Andrew Jobst: Knowledge, Intelligence & Curiosity — The Secrets Behind a Boutique LP Equity Provider.

On this episode, Kevin chats with Andrew Jobst from HG Capital, a firm that since 1995 has specialized in providing joint venture equity for value-add and opportunistic real estate investments throughout the Western US, uniquely investing $8MM and less per transaction. This deliberate strategy to place equity into a market portion with less buying pressure, essentially "buying where others are not," has proven very successful over their 25-year history. Andrew brings exceptional intelligence and education, holding a B.S. in Biology, B.A. in Economics, and Master's in Engineering Economic Systems and Operations Research from Stanford, applying insatiable curiosity and thoughtfulness to structuring over 100 investments with completed value exceeding $2 billion. The conversation covers the wall of capital in the market and implications for real estate, why capital is not on the sidelines because of COVID-19, and the idea that there is no real estate market but only a basket of discrete deals the media likes to call the market. They discuss why HG's smaller equity checks and platform represent a vibrant strategy, COVID-19 as a "grand natural experiment" catalyzing and accelerating changes, incentives as central to partnership alignment and deal structuring, "Greener Grass Syndrome" where operators drift into competitors' spaces, and the critical question of asking developers why they like a deal now.