Today on the podcast we are talking about one of the BEST investing niche markets with our guest Rich Somers. Rich is investing in some untapped markets and seeing a lot of opportunity in this specific space of boutique hotels. Stay tuned to learn more!
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Video Translation:
...that was my seed money to get started. I also pulled out a home equity line of credit and use that money to put down on my first deal, which was 11 unit multi family deal in Cincinnati. And then shortly after that, a partner with a couple of guys, we J V to 32 unit deal in Indie. Um and then started a podcast, learned how to raise private money and then started taking down larger deals.
Um took down about 300 units out in Greensboro, North Carolina. Those were our first couple syndications and then um started doing some short term mental stuff on the side and realized man, these things are cash flowing really nicely. And so I started building out a management company to manage those short term rentals. And so now we manage a portfolio of short term rentals and boutique hotels kind of throughout the country.
About 78 markets. And right now I'm going all in on boutique hotels. I thought, you know, if we can use this management company to manage these boutique hotels remotely free of on site management. Um It'd be a good way to, you know, for some value out appreciation and that sort of thing.
So about the first hotel about five months ago, up in northern California, 10 rooms beachfront And we're using this management company to operate it. And now we got a 24 room hotel here in little Italy locked up and we should be closing on that in about three weeks.
That's awesome, man. It's a great story. Uh Take us back to your first deal a little bit like how did you find the deal? How did you fund it? I mean, talk about you find it a little bit but how did you find it was like roadblocks or challenges you faced in that first deal?
Yeah, I had all the problems, man. So this deal with C class, it was in a decent neighborhood uh next to University Xavier out there in Cincinnati. Um but a C class deal, slumlord owned it all the deferred maintenance, paid low thirties a door uh as soon as we close, like four of the tenants moved out. Um And then we started renovating those units and refilling them.
I hired the wrong property manager. Uh So two months in had to make a pivot brought in another property manager and you know, they've been uh managing it ever since. Um but yes, slowly turn this property around 18 months later, refined double the value of the property. Pulled out all my uh my funds, my my down payment, all the rehab cost pulled all that and then some and now just holding it long term man, ended up buying another one out there actually.
So I got a couple deals out there and since the multi family, but now I'm really focused on like buying good quality coastal market, stuff like in what good locations in, in coastal California?
That's awesome. Why did you pick um Cincinnati as your first market to invest in? You know, I was, it was, it was the first deal, right? And so I just don't...
