R&G #9: How to buy a hotel 101 with Davonne Reaves

TL;DR

Learn how to enter the hotel industry, secure financing, find investment opportunities, and generate wealth through hotel ownership.

Transcript

you know the thing about making history you never really try to make it it just happens the journey started with an iphone and idea and it led to our liberal creating content that changed the world earn your leisure podcast episode 6 time flies like we always say man we came up with no expectations just knowing that we wanted to educate people espe... Read More

Key Insights

• 💐 The hotel industry offers opportunities for cash flow, equity growth, and generational wealth.
• 👨‍🔬 It is crucial to educate yourself, do thorough research, and build relationships within the hotel industry.
• 🖐️ Mindset, finances, and ownership criteria play a significant role in hotel investment success.
• 🏦 Hotel financing options include SBA loans, local banks, and private investors.
• 🏨 Soft brands provide the flexibility for independent hotel owners while benefiting from major hotel franchise systems.
• 🙊 Manifestation requires not only speaking with conviction but also doing the necessary work to achieve your goals.
• 🤝 Accessing hotel deals and securing financing may require partnering with experienced operators or asset managers.
• 🪛 The hospitality industry is an economic driver that provides job opportunities and benefits to employees.

Questions & Answers

Q: When did you fall in love with real estate and how did you transition into hotel ownership?

Devon fell in love with real estate while working as a non-paid intern at a hotel consulting firm. She later pursued a career in asset management and learned about hotel ownership through her experiences.

Q: How do you evaluate and finance hotel acquisitions?

Devon suggests focusing on mindset, financing options, and ownership criteria when entering the hotel industry. She recommends starting with hotels under $8 million and leveraging SBA loans, while also considering other financing options such as local banks and investors.

Q: Can hotels be Airbnb properties or listed on other vacation rental platforms?

While some hotels may use Airbnb and other platforms for additional revenue streams, this depends on the brand and the specific agreement with the franchise. It is essential to follow brand standards and guidelines.

Q: How do you structure deals with investors and secure financing for hotel projects?

Devon advises consulting with a CPA and securities attorney to ensure compliance and navigate the complexities of hotel investments. Each deal is structured differently, but it typically involves providing investors with equity and a percentage of profits.

Summary & Key Takeaways

• Devon Reeves, a successful hotel owner and consultant, shares her journey from working as a front desk agent to owning her own hotel.

• She emphasizes the importance of mindset, finance, and ownership criteria when venturing into the hotel industry.

• Devon provides insights on financing options, hotel brands suitable for beginner investors, and the potential for cash flow and equity growth in the hotel business.