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    The Hidden Goldmine in Pet Hospitality Investing

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    Pet hospitality sits between commercial real estate and an operating business, which is exactly why it is mispriced. Robert Capelli describes the property-level economics and what a lender actually holds as collateral.

    • #pethospitality
    • #commercialrealestate
    • #privatecredit
    • #cashflow
    • #nicheinvesting

    From the full episode

    Inside a New Private Credit Asset Class: Dog Boarding and Kennels

    Was able to put 35 million together to build big houses in nice neighborhoods and then have our investors sell those and so that I've been a little bit a part of it since the beginning.
    Listen to the full episode with Robert Capelli

    Frequently Asked Questions

    What makes pet boarding different from other real estate?
    Robert underwrites it like a motel: there's the underlying real estate the business sits on, and on top of it an operating business renting doors daily, 365 days a year. That creates a dual asset structure — hard collateral plus operating cash flow.
    What are the property-level economics?
    Daily rates have moved from about $42.50 a night to over $50, so revenue per door is rising, and Robert cites EBITDA margins historically running around 40 percent.
    How is the lender protected?
    Canine Capital takes a first lien position rather than sitting subordinate, and implements a daily cash sweep through the borrower's point-of-sale system, along with step-in rights on the operating business.

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