The Silicon Review
“Our operators are very talented in the field of revenue maximization and price yielding.”
Thomas Black, a 13-year veteran, author, and physician, was looking for a way to provide alternative income streams for himself and his colleagues to create freedom from burnout in the healthcare space. His brother Tim Black, on the other hand, spent 30 years as an executive in hospitality, operations, and real estate development. The motivation was partnering with doctors and other high net worth individuals, who are tired of trading time for money and are interested in exploring passive income opportunities through real estate investing and tax efficiency. This is how Napali Capital was established.
Napali is a real estate investment company that partners with physicians to increase their wealth beyond traditional investment platforms. It works with over 1000 investors in 43 states and is currently valued at around half a billion. The company was recently ranked #21 on the 2020 Inc. 5000 list of America’s ‘Fastest-Growing Private Companies’ and again made to the list of the top 500 in 2021.
The Black brothers founded the company in 2016.
To highlight and further understand what Napali Capital stands for and seeks to explore in this segment, I sat down with Thomas Black (co-founder), who serves as the company’s Managing Partner. Below is an excerpt.
Napali Capital strives to educate investors on every aspect and phase of the acquisition process. The company reviews, analyzes hundreds of opportunities, before bidding on a few, to acquire a property that will deliver on its financial goals.
“We focus on U.S. markets with strong population and employment growth to offer our investors opportunities that will generate consistent cash flow and long term appreciation.”
“Besides, we have an in-depth underwriting protocol. Most deals are off-market deals presented from the prior seller we have acquired from, or by brokers with a previous relationship, who are aware of our reputation to close and close efficiently. We underwrite hundreds of deals each year and our close rate is in the low single digits.”
“Importantly, our operators are very talented in the field of revenue maximization and price yielding. We use many aspects of the hospitality industry and leverage this into multifamily housing where the software and usage of these practices are not as common. In our markets and vintage of asset, it creates a competitive edge outpacing returns.”
Private Placement Memorandum
Napali Offering Memorandum is a 45-page document that spells out each offering in dense detail. In addition, the company offers podcasts and zoom calls for most offerings to explain the deal, the asset, the attributes and answer direct questions from investors.
“All investors are welcome and encouraged to contact either me or anyone at Napali Capital for any questions. We maintain an intimate relationship with all investors and require a personal call for every partner before getting into our communications database. We strive to align our goals with our investor partners.”
Over time, opportunity and experience has allowed Napali Capital to expand into other lines of business. The Napali Construction Group is capable of handling project management and renovations; the Napali Residential Group manages properties in the Southeastern United States. The company has recently launched Napali Escapes which is a unique spin on lifestyle properties and the opportunity for investors to partner with us in luxury homes in ideal locations that they can stay, play and invest in.
Leadership | Napali Capital
Thomas Black, Co-Founder & Managing Partner
Thomas is co-founder and Managing Partner of Napali Capital, author of “The Passive Income Physician: Surviving a Career Crisis by Expanding Net Worth,” “The Tax Cure”, and a board-certified emergency medicine physician.
He began his career in real estate overseeing residential mortgage loans at Wells Fargo Financial as an undergraduate. Following graduation from medical school, he began investing in real estate, eventually shifting his focus from single-family to multifamily housing before co-founding Napali Capital.
Thomas is a 13-year veteran of the U.S. Armed Forces. He earned his medical degree from the University of Texas Medical Branch in Galveston, Texas, where he was selected as a member of Alpha Omega Alpha Medical Honor Society and graduated with honors. He then completed his residency at Indiana University Emergency Medicine Residency Program in Indiana, and an MBA at the University of Tennessee, Haslam College of Business. He continues to practice emergency medicine and serves as president of the 24-Hour Physician Group at Baylor Scott and White Emergency Hospitals.
Tim Black, Co-Founder & Managing Partner
Tim Black is co-founder and Managing Partner of Napali Capital and brings 32 years of executive-level management experience to the company.
Most recently, he served as Chief Operating Officer of Great Wolf Resorts, where he maximized revenue through pricing, demand, digital marketing, and implementation of new revenue streams and predicted consumer behavior and pricing strategies for the entire portfolio of resorts. He worked directly with private equity and served as a key player in resort development assisting in planning, spatial layout, guest traffic flows, and design—aimed at maximizing revenue per square foot and efficiently control operating costs. Mr. Black was instrumental in growing the company’s U.S. portfolio by eight resorts and increasing EBITDA by 49 percent.
Mr. Black also worked for Six Flags Entertainment, where he served as Park President for Hurricane Harbor, Wild Animal Safari, and Six Flags Great Adventure, the company’s largest and most profitable asset.