost to run that hotels are a lot less 50 60% occupancy, you’re cashflow positive. And we were well above all of 21 and more majority of our hotel, we were cashflow positive. And in fact, we’ve made even distribution to our investors in point one. So Wow. So it was good. I mean, there’s always a silver lining. I would say, we haven’t gotten back to the Pre-COVID. Level, which we expect in 2022.

 

Pancham Gupta  Got it? So most of the deals that you have, they’re like grounds of construction where you constructed or do you you bought some existing properties and you turn them around,

 

Harsh Kejriwal  we’re done new ground up development, and then we partner with like minded companies, where they do the ground of development and we take an equity position. So we have done through acquisition, and I have personally invested in different hotel investment with a friend of mine. So, we have been very selective in what where we go and invest our investors money will go as a personal investment. So again, we look for the right location and the right optic and then venture that so right now we are actively engaged in three grounds of development in Florida area, really were in Florida. One hotel will be coming up in Kissimmee, Florida, near Orlando, one hotel is coming up There are the two hotels, we have did an airline near Jacksonville, Florida. So we have these hotel in process. And then we are in the process of acquiring couple of hotels in Chicago. So value in that.

 

Pancham Gupta  Got it. So it’s very interesting that you talk about these markets, right? Orlando, I just gave us an example. But you happen to be buying there. So that’s awesome. I have a very general question for you like you have Chicago as a market, you have Orlando and you have some other markets where you’re in? What do you look in the market to determine if there is enough demand for the hotels?

 

Harsh Kejriwal  So most of the the Select service hotel that we are buying or building is always on demand driver. So we do our study, we do our due diligence, saying how many number of nights we can get in each of the market in each of the locations. To do our study, we talked to the Hilton or Marriott, and these are the only two brands that we have focused by. And based on our study, we look at the average daily rate, we will be able to get under four and how the market has performed during the COVID. And then we obviously run our number to our our analysts from the number and we come up with a projection. And obviously then it’s a calculated risk. So the market that we picked are not just only for tourists, but it’s heavily based on demand rather from local businesses. And these are all in the path of high growth. But there’s so much demand in that area. Right now hotels are running well about 85% occupancy, even in COVID time they were running around 59% occupancy, and they were all cashflow positive, even in 2020. Wow. So yes, they were not making money what they did in 2018 19. But sector goes to cycle right. And hopefully the worst is over for the hospitality standpoint. And as you can see, the latest suggested report and average hourly rate has continued to go up. Another couple?

 

Pancham Gupta  Yeah. Can you explain what rep par is for audience like people have not heard of that term? I know, it’s it’s not always in multifamily. That would be great if we can go into that.

 

Harsh Kejriwal  Yeah, rep par is revenue per room that you can get for the hotel, an average daily rate is ADR is average daily rate for the entire property. So our rep par per room, like if you have like a 90 room, and you’re able to sell only say 80 rooms or 70 room and prep bar is generally lower than the average daily rate. So if you’re only 80% occupancy, it’s a multiplying factor. So you want rep par and ADR vote to be very hard. So depending upon the location, and depending upon the property, you will see rep par and ADR and that’s how to calculate. So if you look at multifamily, most of them, like monthly quarterly in six months, people leases are more for Nightly Business, right. So more of an operational challenge and our operational rate goes up and down based on the demand. So you can make more money or make less depending on the location, different demand driver during any given point. So that’s where your repeat customer loyalty, the brand new operator, how comfortable you make your clients, all these counts. 

 

Pancham Gupta  It’s like a hospitality business, you know, more than multifamily is very different. Right. So all you have the hospitality, the relationship and all that comes into play and customer service. All that becomes really important, not that it’s not important multifamily, but here it’s, you know, your you have to manage your online presence and the reviews and all that all of that matters quite a bit. So what are some of the things that you have to be careful about when you’re investing in hotels? Like all the things you mentioned, like the growth and all that, like is there anything specific that you let’s say I’m an investor and I want to invest in one of your deals like what do I need to be careful about,

 

Harsh Kejriwal  just like in any real estate, Pancham. Location, plug matters, right? And then most importantly, is the operator operator can make or break because you’re dealing with operational excellence right? Even if you have the best location but the operator is not managing the data properly. You lose customers, but if you do not give them the experience They will not come back. During COVID, we have so many like one of the hotel, which we are in the process of acquiring at this point, and we will be closing end of March, this deal, number of nurses in that hotel was well, about 30 to 40%. Don’t go in, because that bottle is close to a big hospital. These nurses were so comfortable with our staff. They stay there for months at a time. Why? And they literally kept our hotel afloat during COVID for three to four months, when other hotels were running single digit or 10 15% occupancy, we were well above 40 to 50%. Yes, we were not minting money in those three, four months. But those hotels now are well about 85% off. Well about 85% occupancy other than those three months. So if you look at the entire annually, we are well above 65 70%. And we made money doing that, yes, we have the four months of challenging time. But the operation, the staff, local staff made them so comfortable. Not only them, but you have other people staying in the hotel. So it’s kind of became like, for them it’s kind of a family, right. But it’s beyond their loyalty beyond their business. I don’t get involved on stage in day to day operation or a monthly or more on the second equity part. Finance part, I get the report, I get to meet the staff. And we award the staff and I participate in that. But it was it was good to hear all these good comments and people bringing flowers and helping and all that. So it’s good.

 

Pancham Gupta  It’s awesome. Awesome. So let’s talk about financing of these hotels, right, especially after COVID. I’m sure some lenders have who otherwise would have lent on this hotels have not, you know, are not in that position or the window doesn’t want to don’t want to learn it. Has that changed for you?

 

Harsh Kejriwal  Yeah, I’m in lots of ways. Because we have we have we again, the operator that I’m partnering with, there’s not too much of an issue. Again, we do do any acquisition, anything in 2020 2020 21, we did two deals. And those are under construction right now. So loan was asked for additional paperwork, they did their further due diligence, but it was not an issue. Figure out the loan. In fact, it’s a little bit lower rate than what we got in 2019. Because the interest rate. There was not an issue.

 

Pancham Gupta  Got it. Okay, cool. So now I want to ask you about your land fun, too. I have one more question for you like on hotel deals. So for our listeners, would you be comfortable sharing your numbers on your first hotel D like what it looked like from a purchase price? If you remember them very high level? How much equity raise was there? And what kind of cash on cash returns and IRR if you have sold it? If not, that’s fine.

 

Harsh Kejriwal  Yeah, sure, I can share very high level, the first sale we gave was approximately about 10 million total purchase. It was a ground up development. And we did about 3 million equity in that. And that was done between three or four friends very close friends with early on. And we were doing our first investment in hotel we didn’t feel very comfortable bringing in outside investors. So it is very close when we guarantee the loan ourselves which all the projects we do. We sold that hotel within two years. And we had an IRR of approximately 17 18% IRR was higher. But the equity multiple was about one point. So in two years, we did pretty decent GSI or somebody making look at 1.6 Multiple. Yeah. And so but really the and had we kept it short, I made more money, but we didn’t know the hospital’s doing this. Now we did good. We rotated the money, we put it on the internet to and so on. Awesome.

 

Pancham Gupta  That’s great. So cool. Let’s talk about you’re focusing on land. Now given that what’s happening in the market and you’ve come up with this land fund, let’s talk about that. What’s the idea behind that and why you’re doing it and what’s the objective of the fund.

 

Harsh Kejriwal  So a bunch of what we have been doing lately last, I would say about two to three years is focusing on purchasing last large tracts of land. These could be anywhere from 30 acres 40 acres, even as big as about candidate. And again, we buy these land in the path of high growth Austin has been booming Austin area, in fact, not just Austin, Orlando, Tampa, Naples area, Phoenix area. So we’ve purchased land in different areas per family, since I’m based out of Austin. And some of my critique partners are these last two, we purchased land here. And what we do with the land as we get the entitlement, we divide it into different plots and find the best, like commercial in front or back commercial could be a retail pad, site, and hotel. That’s why and then multifamily on the back or single family a lot. And then we work with different developer to make sure this is doable. And then we, once we have subdivided it, we plot it and get the city permits, and get the entire full entitlement done it all to 18 months. And then besides that, I mean, there are times that before we even subdivided the planet, there are a developer who wants to buy the entire piece. And they want to do different use case, they want to just divide into single family instead of commercial in the farm. And they think they can control or do a better development. So we end up selling that entire piece of land that way as well. So, again, identifying the deal, identifying the land is most important. And getting the entitlement process, you have to understand it, you have to work with Land Commissioner, you have to understand the land attorney and work with city to get all the permits in place, like water usage, sewer usage, and easement and everything. So we have a team that does that. And we have been very successful. It’s kind of a risk and reward. Right? So we’ve been we decided instead of buying each line separately, as a separate deal, we’re putting together the land fund where we can bring in diversify, basically investors equity into different pieces of land, and have the money in hand is always better in purchasing land, because most of the land deals you have to close within 30 to 60 days. Yeah.

 

Pancham Gupta  So in this fun, right that you have. So you raise all of the capital first and then go out buy or you’re raising simultaneously and you’re buying so are you paying any distributions for this fun given that it is not cash flowing at all? It’s all backend equity. And this?

 

Harsh Kejriwal  Yes, so very good question. So we in the past, we have done a few distribution. But again, the distribution there’s hardly any, because it’s not even if we say we will give you a graph or anything. So essentially, it boils down to when you learn you’re paying only at the back. So, if we do a fund there could be a cash flow, because we will be exiting out of field the land pieces. So, we are just finalizing if we will be making a catfish distribution along the way, or we will be just doing the split between the investors and the channel partners. So we are looking at both aspect and have been interviewing our investor base, see which one makes more but at this point, we are leaning for equity, we have already identified four or five different tracts of land that is under contract. And we will be raising capital and filling up the fund as we go along. It’s not like you just raise the capital and the money’s in the bank. But majority of capital has already been committed or there will be investor base they’ve already committed a large sum of capital. But we will be going out to the market to bring in additional capital and looking at big chunky.

 

Pancham Gupta  Got it so this is just out of curiosity while you’re talking. I have this question here. So let’s say you have a $50 million fund right and I bring in 5 million the last 5 million you’ve done 45 And the last 5 million is something that I get towards the end of this year. Let’s say you did 45 until the end of this year and then I get five and then by that time you have these four land pieces closed and would that last 5 million be sharing in the upside of this first 45 Or not? Or is it only after they come in and whatever you buy after that they participate in that?

 

Harsh Kejriwal  No so we will be closing the land fund within for students. Okay one won’t be open beyond that because we know our 50% of the fund is already committed. So we will raise and close the fund and we will start next one if need got it. But we will focus on first. Land fund will close it in the first 60 days if at all if it remains open that long. And then we already have land identified and we’ll move on the fund won’t remain open put it this way it becomes it becomes an accounting nightmare when people Yeah,

 

Pancham Gupta  exactly. So So basically, anyone who comes in the fund from the first dollar to the last dollar, they all share all the upside, right?

 

Harsh Kejriwal  Yeah. Because by then we would not have exited any of them. Yeah, and we would not have those in any other map. Because, yeah, land that we’re putting in the contract will be good for good 60-90 days, we really want to make sure that everyone has the same up.

 

Pancham Gupta  Got it. Cool. Well, thank you for sharing all of your knowledge. I know you’ve added a ton of value already. I have one last question for you before we move on to the next part of the show. And my last question, is this totally different? Do you have a morning routine that you follow? And do you think that it contributes towards your success? 

 

Harsh Kejriwal  Besides looking at my phone and looking at my email? No, no, I do the very good on to like reading the news, post reviews and local news. That’s the morning I need to have my cup of coffee in the morning and read the news upside down. And that’s my morning routine for so many years. When I was in high tech or in real estate, I think that’s my morning routine just to be updated on all the news. I used to watch CNBC before but moved on from stock market, I don’t do that much stock anymore. Most of them is ETF. But I stopped watching that. But I do read mostly just look at the news, local news. I want to see what’s going on. So that’s my daily routine. And I think that’s really important when you’re in the real estate market.

 

Pancham Gupta  Absolutely. By Great, thank you harsh for sharing all your knowledge. We’ll be back after this message. If you want to know the top six reasons on why you should consider diversifying outside of the Wall Street, then you are in the right place. I have written a free report for you. It goes into not just the top six reasons why investing in stocks for one case may not be the sound strategy. But also what are the alternatives. Get your free report today on the gold collar investor.com forward slash download. I repeat the gold collar investor.com forward slash download. Let’s move on to the next part of the show. I call this taking the leap round. I asked these four questions to every guest on my show. My first question for you is when was the first time you invested outside of Wall Street? Was it that thing single family home that you bought it

 

Harsh Kejriwal  it was a single family house that there was more personal investment? Yes. 2009 2010 is when I invested outside wall street because that time I was like in high tech and I thought I know about high tech and I would invest only in high tech stocks. No complaints. I mean, yeah. So I would say that was the timeframe. 2009

 

Pancham Gupta  Okay, did you have to overcome any fears when you bought that first thing is family home?

 

Harsh Kejriwal  Not really was. We were on our second? Third home? Yeah, so we kind of know it’s calculated. Not much can go wrong. You’re buying a real estate and buying another home. So yeah, I wasn’t too much mind barrier per se.

 

Pancham Gupta  Got it. Got it. Cool. So my third question for you is can you share with us one investment that has not gone as expected? So if you have any, if you have any?

 

Harsh Kejriwal  Yeah, so we had our share of the like investment, one of the investment and 30 on multifamily that we did we expected to do really well and now occupancy wise and it has his own string of issues and there happened to be this select fire and prepare for like seven to eight units and so it went through some downturn loss. But we then we recovered after that what we projected was 17 18% IRR. In about two years we were down almost to about single digit IRR. But the good thing is when we exited in four years we were available go to 13% IRR so it was not that bad but it was in a very good area we thought we will do really well operation was good but they were unfortunate event but luckily nobody got hurt or anything it was some mischief or some playing with something and got fire in one of the laundry room and that destroyed some the pair unfortunate a lot of work went in but overall we did well. So That was unfortunate though, it reminds me that during the the best of the best investment there can be downside to it right.

 

Pancham Gupta  Absolutely. Absolutely. Cove. My last question for you is, what is one piece of advice would you give to people who are thinking of investing in Main Street that is outside of Wall Street?

 

Harsh Kejriwal  One piece of advice I would say is always invest with like minded individual, right? Invest with people that you trust. So, majority of the investors are passive investors, right? So they are investing with with you, they need to be able to trust you. They’re not the decision maker at that point of time, they are limited partners. So if they invest with you, you have a fiduciary responsibility to your investor. So watch out for those, look for the best location, look for that and go live like So invest in those a very, you see an upside. So if some downturn in the economy hits, at least your capital is preserved, right. So always look for that if you’re trying to hit a home run, that’s different. But if you are one of those investors who are happy with 20% return, as opposed to you want 50% return, then you’re going into risk and reward. So evaluate your risk. Invest accordingly. So that’s what I tell people like, always, don’t just believe in Excel spreadsheet. Do your due diligence, do your homework before. Cool.

 

Pancham Gupta  

Thank you for sharing all your knowledge about hotel industry, and how you look at it. So how can listeners connect with you if they want to reach out? Maybe invest in one of your land funds?

 

Harsh Kejriwal  No, sure. Now I look forward to that. And they can reach out and send me an email at harsh@thegoldcollarinvestor.com. Or they can give me a call at 512-413-0506. And I would love to hear from them. Then happy to answer any questions they may have.

 

Pancham Gupta  Great. Thank you for your time here.

 

Harsh Kejriwal  Thank you, Pancham. Thank you really appreciate it. Really appreciate

 

Pancham Gupta  Thank you for joining me today to learn more about hotel industry and also land development a little bit. I hope you got some value from it. If you have questions do not hesitate to reach out at p@thegoldcollarinvestor.com That’s P as in Paul at the gold collar investor.com This has been Jim signing off. Until next time, take care.



Thank you for listening to the gold collar investor podcast. If you love what you’ve heard and you want more of pension Gupta, visit us at www.thegoldcollarinvestor.com and follow us on Facebook at the gold collar investor. The information on this podcast are opinions as always, please consult your own financial team before investing

Copy of EP #18 - 2 Guests

Leave a Reply

Your email address will not be published. Required fields are marked *