Using Seller Finance to Buy a Boutique Hotel & Tips for Buying in 2023 | Avery Carl (Mar '23) E45
May 4, 2023
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Avery Carl interviews Rich Somers on multifamily properties merging with short-term rentals, his shift to boutique hotels, and advice for young investors. They discuss buying hotels with seller finance, unique financing models, and the importance of trust in real estate transactions. Rich shares tips for beginners in the 2023 market and the power of renovation in property investing.
Rich explored boutique hotels due to high competition in multifamily market.
Successful 2023 investor strategy includes discounted properties, strategic renovations, and favorable financing terms.
Deep dives
Multifamily Real Estate Market Trends in 2021
In 2021, the multifamily real estate market experienced increased competition due to government monetary policies and low interest rates. With 40 to 50 property tours and 25 to 30 offers on good deals, the market became challenging to navigate, leading to the exploration of alternative investment opportunities.
Venturing Into Boutique Hotels
Amidst the competitive multifamily market, the idea of investing in boutique hotels emerged as a lucrative option. By seizing an opportunity to purchase a beachfront 10-unit boutique hotel in Northern California with seller financing, the acquisition presented potential for renovation and profitable operations. Through strategic financing with investors, the investment was structured to minimize personal capital outlay.
Keys to Success in Today's Real Estate Market
In the current volatile market environment of 2023, success for new investors lies in acquiring discounted properties with value-add potential, securing favorable financing terms, and executing strategic renovations. Emphasizing the importance of adding value and leveraging debt intelligently, the advice underscores the need for adaptability and foresight in real estate investing strategies.
In today’s episode, Rich sits down for an interview with host Avery Carl on her podcast, The Short Term Show. They discuss “the marriage of multifamily and short-term rentals”, the reasons behind Rich shifting his focus to boutique hotels, and his experience buying his first one. They talk about the way the deal was structured with investors, what gave him the confidence to move forward with this particular deal, and the specific criteria he’s looking for when purchasing boutique hotels. He also shares the advice he’d give 20-year-old Rich, if he knew then what he knows now.
Connect with Avery: @theshorttermshop
-- Ready to build your boutique hotel portfolio and take your investing to the next level? Unlock our proven system by joining the Boutique Hotel Mastermind Community. Reserve your spot for a free consultation today: www.hotelinvesting.com.
If you're committed to scaling your personal brand and achieving 7-figure success, it's time to level up with the 7 Figure Creator Mastermind Community. Book your exclusive intro call today at www.the7figurecreator.com and gain access to the strategies that will accelerate your growth.
Want to invest with Somers Capital and take advantage of high-performing boutique hotel opportunities? Learn more about how to get involved: www.somerscapital.com/invest.
Need expert management for your short-term rentals or boutique hotel? Experience unmatched service by scheduling a free consultation with Excelsior Stays today: www.excelsiorstays.com/management.
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