Dental, Restaurant, Multifamily and Hospitality Investor Mandate
Dental, Restaurant, Multifamily & Hospitality Investor Mandate Interview
Doctors, new investors and family office principals who want to see how an operator mixes real estate with operating businesses and picks deals.
What this talk covers
The guest, a doctor who runs a real estate and operating business firm, describes a mandate built around hospitality, multifamily, Five Guys Burgers and Fries franchise operations, dental operations and emergency room operations. The guest explains why operating businesses were added to real estate. Evergreen businesses that hold up in a recession produce cash flow that keeps a team in place when the real estate cycle turns down.
The talk then covers what the firm wants to source now. Examples are virtual kitchens placed in restaurants and Veterans Administration leases that the guest describes as government backed. The firm also plans co-GP hospitality deals and multifamily upgrades. The guest closes with a simple rule from their father. Do not invest in an area you do not understand, and back an operator with skin in the game.
The 5 big lessons
- Pair real estate with operating businesses. The firm combines hospitality and multifamily with Five Guys franchises, dental operations and emergency room operations. The guest says owning many Five Guys units makes for a stable, cash flowing asset.
- Evergreen businesses protect the team. In a real estate downturn, a builder may have to let the team go because it cannot afford to keep them. Resilient operating businesses produce cash flow that supports the team through bad times.
- Non-cash losses against operating income. The guest describes a tax approach that pairs real estate losses with operating business income. This is the guest's approach and not tax advice. Many investors talk to a tax advisor about how an approach like this might apply to them.
- Current mandate: resilient, contracted income. The guest names virtual kitchens placed inside a friend's six hundred restaurants. They also name Veterans Administration leases that the guest describes as government backed. Lease terms vary, so many investors have an attorney review each lease. Hospitality is mainly co-GP, and multifamily deals focus on upgrading a property's class.
- Stay in your lane and back operators. The guest advises against investing in areas you do not understand. Find an operator who has skin in the game, a track record and the knowledge, and let that person earn their profit. Richard adds that you should control only what you are an expert in.
Worth quoting
"Please do not invest in an area that you do not understand yourself. That is my number one advice."
"You find somebody who understands the business. You verify that this person has skin in the game and is producing money in the business."
"Do not be greedy. Do not try to get all the profits. Let the person who has put ten thousand hours into the business make some money."
Facts from this talk
- The guest's firm focuses on hospitality, multifamily, Five Guys franchise operations, dental operations and emergency room operations.
- The guest's friend has six hundred restaurants and was already deploying virtual kitchens in them.
- The guest describes a tax approach that pairs non-cash real estate losses with operating income.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Dental, Restaurant, Multifamily & Hospitality Investor Mandate Interview. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around tax loss treatment, government lease terms and co-GP structuring. Do not use AI to write your own legal agreements.
Related questions
- How do I close a funding round?I close a funding round by focusing on investors who fit the opportunity and moving each interested prospect through clear, consistent follow-up.
- What documents do investors request during due diligence?Prepare a clear, organized package covering your operations, investments, compensation, team, and track record.
- How do I raise capital for my business?I raise capital by building a repeatable system for attracting the right investors, establishing credibility, and developing relationships before asking for money.
Questions about this video
Why did the firm add operating businesses to real estate?
Real estate builders can lose their team when the cycle goes down. Evergreen businesses that hold up in a recession produce cash flow that supports the team in bad times.
What deals does the guest want to source now?
The guest mentions virtual kitchens in restaurants and Veterans Administration leases that the guest describes as government backed. They also plan co-GP hospitality deals and multifamily upgrades.
What is the guest's main advice for new investors?
Do not invest in an area you do not understand. If you want exposure, find an operator with skin in the game and a history of success, and do not be greedy.
Put this into practice with the family office fit check. See all investor mandates resources.
