If there’s one asset class that opened opportunities amid adversity such as the Covid-19 pandemic, that is the hotels. In this #Highlights episode, we feature our conversations again with two Mikes – Mike Zlotnik and Mike Stohler. They both found opportunities in hotels during the pandemic. One is hotel redevelopment and the other is hotel investing.
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Mike Zlotnik tells us about how hotels present unmissable opportunities for multifamily redevelopment, as well as the step-by-step process behind acquiring such properties, how to take advantage of location, and the types of operators you should be teaming up with. Meanwhile, Mike Stohler talks about the pros and cons of investing in hotels and also shares the differences between hotel and multifamily investing. Click the play button now!
Key Points From This Episode:
- Mike introduces today’s topic: opportunity born from COVID-19.
- Find out how COVID-19 has created opportunities in the affordable housing space.
- How you should approach hotels for a deal.
- Location is an important aspect to consider when acquiring a hotel.
- How you can use location to your advantage.
- The most favorable locations for hotel-to-affordable-housing conversions.
- The differences between hotels and multifamily are flexibility on rent every day with hotels, renters change every day, the hotel is both real estate and a business, and easier turnover.
- Mike shares that the Covid-19 pandemic hit the hotel industry but none of his businesses has closed down.
- Mike talks about the importance of thinking about what is driving people to your hotel.
“The opportunity is no longer to look for another multifamily asset but to look for distressed hotels.” – Mike Zlotnik
“I get to choose my rents (in hotels) every day. I get to change it, I get to position my rent depending on the market. You know, a concert comes into town, man, I’m $60 higher for that night.” – Mike Stohler
“Hotels are real estate and a business. So, I own a small business. I own a flag hotel, which means it has a franchise attached to it. I own a Marriott Hotel and it sits on real estate. So, I have an appreciating landmass and I have a business that appreciates, and I can then move and work on the expenses and the revenues.” – Mike Stohler
“The biggest difference (with hotel investment) is you have to learn how to run a business instead of multifamily which is just real estate, landlord, tenant, and things like that. So, the biggest thing I tell people is don’t jump into hotels because now you’re running an actual business with 15-20 employees.” – Mike Stohler
Links Mentioned in Today’s Episode:
About Mike Zlotnik
Mike Zlotnik has been a debt and equity investor in real estate since 2000. He started his career and spent nearly 15 years in the information technology field managing Risk, Business Intelligence, and Quality of complex systems, software, and processes. While building a successful career in IT, Mike’s passion has always been real estate investing because of its predictability of outcomes and well-understood risks. In 2009, Mike joined Tempo Funding, LLC (Mortgage Pool Fund) as a managing partner, and Vice President of funding operations. Starting from January 2014, Mike has assumed the responsibility of a CEO and has since founded TF Management Group, LLC, launching 3 new real estate investment funds, TF Investment Fund II LLC (Income Fund), Tempo Opportunity Fund LLC (Growth & Income Fund) and Tempo Growth Fund LLC (Growth Fund). Under Mike’s Leadership, the company has seen transformation & growth, delivering strong returns for fund investors. Mike holds a Bachelor’s degree in Mathematics from Binghamton University. Mike is a member of multiple real estate and investor mastermind groups such as Collective Genius, Freedom Founders, Venture Alliance, CA Investors (Private).
About Mike Stohler
Mike Stohler is a former commercial airline pilot, Navy veteran, and co-founder at Gateway Private Equity Group, a real estate investment firm whose portfolio has included hotels, multifamily, and residential properties. Between apartment complexes, houses, and hotels, Mike has owned or operated over 1300 units. Seeking value-add opportunities and higher returns, Mike pivoted from multi-family to hotels and now focuses exclusively on this niche. Key focus: Investing in current “unloved” hotel assets to generate powerful wealth.
When Mike first started in real estate investing in 1999, he lacked experience and failed. Through committed action to learn, grow their skills, and help others, he has created immense change in his business and life.
Since his early beginnings, Mike has seen significant financial gain and wealth generation through powerful real estate investing. Passionate about the impact real estate investing has had on his life, Mike leverages his experience to help busy professionals generate long-term wealth through hotel real estate investments.
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