We start by looking for reasons to walk away.
An adversarial approach to acquisitions — every deal has to survive us trying to kill it before a dollar is committed.
The Three Gates
Every acquisition must pass three mandatory, independent filters. A strength in one gate never compensates for a failure in another.
Market Quality
Targets markets with RevPAR above $120, a positive occupancy trend over the trailing three years, and limited new supply.
Operational Gap
Requires NOI at least 20% below the market comp set — evidence the underperformance is fixable, not structural.
Experience Asset Quality
Demands unique architecture, walkability, and photography-worthy spaces; rejects generic or fully commoditized product.
Underwriting Principles
We reconstruct NOI from actuals rather than accepting broker projections, weight self-operation economics over third-party management fees, and pursue geographic diversification across the portfolio.
Self-Operation Economics
Model the fee drag.
Third-party fees are charged on revenue and GOP, not on performance delivered. Adjust the inputs to see what the fee stack costs a single asset each year — and what that compounds to at exit.
Property
Annual NOI retained by self-operating
$239,693
Self-operation retains this much NOI per year that third-party fees would consume.
Third-Party Fee Stack
Drag
Context
Illustrative model only. All inputs are user-supplied assumptions and do not represent PivotPt Capital fund data, actual or projected property performance, or any offer or projection of returns.
Acquisition Pipeline
- 01
Sourcing
- 02
Initial Screen
- 03
Adversarial Underwriting
- 04
Site Visit
- 05
Investment Committee
- 06
LOI Execution
Request Fund Materials
Minimum investment $250,000. For accredited investors only. Includes the PPM, financial model and underwriting package, property-level due diligence summaries, LP subscription documents, and investor Q&A call scheduling.