Discover how to buy a hotel with no money down. Brad Hovis shares the incredible story of his Hotel Frisco deal, where he turned a creative finance strategy into over $2 million in profit. He reveals the exact steps he took, from leveraging creative finance to overcoming unexpected challenges. This episode offers a candid, detailed look at a high-stakes real estate investment, including the financial proof. Learn about the mindset, risks, and massive rewards of thinking outside the box in commercial real estate.
Key Takeaways
- Creative Financing: You can acquire real estate without using your own money. Strategies like lease options and unsecured hard money loans are viable options.
- Control vs. Ownership: Brad's strategy focused on controlling the hotel through a lease with an option to purchase. This allowed him to manage and improve the asset before fully owning it.
- Identify Problems, Offer Solutions: Brad recognized that the hotel had a revenue problem and a rooms problem. He proposed solutions, like leveraging third-party booking sites and converting staff housing into additional rooms, to the owner.
- High Risk, High Reward: This deal involved significant risks, including taking on unsecured debt, maxing out credit cards, and facing unexpected construction and legal problems.
- Profit from Profit: Once the hotel became profitable, all subsequent expenses, including construction costs and legal fees, were paid for using the hotel’s revenue, not Brad's personal funds.
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