Frequently Asked Questions

Pacilio Capital works with a small number of co-investment partners — individuals, families, and family offices who want direct, deal-by-deal ownership in hospitality real estate alongside an operator who has his own capital in every property. We are not a fund, and we do not run a pooled vehicle.

Each opportunity is a private arrangement between Jonathan and the partners on that specific deal. Fit matters more than a checklist: we look for partners who understand a long-hold, cash-flow-first model and who value operating proof over projections. The best way to find out whether that's you is a candid introductory conversation — no obligation.

Typical co-investment begins at $50,000 per deal. Keeping the partner group small on each property lets Jonathan stay personally involved with everyone in it — the same person who underwrites and operates the asset is the person you talk to.

That depends on the deal, and we deliberately do not publish target return figures on this site. Partner returns come primarily from ongoing cash flow from operations, supplemented by return of capital through periodic cash-out refinances as assets appreciate and debt amortizes.

For any specific opportunity, the property-level underwriting, the terms of the arrangement, and the risks are laid out in the deal materials we share directly with prospective partners — closing statements, platform revenue reports, and the operating model behind the property.

We operate a perpetual-hold model. There is no target sale date and no fund wind-down clock — we acquire assets we intend to own indefinitely and compound through operations.

Capital is returned two ways: ongoing distributions from operating cash flow, and return of principal through proceeds from periodic cash-out refinances as assets appreciate and debt amortizes. Neither is guaranteed, and the timing of a refinance depends on asset performance and credit market conditions.

Partners should plan accordingly. These are illiquid, long-term positions with no secondary market for a partner's position and no fixed date on which capital is returned in full. If you need a defined exit window, this structure is not a fit — and we would rather say that upfront than manage a mismatched expectation later.

Yes — always. Every property Pacilio Capital has acquired to date was bought with Jonathan and Kim's own capital, and Jonathan co-invests in every deal he brings to partners. We believe alignment of interest is non-negotiable.

When we win, you win. We would never ask a partner to take a position we weren't willing to take ourselves. Our skin is always in the game.

Direct ownership of income-producing real estate can carry meaningful tax efficiency. As a co-owner, your share of the property's deductions — depreciation, mortgage interest, and operating expenses — typically flows through to you, and on qualifying assets we use cost segregation studies to accelerate depreciation in the early years of ownership. The exact treatment depends on how a given deal is structured, and you'll receive the annual tax reporting appropriate to that structure.

This is not tax advice. We always recommend consulting a qualified tax advisor about your specific situation before committing capital.

This is where our institutional risk management background becomes a genuine differentiator. Before any acquisition, we stress-test our underwriting against multiple downside scenarios — reduced occupancy, compressed RevPAR, rising interest rates, and prolonged downturns.

Hospitality assets in premium leisure markets, particularly in supply-constrained destinations like the North Carolina mountains, have historically demonstrated resilience during economic downturns as domestic travel tends to hold up well even when consumer confidence weakens.

Because we are not working toward a sale date, a soft market does not force our hand. Our response is to keep operating, protect cash flow, and wait. We are structurally never a forced seller.

Hospitality is the one asset class where operational excellence directly and immediately translates into financial performance. Unlike multifamily or commercial, where returns are largely determined at acquisition, hospitality returns are actively created through management, guest experience, and strategic repositioning.

We believe this creates a meaningful opportunity for operators who bring institutional discipline to an asset class that has historically been managed informally. Our 5x revenue improvements on repositioned assets are a direct result of this approach — not luck, but a repeatable process applied with precision.

Two ways. If you'd like to know who you'd be working with first, request the Operator Profile — Jonathan sends it personally. If you're ready to talk, complete the Partner Inquiry form and Jonathan will be in touch within 2 business days to set up an introductory conversation about your objectives and any current or upcoming opportunities that may be a fit.

There's no obligation — just a conversation between two people who take capital seriously.