What is the benefit to an investor in using the Jali Platform?

Learn about how to evaluate hotel investments
Gain access to investment opportunities from experienced Hotel operators
Build a portfolio of hotel investments where operational updates, legal docs, and tax reporting can be accessed safely and efficiently in one place.

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Who leads Jali, and what expertise do they bring to the platform?

Jali was founded by a consortium of hospitality experts, which include Sagar Patel and Aakash Patel from Witness Investment and Fred Cerrone and Brad Rahinsky from Hotel Equities. This group represents over 100 years of combined experience. Sagar and Aakash are second-generation hoteliers with a family business founded over 35 years ago and are well-regarded members of the largest network of select-service hotel operators in the U.S.

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Why are most of the investment offerings for Select Service Hotels vs. other types of hospitality assets, i.e., boutique hotels and full service?

This asset class sector has been the most stable historically and is the primary background of the Jali executive team.
Select Service has multiple demand generators and is cash flow focused as compared to other business models due to operating efficiencies that produce higher, more consistent margins.
Select Service hotels as a sector maintained positive returns through the COVID quarantine and are one of the few CRE asset types projected to deliver positive growth even in the current economic environment.

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What is Jali’s role with the investors? With the sponsor?

Jali’s role with the investor is to educate the community about the long-term value received in investing in quality hotels run by experienced management. Investors will feel more comfortable and ready to invest in hotels through articles, news, interviews, and videos.
Jali’s role with the hotel sponsor (general partner in the investment offering) is to assist in the equity/capital raise for their respective investment offering. Jali provides the platform and access to its investor community to a CRE sponsor client. The Jali team also assists with transactional administrative tasks such as ensuring the inclusion of third-party accreditation documentation and the sponsor’s legal documents for each investment offering.

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How does Jali find the deals?

Jali’s founders are well-connected with hoteliers across the country. They only source deals from best-in-class operators with a track record of success. Our founders have synthesized the essential sponsor and deal metrics that create profitability in hotels. Sponsors that place their offerings on Jali have at least 5 years of hotel investment/ownership experience as well as a minimum of 10 years of hotel management experience for their operating partner.

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What is the role of the real estate sponsor?

Source and identify the project/real estate asset
Perform the financial analysis
Create a business plan that uncovers hidden value
Go after, negotiate, and secure the real estate deal
Conduct due diligence on the asset
Secure financing (debt + equity)
Close the deal
Manage the asset through the business plan (leasing, improvements)
Dispose of Assets
Deliver investment returns

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Do I have to be a citizen of the United States to invest?

Yes, investors need to be a united states citizen with a SS# or EIN# for tax purposes.

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How does the investment process work?

Establish an account in the Jali Investor portal.
Enter the investing entity you’d like to use (Trust, LLC, Joint Account, Individual)
Select invest now to place an offer
Review and sign legal documents
Upload accreditation letter or use 3rd party resources provided
Fund investment when prompted by Jali Investor Relations

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How do I evaluate the risk of investing in a Private Placement investment offering?

Private Placements are illiquid investments that often involve a high degree of risk, including loss of the entire investment if the business plan for the asset doesn’t go as planned or projected.
Investment should not be made unless an investor can sustain the risk of total loss of capital.
Investors should consider their financial situation and consult a professional advisor to determine the appropriate investment.

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What fees are common in a private real estate investment?

Promote or carried interest: earned by a Sponsor after the returns (IRR) have exceeded a certain level. Typically this payment is triggered after a project has met a specific goal. For example: after the preferred return is paid and IRR is above 15% IRR.
Fees, task-oriented charges absorbed by the project cost, and inclusion depend on the business plan:
Asset Management Fee: payment for the overseeing of operations and reviewing reports, and making financial decisions, typically a % of either equity or revenue, annually paid
Property Management Fee: can be in-house or 3rd party, typically a % of rental income
Acquisition/Disposition Fee: efforts and costs associated with buying and selling a property, typically a % of the purchase/sale price
Construction or Development Fee: Pertains to development projects or value-add capital expenditures. Typically a % of either the hard cost of construction or total development costs.

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If I invest, how do I exit?

Each sponsor has outlined a business plan for the hotel investment, which often addresses the general timeline for the investment, often called the hold period. Should the business plan be executed according to the forecast, the time to exit would be at the end of the hold period. However, the general partner can elect to exit before or after the intended hold period. Limited Partner’s ownership in the investment is illiquid and dependent on the Sponsor’s decision to exit/sell the asset.

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Does the investor pay Jali any platform fees when investing?

No, Investors do not directly pay Jali a fee to invest.

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What are the responsibilities of the sponsor to the investor?

Provide the investment offering materials and associated legal documentation.
Directly transact with investors via the platform to finalize the investment.
Communicate with the investors via the platform on the status of the hotel investment, including progress made, setbacks, and changes to the plan.
Address any direct questions on the prospective investment with respect to financial projections, market factors, financing terms, etc.

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After I invest, what can I expect?

The Sponsor will be sending quarterly updates on the progress of the asset and investment.
The Sponsor will be uploading tax documents once a year.