This is from Lincoln’s new podcast: Funds that Won!
Let’s get started!
Bobsled to VC to RE
Lincoln: Koloa, tell us about yourself and your firm!
Koloa Wolfgramm: I started my career as a professional bobsledder on team USA, but soon pivoted…
“I decided that I shouldn’t peg my income to sliding down a mountain of ice in spandex.”
I went to school then started a small tech company.
After, I excited and did VC with First Round Capital.
Then, in December of 2021 I decided I wanted to do real estate private equity and started Wolfgramm Capital!
In the last 13 months, we’ve done $220 million in acquisitions with an emphasis in the hospitality space.
Lincoln: What a journey! Let’s hear about the different deals you do.
Koloa: We focus on hotels and resorts. Within that vertical, we focus on the luxury high-end hotels and the cheap ones, but nowhere in between.
Here’s why: Luxury gets massive developmental returns because their cap rates are so low.
However, luxury hotels are the first to get hit in a recession. But cheap hotels’ vacancy rates are not as affected. This is how we offset our five-star hotels.
Lincoln: Do you have a target allocation percentage for each group?
Koloa: Yes, our 10-to-1 ratio means that for every 10 limited-service hotels, we have 1 luxury.
So, that comes close to about a 50/50 allocation between the 2 groups when we compare dollar to dollar.
Koloa’s Advice to You
Lincoln: We’ve got a lot of emerging managers watching this interview that don’t have as diverse a background as you do, what’s your advice for them?
Koloa: In general entrepreneurship and in the fund world, I see people repeatedly take a “problem first” approach rather than a “tools-based” approach.
Here’s what I mean:
They’ll say, “Well, cap rates are starting to expand in this area so let’s go with multifamily.”
Or, “Self storage is underbuilt in my area, I’m going to specialize in that.”
What they should do is assess which tools they have or what they can already do well, and go for that.
Look around and say, “What are the tools that I have that are available to me? Where is my competitive advantage?”
My father was in the hotel business, so I was basically raised in a hotel.
“I chose that asset class because I was already 3 steps ahead.”
Lincoln: I couldn’t agree more.
I’ve seen hundreds of emerging managers come through the program over the past couple of years and it’s all about taking an inventory of your resources.
This includes the relationship captial you have, your background, and your capacity to effectively allocate those resources.
Today, we see that this fund won because of Koloa’s drive, his unique investing strategy, and his “tools-based” approach!
Thanks for stopping by,
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DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the author