The Hotel-to-Apartment Strategy That Turned $8.5M Into $18.9M in 19 Months | Ryan Sudeck E78
What if the most overlooked apartment deal in your market is already built, it's just flagged as a hotel? In this episode, you'll discover how a valuation gap between hotels and multifamily creates forced equity of 40 to 50% before you change a single wall, and why most investors completely miss it. A CEO who has completed over 30 hotel-to-apartment conversions across six states joins us to break down the exact strategy his firm has used to generate a 20% annualized return since inception. Ry...
What if the most overlooked apartment deal in your market is already built, it's just flagged as a hotel?
In this episode, you'll discover how a valuation gap between hotels and multifamily creates forced equity of 40 to 50% before you change a single wall, and why most investors completely miss it.
A CEO who has completed over 30 hotel-to-apartment conversions across six states joins us to break down the exact strategy his firm has used to generate a 20% annualized return since inception. Ryan Sudeck and his team at Sage Investment Group turned an $8.5M distressed hotel into $18.9M in 19 months with a 38% annualized return and have since scaled the model to over 3,000 units and 500 investors.
In this episode, you'll discover:
- Why a hotel trading at a 12 cap automatically becomes more valuable the moment you convert it to residential, and how to calculate the forced equity before you buy
- The exact buy box Sage uses: room count, location signals, and the zoning step that most investors skip, which kills deals
- How to identify hotels in the "death spiral" before they hit the market and why Sage rarely buys on-market
- The invasive due diligence process they use to eliminate budget blowouts behind the walls
- Why the evergreen fund model outperforms syndications for this strategy, and how distributions work from day one
- The community impact case study in Tacoma that took a street responsible for 10% of Washington state murders to zero violent crime
If you're a hotel investor, a multifamily operator, or someone sitting on capital looking for a differentiated real estate strategy, this episode will change how you look at every distressed property you drive past. Don't miss the valuation math breakdown in the first ten minutes; it's genuinely one of the clearest arbitrage setups we've had on this show.
If you found value in this episode, take 30 seconds to leave us a review here. It helps more people find the podcast and keeps us bringing on great guests.
Connect with Ryan Sudeck
Website: http://sageinvestment.com
Email: ryan@sageinvestment.group
LinkedIn: https://www.linkedin.com/in/ryansudeck/
Connect with Michael on Instagram or LinkedIn.
Email Us at info@hotelinvestorplaybook.com
Visit the Hotel Investor Playbook Instagram
