{"version":1,"type":"rich","provider_name":"Libsyn","provider_url":"https:\/\/www.libsyn.com","height":90,"width":600,"title":"545: Should You Invest in Hotels?","description":"For most of my career, I\u2019ve been focused on two things: Operating businesses and Multifamily real estate. The strategy has been pretty simple. Take money generated from higher-risk, active businesses\u2026 and move it into more stable, long-term assets like apartment buildings. That shift\u2014from risk to stability\u2014is how I\u2019ve tried to build durability over time. Now, to be fair, the sharp rise in interest rates a few years ago put a dent in that model. But zooming out, it\u2019s still worked well for me overall. So I\u2019m sticking with it. That said, there are other ways to think about real estate. In some cases, the real opportunity is when you combine real estate with an operating business. We\u2019ve done that before in the Wealth Formula Investor Club with self-storage, and the results were excellent. Storage is operationally simple, relatively boring\u2014and that\u2019s exactly why it works. But there\u2019s another category that sits at the opposite end of the spectrum. Hotels. They\u2019re sexier. They\u2019re more volatile. And yes\u2014they\u2019re riskier. But the upside can be dramatically higher. One of my closest friends here in Montecito has quietly built a fortune doing boutique hotels over the past few years. He started with a no-frills hotel in Texas serving the oil drilling industry. Over time, he combined his operational experience with his talent as a designer\u2014and eventually created some of the highest-rated boutique hotels in the world. He\u2019s absolutely crushing it. Of course, most of us aren\u2019t world-class designers or architects. I\u2019m certainly not. Still, his success made me curious. Hotels have been on my radar for a while now\u2014not because I understand the business, but because I don\u2019t. When I asked him how he learned the hotel industry, his answer was honest: \u201cI figured it out on the fly\u2014starting with my first acquisition and a great broker.\u201d That\u2019s usually how real learning happens. So this week on the Wealth Formula Podcast, I brought on an expert in hospitality investing to educate both of us. We cover the basics: How hotel investing actually works Where the real risks are (and where they aren\u2019t) How returns differ from multifamily And what someone should understand before ever touching their first hotel deal If you\u2019ve ever thought about buying or investing in hotels\u2014but didn\u2019t know where to start\u2014welcome to the club. You don\u2019t have to jump in tomorrow. But you do have to start somewhere. This episode is a good starting point. ","author_name":"Wealth Formula Podcast","author_url":"http:\/\/www.wealthformula.com\/","html":"