It's Personal Stories, A Hospitality Podcast

Tracy Prigmore, Founder, TLTsolutions & She Has a Deal interviewed by Lan Elliott

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Tracy shares how she became one of the hotel industry’s first African American female owners, and how she built a network that includes the industry’s top CEOs, just 6 years after moving from healthcare into hospitality.  She shares the inspiration behind the She Has a Deal pitch competition, a non-profit she founded that encourages and teaches women how to become hotel owners.  She also discusses some of the challenges that women and minorities face in accessing capital to become hotel owners.

Lan Elliott:

Hello and welcome. I'm Lan Elliot with D e I advisors, and today I'm really pleased to welcome Tracy Prig Moore. She is the founder of T L T Solutions, a real estate acquisition and development firm. And what's unique about her company is its central mission to empower people to build generational wealth. By educating and opening the door for aspiring investors, and if that isn't enough, in 2019, Tracy started the She Has a Deal or Shad pitch competition to help women become hotel owners. Welcome, Tracy.

Tracy Prigmore:

Hi, LAN. How are you? Good morning.

Lan Elliott:

Tracy, I know you were a successful healthcare executive for 25 years. How did you become an owner in the hospitality industry?

Tracy Prigmore:

When I was in healthcare, I invested in real estate as a what I called a money making hobby. And I started out with investing in single family homes. So I would buy single family home, fix it up and rent it out for passive income. So this was a strategy I learned about through reading Rich Dad, poor Dad. And My goal was just to create a greater amount of retirement income, and when I realized that I really loved real estate and it was really fun to create this passive income, I wanted to graduate to commercial real estate. And so I was looking for an asset class in commercial real estate that I could get excited about. And because at the time I was traveling extensively for work, I stayed in a lot of hotels, so I felt like I really knew hotels and I had become this hotel snob along with some of my colleagues. And then when I found out I took a commercial real estate class and found out that hotels were a special asset class and that these hotels. Franchises and that you could own a hotel. And so that's really how I began the pathway to hotel ownership was really about investing in real estate, creating wealth, and identifying what asset class I wanted to use as a vehicle for building that wealth. And I liked hotels, so I naturally gravitated toward hotels.

Lan Elliott:

A great story. I find it really interesting. There are a lot of hotel, real estate investment companies, but I think what's really interesting about yours is that it it offers people an opportunity to invest, but also you help other people become investors, and you also help. Lift up other people who are trying to get into the business and having trouble. And I know I know you've spoken in the past about how it's not easy for a woman or a person of color to, to navigate the real estate field. Can you share maybe a story or one you've encountered

Tracy Prigmore:

Essentially I think one thing that people have to understand is that when you're getting in specifically, into commercial real estate, where. Cost of access is very high and requires a high net worth. It requires high liquidity. And if we think about the history and we think about women and we think about, black people in particular I can speak about cuz I am one is that we have been. Kept from building wealth. So with the wage disparities with laws that even prevented blacks from owning homes, home ownership is the biggest source of people's wealth, and that helps to grow the wealths and kids to college, et cetera. And it goes on from there. And so what people have to understand is that our as a collective. gender as well as race, our net worth and liquidity. Cash liquidity is a lot lower, so it may not qualify. for these loans or the, the equity that's required to get into commercial real estate. So it's very difficult to get in. And then, because we haven't been major players in it because of those wealth inequalities, then people haven't seen women owning developing hotels or people of color owning and developing hotels. So they don't, they haven't seen it, so they think. They can, they do it, it must be risky. How do I, how is this possible? And it's some, is this unconscious bias and then some is intentional. They don't want to see women and people of color getting ahead. But I think for the most part, I'm gonna say it's unconscious bias. You, if you don't see it, you start to wonder if it's possible. And so that causes the sources of equity or the sources of capital. to put a higher risk assessment. When a person of color or woman is applying for these loans and they create different terms or they don't allow it at all, they're not willing, to take the risk cuz they see it more riskier than what they've traditionally seen. Which is this mainly white, male or other? doing deals and they've been successful saying must or they will be continuously successful. But bringing in a new entrance seems, woo. Wait a minute. Can, I don't know. I haven't seen it. I don't know if they can do it. So just to give you an example too, is that relationships and having relationships can be. A help, but if you're in a certain race or gender, you may not have those relationships to help bring you through. So I met this couple recently who is moving into hospitality and they're experienced multi-family developers and they told me this story and I've heard similar stories all the time, but they were telling me how when they closed on one of their development, Their attorney looked at the terms of their loan and said, oh my goodness you were ripped off. You should not be paying these kind of rates based on your experience, based on your credit, et cetera. Let me introduce you to someone at a bank where, I'm, I think he was on the board or some relationship. Call this person and talk with him. Tell him what you're doing and for your next loan, talk to him about. and miraculously, because of this relationship with the lawyer and calling the banker, they were able to easily get in the door apply in the same manner that they had before with less, with less, due diligence and digging that the other banks were doing that were really taking'em over the ringer with paperwork and show us you can do this and that, and this particular banker on a relat. Looked at their financials, looked at their background experience, and the next day approved them for the loan. It's these barriers to entry because, it is relationship driven, but it's also this unconscious bias of, Hey, I haven't seen this type of person doing it. I don't know if they can be successful. And so I'm gonna pull back. I'm gonna say no, I'm gonna, I'll pass. I've heard that before. From capital sources I'll pass or they'll put terms on such that the hurdle is high, that you can't reach it so you don't go forward or you go into it, but it puts you at a greater risk as a developer to succeed. So it's not a balanced equitable industry as of yet. And I'd like to see that change.

Lan Elliott:

And you've been doing a lot of work towards that and you've been really successful doing your own deals over the last six years. Can you share some of your, what you consider the keys to your success?

Tracy Prigmore:

Yeah, so when you say that, I go am I, because I thought by now, cause some people say, oh, did you ever think you'd get this far? I'm like, I don't think I'm far enough. I thought I'd have three times as many hotel. By now. And but I have to always remember right, to be grateful for what I have accomplished. But I, I do always say that I don't think I took enough risk early on in my career. And other people would, say, how can you say that? But I honestly believe that I, I've held myself back a bit, but nevertheless I guess the key to the success that I've had is just being resilient, right? And just being diligent and not giving up. So I started the journey way before I actually was able to acquire my first hotel, so I think I may have told you the story before, how I woke up in a hotel. It was a Hampton Inn in Florida and had the epiphany after reading. The franchise with Bill Marriott taking my real estate, commercial real estate class, then I should buy a hotel. And so I went, fervently, right? I was, I found this conference, I went to this conference, started going to conferences, going online, reading, try to talk to anybody who would talk to me, and I put a hotel under contract, like a year later in my hometown and I was like, yeah, I'm gonna do this. And and I failed. Meaning it was right around, oh. when the great financial crisis was happening. And I went the bank gave me the loan, but they said You have to get an sba. So sba Yeah, SBA said no, like after taking me through months of due diligence, they voted through the C d C and said it couldn't be successful. We're in a recession. And so they said no. And so I will say that I did take it hard in a sense cuz I just knew I was going to own this hotel. I put in all the work, I'd done all the research and it didn't happen. So I went right back into my job. I was still, I was working. I always, I was at the same time, but I think it's really about educating yourself, not giving up, and you have to change your mindset. So when I didn't have a mindset that I could do it I didn't do it right because if your mindset is you can't do it, then you don't ever even try. So it really was my success is really about, waking up every day and changing my mindset to say, I can do this, I can do this. It's about how, so I personally didn't have all the money, but I learned about syndication in my real estate class and I studied syndication and went to different classes and read. And so I tried it and it was very challenging, but I was able to get there. So it really is a mindset because my first hotel deal that I syndicated, I put it under contract. I needed 3.6 million. I had about$600,000 the court and red ready. And so I had no idea where the money was gonna come from, but I, I believe. that I could raise it. I had a strategy. I had done my research, and all I had to do was to try, and I was successful with a lot of bumps, but again, I didn't give up every step of the way where a hurdle was. I would back up like, I used to run track, right? You'd back up and you try it again. Until you cross it. and

Lan Elliott:

Tracy, you've mentioned going out there and talking to people, you've been in hospitality about six years now. yes. You have an incredible network that you've developed. Can you share how you developed that network?

Tracy Prigmore:

So developing a network is really about what value can you add to other people? I've always been a servant leader. And so as a servant leader, you're always looking at how can you help other people? So really building the network was really just creating something of value for the industry. And that was, she has a deal. So when I saw that there was a need because of the experience I had getting into the market, penetrating the market. I could see clearly where the industry could change if they really wanted to see more women and people of color owning and developing hotels. And so by seeing this need and, taking the time to express it, to the different leaders at the at, I went to Marriot, I went to Hilton and told them like, Hey, listen, you have some great programs, but here's where they're falling short. And so that, by, talking candidly and by taking the time I was able to get to know some of the industry leaders, but as I figured out that, I needed to do, she has a deal because I could clearly see it and no one else, cuz they hadn't gone through that experience. Although they were enthusiastic and excited about what I was talking about, they had not experienced it and I knew God was calling me to do it. So by just bringing something of value to the industry. You naturally meet people who are like-minded and share that mission or that vision and then, you're, you just naturally form those relationships. And I would say that's how I did it in healthcare. That's how I've done it in hospitality to more of a greater extent, hospitality because I feel like I didn't take advantage so much and advocate as much for. on the healthcare side, and I said, if I'm going into a new industry, I'm going to let a go of, I'm an introvert, so I have to let go of whatever fears or apprehensions that I have. I have to, talk myself again, mindset, talk myself into saying, Hey, okay, I'm gonna go and talk to people and engage. And so it really is. Looking to help other people. And networking is not about going to people when you need something. It's really about helping other people and solving problems and just, people naturally want to be a part of your network when you do that.

Lan Elliott:

Let's talk about, she has a deal since you mentioned it, and it's how I met you. You've been doing such wonderful work. In fact my new thing is to tell people when they're looking for young people to hire, I said, you should watch the, she has a deal pitch competition. Those women are incredible. And if you're looking to hire someone, you could see what they can do with their incredible pitches. Can you share a little bit? What are the components of She Has a Deal and how it started?

Tracy Prigmore:

Sure. So I started it really out of the pain that I had and the experience I had getting into. Ownership. And so I knew other women were interested in ownership because they would come up to me and say, Hey, can we have lunch? Can we have dinner? Can share with me how you got started? And they'd say, Hey, I've been to this conference. I've been to that conference, and I still don't know where to start. Yeah. And so I could feel the pain because I'm like I, the exact same thing happened to me. Maybe one of the differences for me is I had a career. Where I had gone through consulting, and in consulting you would learn how to take all these complex things and create frameworks and methodologies. And so I did that for myself and for my team. And also for my investors, just to understand like, how does this hotel ownership process work? So I created the nine step Hotel investment roadmap, and I thought other women could benefit, because it's taken this complex thing of ownership and breaking it down into these manageable pieces and a framework that, that starts okay, this is working, this comes together. And so when I conceived of, Hey, what's the gap? Or what is needed for these hotel brand companies. They say they want more women. They say they want more people of color, and I've been to all of their, development days that they have focused on minorities and the one for women and people of color. And I've been to all of them and I felt like this is really good. But there's a whole bunch of things here that are missing. And so that's what she has to deal with about closing those gaps. And so what I knew was important was, number one, we wanted to expose and inspire young women to pursue ownership because ownership really is the new glass ceiling. And so we wanted to influence them and say hey, here's a profession. here's the career that you can pursue. So we could change the trajectory of their career early on. So that's what was number one. But number two, which is most important, is how do you do this? So we wanted to provide the education on how to do it and not education that you read in a book. Not the education that you get in school, but the education you get from a mentor. That person who has the experience, who's done it over and over again and can tell you where the pitfalls are or tell you like, Hey, this is how they say it's done, but really, or here now here's some things you can do to be successful, or et cetera. So we wanted to pro to provide that type of education. And then third was really about this ecosystem, this network of like-minded people, not just women who want to see women succeed. So creating the platform, if she has a deal, becomes this community, this network where you find like-minded people or people who want to be of help, that can be mentors and sponsors, to help you get into. The door and make introductions or even just have someone to talk about, talk to or not talk about, talk to about the challenges you may be having on a particular issue of a deal or, operating your hotel. But it was really about making sure that when the women become the owners, that they are successful and have a network of people to, to move forward.

Lan Elliott:

It's really inspiring what you've been doing, and when you watch the pitch competition it's one of those light bulb things to say why did we not have this before in the industry? So thank you for developing that for the young women in the industry.

Tracy Prigmore:

Yeah. I forgot to mention the pitch competition, which you mentioned competition. Everyone thinks she has a deal as a pitch competi. But it's not a pitch competition. It's more than a pitch competition. The pitch competition was really the vehicle. So that the women, when they were learning, they would have that real time learning to apply because, if you don't apply what you're learning, it doesn't necessarily stick. So it was a way for it to stick, but also our mission to create new pathways to hotel ownership and development. It also, helps to create or, catapult the women, onto their journey by having the opportunity to present their deals in front of investors as well. Judges who have, the technical expertise that can also, help them on the journey. Yeah.

Lan Elliott:

And one of the things that you did at your pitch competition this year is during the luncheon, you had quite an amazing panel of hotel CEOs. Yes. See if I can get all of them. Chris Nata from Hilton. Mark Hoplamazian from Hyatt, Ellie Malouf, the head of I h G in the Americas, Jeff Belotti C e O of Wyndham. And Pat Pius, c e o of choice. I think I got'em all. You do? Yes. And And I was watching when you asked them very directly, why is it so difficult for women and minor minorities to obtain capital to become hotel investors? And can you share some of the key barriers that that they mentioned, because I know we talked about some earlier, but interest to, to hear what they shared with you.

Tracy Prigmore:

Yeah, so I, I don't know that we really got there on that piece. And the way that I wanted to get there, because I did want to have that realization, as I mentioned early in our conversation this morning, is that I don't believe a lot of people understand that part if you're not in that group trying to get it done because in the eyes of them and I've had conversations with all of them prior to other than Pat, but is they say there's plenty of money. Out there for deals. And while that's true, it's selective, right? Who has access to the money or the relationships with the people who have the money, who are willing? to loan or to invest in you. So it really I think it's the beginning of a conversation that we have to continue to have. And I think they're coming along to the realization of, okay, this is a barrier. Ha. The money just being out there is not enough. Yeah. And so we can wait naturally for things to change. So if you remember one of the comments. I believe it was from Ellie was that things are changing that, more women are entering into the C-suite. More women are becoming the on the capital side and taking leadership positions on that side. And so naturally we are seeing change of women climbing the corporate ladder. And as more women are in those positions of power, we'll see more. Women getting favorable terms and the capital that they need. However, for me, I don't think we have that long. Like we could, I think that could take decades. Yeah. I think we can accelerate that if, as, if, as an industry that we all agree. We want more people of color. We want more women owning and developing hotels. And the reason why I want it is because I believe that the world needs to experience the brilliance of women and people of color who haven't, historically had the access and the power to create their product. There is a wealth of innovation and creativity out there that we're not experiencing because we don't have access. People of color and women haven't had access. So they're not bringing those products, those services to life. So that's why we need it. So if the industry truly believes and they say they do diversity, equity, and inclusion, it's not just diversity cuz we have that, but it's the equity and inclusion piece that we're missing, then we have to accelerate. These this access to capital, which is the major barrier. So we can put in place programs that address what are the real issues, why people of color and women don't have that equity in access or availability of capital. And then let's address it. And if we address it, then I think the solution or the problem is solved, I believe almost over. There's an education and component and all that. She has a deal is doing that. Others are doing that. And when you saw that if these women had access to be able to bring their products, their hotel projects to life, they will be phenomenal. Okay. Phenomenal. It's not that they lack the capability, it's lack of the access of what is required to move into the. That's the kind of conversation we were having. That's the follow up that I wanna have, that I truly believe that they aren't, they weren't exactly there in understanding the difference in access and availability to capital, to these groups that they all say and have programs and. That they're trying to change and while they're doing some great things to open up access, unfortunately it's not enough and unfortunately it's not hitting. They need to keep doing it, but it's not hitting that direct accelerant that's needed. And so that's what I want. She has a deal to do, and I hope that our follow up conversations will lead to us ideating together and coming up. Those programs and solutions as an industry, all of us together, not just the brands, right? It has to be the capital sources and everyone else in the industry as well. So I'm looking forward to

Lan Elliott:

that. Thank you for everything you're doing on that front to, to help a lot of people in our industry. L let me ask you what are some of the things that you think that women and people of color can do themselves to better prepare themselves for career advancement or for opportunities if and when they.

Tracy Prigmore:

Yeah. So it, you have to do the homework, right? You have to come to, she has a deal, or other sources. But you have to understand yeah, you really have to understand how it works. And you have to educate yourself even when it's uncomfortable. So lemme get a little bit of water, but what's some of the women we worked with? they said, and I think we psych ourselves out. They said, oh, I'm not good with the numbers. I, the, I'm just not comfortable. The numbers scare me. And I'm like, what? You don't know, one plus one equals two. It's, it, the numbers aren't really that difficult. And now with tools of spreadsheets, I remember having that little calculator and you had to, put in all these, net present value, et cetera. But you have spreadsheets, we have models, we provide models. But it's so critically important that you understand the numbers. you cannot be successful if you don't understand the numbers. You can hire somebody who manages the numbers on a day-to-day basis, but if you're gonna be a sponsor, if you're gonna be a general partner, you have to understand the numbers and and she has a deal. We teach you how to look at a deal quantitatively as well as qualitatively, but you have to invest the time. and understanding what drives the numbers, where the numbers come from and people always say is this a good deal? I don't know. Like you can. Or they'll say, oh, this is a great deal. How do you know if you have not looked at it on a quantitative basis? So it may look good and feel good, but let's see financially what it looks like, because I don't believe that most people are getting. Commercial real estate just for fun. They're getting an there's a profit motivation and of course you need money in order to run and operate any business. So you have to understand where the money's gonna come from. Whether you're gonna subsidize it, you may decide, Hey, I'm gonna do the project, but I'm gonna subsidize cuz I want this project. But you need to know how much and when you're gonna have to subsidize. So my advice is really, do your homework, get close to somebody, get in a program that teaches you how to do it. And a lot of things you're gonna have to learn by experience, but you can get the foundational aspects, but don't shy away from the numbers. Lean into the numbers. If it kills you, you have to lean into the numbers. Do not pay somebody, especially for your first deal to do your numbers. And we had a couple of women who were excited that they paid somebody to do their financial model, and I'm looking at them. No you need to go back and you need to do this, and then you can pay somebody once you fully understand, because they might make mistakes. You need to understand what you're looking at when they do your numbers right. So I would have, if it's one thing, it's really understand the numbers, understand return on investment. understand the drivers for revenue, understand the drivers for expenses, and know what potential bottom lines will be. There's never a crystal ball, but there's all, there's definitely signs if you look at the numbers up front. That's great

Lan Elliott:

advice. Thank you. You're welcome. So do you have maybe one last piece of advice, you've given so much great advice and so much inspiration in all the work that you do. Do you have one more piece of advice you would offer to our viewers?

Tracy Prigmore:

Wow. I, I'd say just bar. I believe that there's so many people with ideals and And things that they want to do or accomplish, and it seems just so insurmountable sometimes, or it just seems like the hills seems so big to climb. My advice would be just do it just even if it's one step a week, right? If it's opening up one book or, research or what, whatever it is, just do a little bit every. So it gets you closer. So if you're not doing anything and just talking about it, you don't go anywhere. But if every week, even if it takes you several years, just getting closer and closer, Is going to be an advantage and then take risk and buy fixed assets, So whether it's hotels or another type of asset, I totally believe that in building wealth, you need to have fixed assets that are. Generating income will appreciate over time. Take on more risks than you're comfortable with and, do your homework, but take on those risks. Don't shy away from the risk if you wanna get ahead.

Lan Elliott:

Wonderful advice. Yep. All right. Thank you so much, Tracy. I so appreciate you sharing your stories and your learnings. A lot of what you had to figure out on your own. But it is so wonderful how you're, you've been moved to. Help other people get further and not have the barriers that you've had. And so thank you so much for all you do to inspire women and people of color in our industry. We need more of both in hotel ownership. So thank you for what you do.

Tracy Prigmore:

Thank you for letting me tell the story, I appreciate you.

Lan Elliott:

Absolutely, and just at the bottom of the screen there, I've got our website for D e I advisors if you would like to check out other videos that we've done as well. Thank you so much. Bye.