How does Andrew convert motels into workforce apartments?
Short answer: Andrew's example of a property already had kitchens and needed cleanup. Existing unit layouts can affect how much conversion work remains.
On Richard C. Wilson's Family Office Club podcast and YouTube show, Andrew discusses his team's motel-to-apartment conversion work.
Andrew on Houston motel pricing
Andrew said his team was pursuing Houston motel deals at $40,000 to $60,000 per door, while comparable apartments should sell for $120,000 to $140,000 per door. He estimated the team would be all in at close to 70 percent of market value after acquisition and renovation. (at 2:24)
Andrew on adding apartment amenities
Andrew said the team applies the amenities of a multifamily property to hotels. He described that approach as a way to turn motel properties into apartment assets. (at 1:00)
Andrew on conversion advisors
Andrew said the team partners with advisors who have completed 20 to 30 or more similar conversions. He said they work closely with municipalities and cities and use a long due diligence period to check that a deal pencils before putting investor capital at risk. (at 5:37)
Richard C. Wilson on seller financing
Richard said his deals use seller financing. He said it can simplify financing documents and reduce the risk of a bank disrupting a deal late in the process. (at 6:04)
"we work closely with municipalities we work closely with cities and we have a very long due diligence period"
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 does Andrew convert motels into workforce apartments?
Andrew's example of a property already had kitchens and needed cleanup. Existing unit layouts can affect how much conversion work remains.
What real estate experience did Andrew have before motel conversions?
Andrew said he had completed more than 150 flips, from single-family homes to small multifamily properties, and had bought, sold and held rental properties.
How quickly can a motel conversion be completed?
Andrew said one project could be finished in four to six months. He said timing varies by property.
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.