Syndicators are accountable for the equity entrusted to their care by their investor partners. That’s what accountable equity is all about. In this episode, we speak about it lengthily with nationally recognized hospitality executive Josh McCallen.
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We start the show by knowing Josh’s journey towards the hospitality industry and how he was able to seal luxury residential and hospitality construction programs worth $150M. Josh is behind a world-class hospitality business with exceptional resort operation and teams. He also talks about their incredible story and mission of hospitality being a ministry. He then focuses on accountable equity, which is built with the investors in mind. Click the play button now and be learn tons of wisdom about business and teams today!
Key Points From This Episode:
- Josh shares his mission in life: work in a ministry.
- Josh is a husband and a father of ten children.
- Josh lived in Europe and was able to run a monastery-turned-hotel. When they returned to the US, he got into land development.
- Josh shares that he lost his development business when the economy got bad. But when the economy started to be better, he joined the family office and took over their hospitality ventures.
- After the success of the legacy resort, he built vibrant vertically integrated companies: capital syndication, operations, and an elite hospitality company.
- What is accountable equity?
- Why do investors seek really powerful commercial real estate?
- Josh shared 270 people with them from different parts of the world.
- Syndicators build their own private equity group that chooses its asset class to build investors.
- Capital hacking takes human capital and cash capital to change the world and to create good.
- Josh talks about tax incentives for investors in real estate.
- How did Josh build his team for his hospitality company?
- The three virtues that Josh’s hospitality business follows: the joy of service, humility, and ministry.
- Why it is important to seek humility?
- Josh discusses the frequency of meeting with his teammates.
- How does Josh prepare for a downturn?
- How did Josh recently improve his business?
- Josh’s best source for meeting new investors right now.
- The number one thing that contributed to Josh’s success.
- How does Josh like to give back?
“About 10 years ago, with the support of that family (office), we turned around one of their tired old properties they bought to tier down, we turned it into a legacy resort. And, it ended up becoming nationally recognized, top 25 hotels in the country, top 100 in the world, all because we focused on not only making it pretty but treating people with love and experiencing what we call the hospitality ministry.” [0:05:44]
“There’s another way to see it (syndication), that is the core that families get access to assets that they could never buy on their own. They have a K-1 tax document that allows them to benefit like a partner as if they did the deal themselves at their little investment level.” [0:08:42]
“Truthfully, what we built here is a boutique private equity group and in a way, that is what every syndication is doing.” [0:09:29]
“As soon as you’ve taken investment money, you need to return, yield, and principal back to investors on promise or before. And, you need to use real estate to make that happen.” [0:10:19]
“Capital hacking takes human capital and cash capital to change the world and to create good.” [0:10:45]
Links Mentioned in Today’s Episode:
About Josh McCallen
Josh McCallen is a thought-leader, brand strategist, and resort revivalist. Over the past 20 years, he has generated over $100,000,000 in revenue in the industry, as well as in hospitality and weddings. What started as constructing luxury beach houses for celebrities, evolved into leading his first large-scale resort development company to international notoriety, gaining both national recognition as a top 25 hotel out of 50,000 American hotels and recognition from The Wall Street Journal, then joining Melanie, his wife of 23 years, in a partnership to form Accountable Equity and VIVAMEE Hospitality.
Accountable Equity offers high-yield private opportunities to investors of all levels, while also providing a learning community of peer investors. This unique investment model has positioned Melanie and Josh as thought leaders in the real estate investment world.
Josh is also CEO of VIVAMEE Hospitality, a vertically integrated management company and value-add land developer that oversees all of Accountable Equity’s assets. VIVAMEE specializes in identifying distressed properties with history and reviving the “soul” of those properties to create an experientially beautiful “home away from home” for their guests. Josh’s innovative approach to real estate investment has uniquely positioned VIVAMEE to set industry revenue records amidst a global pandemic and recession.
By Christmas 2021, VIVAMEE is expected to have 5 resorts under management with a moving target of 100 resorts by 2035. Renault Winery Resort in South Jersey is quickly becoming recognized as one of the premier wedding venues on the East Coast, in addition to boasting a winery, hotel, golf course, and variety of restaurants. The beautifully revived and restored Kent Island Resort, just outside of Annapolis, is scheduled to open in Summer 2021.
Josh’s heart for servant leadership is infused in all that he does. His team’s number one priority is to develop the strongest hospitality team in the industry, one that is built on servant leadership and a commitment to honoring the dignity of every guest. In the past 10 years, Josh and his team have improved the lives of over 5,000 employees through their emphasis on reviving the souls of their staff. His executive team are experts in all business areas and their commitment to training staff in “soul-full” service not only improves their team’s performance but also translates into an exceptional guest experience.
Josh has appeared, collectively, in over 500 million homes worldwide, discussing countless real estate and investment-related topics. He hosts two podcasts: “Capital Hacking,” focused on understanding, developing, and wielding monetary and human capital like an expert, and “Wealth Building with Friends” which he co-hosts with his wife, Melanie, alongside husband and wife couple Bob Wells and Usha Patel. “Wealth Building with Friends” involves thoughtful conversations with everyday hardworking families about their unique journeys to financial freedom.
In addition to all of Melanie and Josh’s investment and revival endeavors, their greatest adventure is parenting their 10 children ages 1 to 21. The McCallens reside outside of Philadelphia, Pennsylvania.
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