156: Transforming Underutilized Hotels into Vibrant Apartment Ecosystems with Alex Cartwright

Zen and the Art of Real Estate Investing

You may look at a distressed hotel and consider it an eyesore, but innovative real estate investors are turning them into properties with a purpose.

On this episode of Zen and the Art of Real Estate Investing, Jonathan interviews Alex Cartwright, Department Chair of the Management Department at Ferris State University and Principal at Hotel SHIFT, which specializes in hotel-to-apartment conversions. Alex is also a professor of economics.

Jonathan and Alex start their discussion by exploring Alex’s interest in real estate, which began in graduate school. You’ll hear his explanation of the ability to generate alpha in real estate, how real estate allows you to control your destiny, and why he encourages his students to do house hacks. Jonathan and Alex explore the types of clientele upscale multifamily properties attract, why it can be beneficial to rent instead of buy, and the importance of avoiding making decisions on principles. You’ll hear how his lack of excitement about apartment buildings led to founding Hotel SHIFT, the two reasons hotels make great investments, and why buying hotels makes more sense than converting other commercial spaces. Finally, they cover the size of hotels Alex is looking for, the features they should have, the importance of prioritizing occupancy over rent, and what limited partners can expect when they invest with Hotel SHIFT.

If you’re seeking a syndication investment that’s a bit out of the ordinary, Alex Cartwright outlines why hotel conversions could be what you’re looking for.

In this episode, you will hear:

• Alex Cartwright’s interest in real estate that began in graduate school in Washington, D.C.
• What appealed to him about real estate and the ability to generate alpha
• Controlling your destiny with how you operate your real estate business
• Why Alex encourages his students to do house hacks and still lives in a multifamily himself today
• The clientele that upscale multifamily properties attract
• The benefits of renting versus buying
• Avoiding making decisions on principles and instead, learn to run the numbers and make the decision best for you
• How Alex’s lack of excitement about apartments led to starting Hotel SHIFT
• The two reasons hotels make great investments
• Why buying hotels makes more sense than other commercial spaces
• The size of the hotels he looks for when looking for his next purchase and the features they need to have
• What tenants are looking for when they rent one of Alex’s properties
• Prioritizing occupancy before optimizing rent and the amount of time it takes to hit his goals
• What limited partners can expect if they invest with Hotel SHIFT
• Taking on a little more risk to get a bigger reward

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If you enjoyed this episode, we've created a PDF that has all of the key information for you from the episode. Just go to the episode page at https://zenandtheartofrealestateinvesting.com/podcast/156/ to download it.

Supporting Resources:

Hotel SHIFT website - www.HotelShift.Capital

Find Alex Cartwright on Instagram - www.instagram.com/Audesapere1

Connect with Alex on LinkedIn - www.linkedin.com/in/alexcartwright

Website - www.streamlined.properties

YouTube - www.youtube.com/c/JonathanGreeneRE/videos

Instagram - www.instagram.com/trustgreene

Instagram - www.instagram.com/streamlinedproperties

TikTok - www.tiktok.com/@trustgreene

Zillow - https://www.zillow.com/profile/StreamlinedReal

Bigger Pockets - www.biggerpockets.com/users/TrustGreene

Facebook - www.facebook.com/streamlinedproperties

Email - [e-mail]

Episode Credits

If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com Let them know we sent you.