Danny Gould: Why I'm Investing in Hotels (Mini-Episode)

Dive into the latest "The Gould Mine" episode, where we explore the thriving hotel investment landscape. Discover why the next 12 to 24 months are prime for entering this market, offering unique growth and profit opportunities. I'll take you through my journey from aspiring hotel owner to reality, a path marked by my long-term vision and strategic planning.

Learn about the crucial role of real estate syndications and private equity in navigating the hotel ownership terrain. Hotels stand out in the commercial real estate sector, offering exceptional annual returns that surpass other asset classes.

This episode delves into why hotels are currently the top investment choice in real estate, combining property benefits with the dynamic nature of business management. We’ll discuss the current market trends, including the influx of opportunities as some owners exit the scene, resulting in attractively priced properties.

Join us on "The Gould Mine" for a concise, insightful discussion on hotel investment strategies, tailored for those looking to expand their portfolio in today's evolving market.

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Transcript

•  What's up gold miners in today's episode. I am all by myself. I'm super excited for this episode. I'm going to share with you the reasons why I've I've pivoted into investing into hotels and the opportunity that I see in the sector over the next 12 to 24 months so lots of little gold nuggets here for you to pick up on and hopefully. Implement into your investment strategies over the next couple of years for those of you who are new to the channel. My name is Danny gold I'm the CEO of the selling Silicon Valley group as well as gold capital over the last eight years.
•  After graduating from Stanford University I have sold well over $200 million worth of residential real estate here in the Bay Area and now more recently having shifted a lot of my attention to Hotel ownership and investing I've partnered with a private Equity Firm that specializes in apartment and hotel Acquisitions and that's what I want to talk about in. Today's video is why I decided to invest in hotels why I decided that I wanted to own hotels and why you might want to consider doing the same thing now if you've been following me on social media for a long period of time. You'll know that this wasn't just some madeup dream all of a sudden that being an owner of hotels is a dream that I've had for longer than I've been in real estate. I have wanted to own hotels for well over a decade now and I remember vividly the first time where I had this thought in my head. I was sitting at the back. Andol Buffet the Caesar's Palace in Las Vegas and I was enjoying my my food and and you know I i' spent a really awesome week in Vegas and I was thinking to myself I just like Inception. Like all of a sudden like there was an an moment of inception in my mind where I was like I think I want to be an owner. I think I want to own a hotel on the Las Vegas Strip. Like that moment I remember it forever where I was sitting there at Al buffet and I was like huh. I think I think I want to. I think I want to try like.
•  I think I think I want to do this I want to own a hotel in Las Vegas strip and from that moment in time that thought has stuck with me and if you look at my Linked. In like I I shared on Linked. In I I've shared it pretty much in like in a lot of my my earlier social media posts that this was a goal that I was working towards and the truth is is that for a good long while that goal got put on the sidelines. While I worked towards some other goals like building my real estate team here in Silicon Valley but about 6 months ago I had an inner dialogue with myself and I asked like myself why am I waiting to go for it and like what was it that I was waiting for whose permission was I waiting for to get into ownership and what I really realized was that like no one was going to give me permission. No one was going to tell me now is the right time for you to do it. Like you just have to make the decision whether or not. This is something that you actually want to do and if it is then you just got to go for it because the actions that I was taking in residential real estate weren't really getting me any closer to Hotel ownership and so I just decided like what goal is more important right now and I decided that the goal of a Ching Bing uh being an owner of a hotel on the Las Vegas Strip was the number one goal that I wanted to work towards and so that's why I made the pivot where I was very invested in residential real estate and that was it.
•  I decided to take some of my focus. I still have that business running I decided to take some of that focus and invest it into becoming a hotel owner and so that is really the story and I can go into like way other like more. St like when I was a kid like there were so many great experiences at hotels and I think that's kind of what made me fall in love with hotels. But that's the spark notes. Version is of what got me to this point but keep in mind. When I first had the thought of becoming an owner of a hotel on the Las Vegas Strip. I really didn't have any context as to why being an owner was a good thing or a bad thing I didn't really know if investing in hotels was even possible. I didn't know how to get there and so I spent a lot of time in my 20s kind of researching and figuring out how to go about becoming a hotel owner and and really the best vehicle that I found to becoming an owner was to real estate syndications and private equity and so that's really what I'm working on. Right now is identifying properties that I can sponsor and and Syndicate through my network and then eventually once I get a couple of these hotels.
•  In my portfolio. I will then take that track record and use it to raise a fund that we can then go out and use a an investing strategy to like find a dozen hotels that we can invest in all at once and so that's really what I'm towards right now and even though I didn't have an idea as to like how to do it. I think everyone really knows that like hotels are a great investment vehicle and in this video I want to share the two main reasons why I am investing in hotels and why I believe it is a great investment vehicle. The first reason is that hotels provide incredible annual returns. In fact Cornell University put out a study where they compared all different commercial asset classes. So we're talking offices. We're talking retail we're talking industrial every type of commercial asset. They compared over a a Time Horizon I believe of like 30 or 40 years and since the 70s hotels have outperformed every other commercial asset class in terms of annual Returns on a quarterly basis. The graph you're seeing right now illustrates that point but really what you what you notice. There is that like hotels outperform almost every other commercial asset class by at least 20%. So the Returns on hotels if executed properly are far and above.
•  The the best possible real estate investment that you can make now. The question becomes why and when you think about hotels and you think about why hotels are so special. It's not just that they are a real estate play but they are also a business play so there's two components to the hotels. The first being. It's a real estate play but everything is a real estate play. You can buy single family homes apartment buildings. They're all real estate plays but what makes hotels unique and special and what allows the returns to be that much higher is that you can adjust rates based on seasonal demand and that's really the business component of it is understanding how to best position the hotel in the market to maximize the returns for that specific asset because you can change the rates on a daily basis that maximizes the return possibility of the asset as long as it's managed properly and that's obviously one of the cons or one of the biggest risks with hotels is that although they do provide on average the best returns they can also really suck your dry really fast if they are not properly managed. DED now keep in mind as the general partner of the real estate syndication. One of my main jobs is to vet the hotel management company the one who's going to be operating the hotel to make sure that they have a proven track record of successfully operating hotels and and providing optimal returns for the for the partners and for the investors but the bottom line is this is that the rate of return on hotels is far and above the best rate of return amongst all commercial real estate asset classes and for that reason alone. It's a really good reason to invest as long as the the hotel is managed properly now the second reason I've chosen to invest in hotels. Right now specifically is because of the tremendous amount of opportunity that there is in the hotel space right now if you've been watching the news if you've been paying attention to the commercial sector in general.
•  You'll know that this is a really tough time to be an owner in commercial right. Now there are a lot of ownership groups that are just walking away from their assets and while it sucks that there are lots of people who are losing in the current marketplace right now for people like me that are just getting into it. That means that there is a disproportionate amount of opportunity right now way more opportunity than we've seen in a long time in this sector bottom line is that these kinds of opportunities do not come around very often. In fact I would dare to say that this might be a once- in a-lifetime Opportunity where we're seeing hotels offices and various other commercial buildings being foreclosed on being given up on by ownership groups just walking away from them. Al together we saw Ashford Hospital ality trust which is a re. They gave back keys to 19 different hotels and this was just a month ago and so these sorts of opportunities are not very common and so when you see an opportunity like this we got to go for it and so I'm not going to sit on Sidelines anymore. I'm going to take a swing because the worst thing that I can do is be in the exact same position that I'm in a year from now but best case scenario is that we've got a couple of hotels in the portfolio and starting to really build this thing out and so that's why I decided to focus a lot of my my attention on hotels.
•  Right now is because on average year in and year out. Hotels do provide the best returns among all commercial real estate asset classes not only that but right now in the commercial sector especially with hotels and offices. We are seeing a lot of opportunity to get hotels for a discount where we haven't seen this kind of opportunity in the marketplace in a very long time. If you're interested in getting more involved in hotel investing either actively or passively you can text me at the number down below more than happy to reach out to you. I just chat about your situation a little bit and see how I can help be a resource for you. This standing gold everyone with gold capital and I will catch all of you in the next video.