From Multifamily Apartments to Multiple (Boutique) Hotel Owner with Rich Somers - Episode #225

Rich Somers is an active real estate investor and entrepreneur holding a portfolio of real estate valued in excess of $50 Million. Rich hosts a real estate and business podcast, “The Rich Somers Report”, where he interviews top real estate investors, entrepreneurs, and athletes from all over the world. Today, we have him in the lab to ourselves! A true practitioner, Rich is the CEO and founder of two real estate businesses: Somers Capital and FortuneCribs. Somers Capital is a vertically integrated boutique hotel investment firm, composed of industry-leading executives, while FortuneCribs is a technology & data-driven real estate investment & management firm. With an in-house property management company and a direct booking platform under his belt, Rich and his firm are able to perform at levels superior to competitors. In this ‘rich’ episode, Somers dives into the world of scaling from short term rentals (single families) to boutique hotels with a unique background having started his portfolio in multifamily. Rob is able to share valuable insights on the differences between underwriting hotels vs. multifamily apartments, including value-add strategies and tech stack implementation to master significant returns for investors. This episode is an absolute must-watch for short term rental operators looking to level up in a niched opportunity within the short-term rentals/commercial real estate industry. Learn from Rich's rich experience.Tune in now and Let's Build! HIGHLIGHTS OF THE EPISODE: 07:31 Rich talks about scaling STRs and getting into boutique hotels 17:33 Rich talks about how underwriters value hotel and multifamily KEEPING IT REAL: 01:50 Context on what Rich does 04:21 Social media or first deal, what came first? 07:36 Deciding to go bigger 09:43 What changed in the multifamily landscape 11:37 Can multi family operators run a hybrid? 13:54 Do lenders see hybrids as unstable 17:31 Underwriting for hotels and multifamily 22:57 Rich's Airbnb experience 26:08 No money down program 28:20 Scaling to boutique hotels 29:43 Expenses and money makers in boutique hotels 31:14 Value adding for boutique hotels 32:43 Returns from Mulifamily vs boutique hotels 34:53 What's next for Rich Somers 37:37 Advice for anyone who's interested in boutique hotels 39:15 Loan products for a hotel 43:14 Where to connect with Rich CONNECTING WITH THE GUEST Website:  https://somerscapital.com/ Instagram: https://www.instagram.com/rich_somers/?hl=en Linktree: https://linktr.ee/richsomers Get Your Airbnb Millionaire Blueprint: https://experimentrealestate.com/#blueprint Get coached on how you can repurpose your existing home or investment property into an Airbnb with me: https://experimentrealestate.com/hospitable-hosts Guesty Unique Link: https://hosts.guesty.com/?=therealestateexperiment Hospitable Hosts book: https://amzn.to/3e4LEhE #shortermrentals #boutiquehotels #Airbnb #scaling #multifamily