How to Invest in Hotels and Leave a Legacy - want to learn more?
I love apartment investing. I've acquired over $100 MILLION worth of apartment buildings.
Me and my partner Nate - have a SIX FIGURE monthly 'passive' income.
BUT, I realized that my 'passive' income is NOT totally passive.
I still need to manage my property managers. They look to me and my partner for some of the decision-making. I have to continually look over their shoulders to be sure things don't fall apart.
So I began to wonder what will happen when I die...will my children handle my buildings and truly benefit from it?
or will they be like some of the owners I bought buildings from...
Daddy died and the kids don't want the building...they can't handle it...they hate it...so they lost the buildings their pops worked his entire life for (and sold them at a big discount).
Is that really the legacy I want to leave behind?
Can that really be called a legacy in the first place?
Hmmm...
and then I realized that the ultra wealthy and those who have truly left a legacy to their kids, grandkids and even down through the generations...
they leave behind INSTITUTIONAL GRADE ASSETS which are truly PROFESSIONALLY managed resulting in TRULY PASSIVE INCOME...
and one of the real estate types that fit the above description is HOTEL...
So I went to work and dug deep into hotels.
I worked my butt off to buy my first hotel. It was not easy to break into hotels. I had the capital, the networth, the credit and still those things were not enough. I made mistakes and some of them were costly!
But I figured it out. And the results are amazing!
My first hotel produces MORE tax-free cashflow than my best apartment building.
Think about the significance of this.
I started investing in apartments in 1999 - starting with a 2-unit. It took me 20 years to have "made it" in the apartment investing world. And yet, my FIRST hotel beats my best apartment building!
Below is an example...
Of course NOI/unit is not the only measure since a key consideration is the price you need to pay for the asset. But if you know how to buy hotels right, since they produce more money per key or per room or per unit vs. apartment buildings, then, you will make more money with hotels.
Don't get me wrong...I still buy apartment buildings today but they have to be really GREAT deals (so that even if my kids sell them at a discount, they will still make money from them).
And talking about leaving a legacy, hotels are truly professionally managed. My hotel management and operational teams are college grads and professionally trained for many years.
In fact, with hotels, I don't do anything. My management team doesn't call me for any decisions. All I do is monitor the bank account and the income statement. I call and visit them from time to time but to be honest, I only do it to feel like I am working :)
So, who wants to learn more about hotels?
Who wants to leave a LASTING, TRUE LEGACY to their kids, grandkids and even down to their great grandkids?
Who wants truly passive...and MASSIVE income?
Answer this post and also ask any questions or concerns that come to mind.
I know one concern is the effect of a RECESSION on hotels. I will answer that but first I want to know if enough people are interested in this topic.
So who wants to go first?