How do investors convert motels into workforce housing?
Short answer: Andrew says his team buys motel units for $40,000 to $60,000 a door where comparable units should go for $120,000 to $140,000. They add multifamily amenities, work with municipalities, and use a long due diligence period to confirm the deal pencils before risking investor capital.
At a Family Office Club interview, Richard C. Wilson speaks with Andrew about converting motels into workforce housing.
Andrew on motel pricing versus apartments
At 2:23, Andrew says his team is acquiring motel units for $40,000 to $60,000 per door. He says comparable units in those markets should be worth $120,000 to $140,000 per door. (at 2:23)
Andrew on adding multifamily amenities
At 1:01, Andrew says the team applied multifamily knowledge by adding the amenities of a multifamily asset to a hotel. He says they thought they could buy the properties at a fraction of the cost. (at 1:01)
Andrew on working with cities
At 5:35, Andrew says his team partners with advisers who have completed 20 to 30 or more similar conversions. At 6:02, he says they work closely with municipalities and use a long due diligence period to check that a deal pencils before risking investor capital. (at 5:35)
Andrew on conversion timelines
At 4:15, Andrew says one clean property would need a cleanup, and his team would work with the municipality. He says it could be completed in four to six months. Other projects could take longer. (at 4:15)
"it could be anywhere from four to six months and it's completely done."
From Richard's exclusive Billionaires.com interviews
Lessons from Richard C. Wilson's one-on-one interviews, as published on each interview page.
- Igor Olenicoff: Learn the business from the ground up. A job at a builders hardware store taught Olenicoff about building materials and techniques. It also built an affinity for real estate.
- Larry Connor: Learn from every mistake. Larry's team owns its failures and makes no excuses. They learn, change quickly, and keep getting better.
- Michael Lee-Chin: Find the person who is responsible. When a problem comes up, he asks who the agent was. He wants a specific person to call, not a department.
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Frequently asked questions
How do investors convert motels into workforce housing?
Andrew says his team buys motel units for $40,000 to $60,000 a door where comparable units should go for $120,000 to $140,000. They add multifamily amenities, work with municipalities, and use a long due diligence period to confirm the deal pencils before risking investor capital.
What experience did Andrew have before motel conversions?
At 0:32, Andrew says he had completed over 150 flips, from single-family homes to small multifamily properties with 4, 8, or 16 units. He also says he had bought, sold, and held short-term and regular rentals.
What did Richard say about seller financing?
At 6:02, Richard C. Wilson says his team uses seller financing for each deal it does. At 6:30, he contrasts seller financing documents of three to seven pages, sometimes 10 or 12, with bank lending documents of 180 pages.
Sources
Quotes are copied from the video captions and checked against the transcript. Timestamps link to the moment in the video. General information only, not legal, tax or investment advice.