Dr. JD Singh: ex-Surgeon shares his Hotel Investing Secrets that created a 9 figure Portfolio

💻 DOWNLOAD Your Free Copy of The Physician's Guide to Hotel Investing: https://bit.ly/40ocIMF

Explore the lucrative world of hotel investments with Dr. Jasdeep Singh, a former surgeon turned real estate enthusiast, in this insightful episode of "The Gould Mine." 🎙️ Dr. Singh shares his journey, highlighting the benefits and unique opportunities that the hotel sector offers, especially for doctors looking to diversify their income and save on taxes. Whether you're a medical professional or someone interested in the world of real estate, this episode offers valuable insights and actionable advice. Plus, Dr. Singh is all about building relationships and is generously open to connecting with listeners.  Tune in to "The Gould Mine" for this concise yet information-packed episode, and let JD guide you through the rewarding journey of hotel investing. 

JD Singh Contact Info:
(916) 749 - 0245
jdsingh913@gmail.com
jd@globalcapitalhotelgroup.com

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Transcript

•  What's up gold miners. In today's episode I have the great privilege of interviewing Dr Jazz deep Singh who went from full-time surgeon to Hotel Mogul and in this episode we are going to go in depth into that Journey from being a full-time physician to a full-time real estate investor. We go in depth into why JD chose to focus primarily on hotels as opposed to other real estate classes. Later on in the episode we get into the challenging commercial real estate environment right now and what JD is doing to navigate these turbulent Waters to find the golden opportunities in today's market and then finally we spend a lot of time. We go in depth into the various investing strategies available to Physicians as well as the advantages that Physicians can realize by investing in hotels so without further Ado everyone. Let's welcome to the podcast Dr J D sing JD welcome to the gold mine. It's a pleasure thank you for the invite yeah man and you know what we have gotten to know each other pretty well in the short amount of time that we've known one another and the question that always comes up in my mind is how does one go from being a surgeon to full-time real estate investor. What made you decide to transition like what was that aha moment what was that moment in time where you were like I need to do this well to be honest. Sometimes I I wonder but honestly what happened is that you know medicine is a Everlasting you. It's it's all about dedication your priorities. Chang. It's about patient care the person in front of you at that time uh so back in 2012 during my starting of my residency um you know while um you know doing my fellowship in very active surgery. Here there was a moment when my first child was born 2012 and I literally was not there I was in the opera road you know my my biggest thing was my patient. Everything else is secondary um and you know I just said you know working so hard. But I'm not at the the moments in life where we cherish you know. And I wasn't there for the first week or two weeks and and I it got to a point I'm just thinking to myself. What do. I doing this for you know um is it for the love of medicine. Is it for me and I I took a back and you know Desy took me on another realm. You know I love business I've always been a Wheeler Dealer and and so I said you know what there's a point in time where you exchange your your time for money. But there's a point in life too where you're you should your money should work for me. You know what I'm sleeping my money should be working for me or leaving money in the bank. It's losing its value so that's when I took a step back and with the changes of Obama GE. Uh it became more procedure based where I used to do one procedure. Now I do two three Pro procedures to keep that compensation and you know you want be o for 12 sometimes 14 hours and these are complex cases because you're dealing with uh comp. High complications with patient with high risk especially know with obesity um and that's why I took a step back and now in my own businesses. I'm My Own Boss I wake up I do what I want to do. I just need a laptop and a phone and I can be anywhere in the world. So that's when I had that a moment and uh now took out that leap of faith and people thought I was crazy. But I think I made the best decision ever yeah yeah. You know it's whenever you make make a life change like that. I'm sure that you had your naysayers the critics the people that said don't do it. How did you like deal with that. What was what was the what was the Mantra what were the things that you kept saying to yourself to get over the peanut gallery yeah absolutely you know it. It was a tough decision I would to be honest. The first year was so tough I didn't know what to do. I didn't have that consistency check you know that was coming in and on top of that medicine you know 30 to 40% goes to Uncle Sam you know and so you know just saying you know I was doubting myself every day. Hey man did. I make the right decision am I an idiot you know why did I do this you know I went to school for both 14 years. Plus stand on with training and you know the thing was that you know you see light and end of the tunnel and it always takes one deal any deal one deal to change your life and that happened to me. My first hotel deal I did in 2012 where I had invested it uh in the sub of Seattle and uh you know just you know that that one hotel kind of partially paid my salary and I said okay if this if I do one and then I do another one man this will entice my whole salary so you know then I so you know dogs will always bark. Let them bark. You do what you do you know you do it. You know I I do it for myself. I have a why and and that kind of pushes me to her. You know they um those Nays excelled we even more and I thank them if it you know the doubs. I thank them till this day uh just put in that perspective because it pushed me even harder. Yeah. I love that man so even even those NS thank you if it wasn't for you guys I wouldn't be where I'm at um like I said I have more than I deserve I'm content but I just love doing business or uh real estate with some uh commer commercial or business aspects to it. So you have your why it's very clear. You you have a family that you love and you wanted to prioritize or or make more space for your family and that started in 2012. We're now a decade plus into this journey. Why don't you talk what like what how did it start. So you had your first hotel in Seattle and kind of walk us through where you were at then like from the first acquisition through to you know today. So you know. I I had a great mentor was my brother-in-law um. You know he brought me in this business and you know one thing. He taught me know doctor's. St is fix typically now there's not much you can go up or unless you have your own practice and stuff like that and or surgery. It's all procedures you know more procedures more money. It's that simple U and so he was my biggest Mentor. Um. I learned a lot from him.
•  We bought our first Hotel there. Then we bought our next one uh in Hilton Head Island which was two hotels and uh you know he was ahead of that project as well. And you know. We took a condemned building and within with his guidance. Within eight months we salvaged it and we branded as a Best Western Plus and then was we had at another hotel. We run that private and then we made that into a choice uh by choice hotels a centium colletions a softw. Now we're on this year or end of this year. We hope to make it a Double Tree by Hilton um. So you know just one deal to the next. Then we bought some. This is when I got my foot wedding operations um in Orlando. We had bought a hotel there to uh well. We first bought one then a second one we had dual branded. Those then we bought a third one near Disney World uh and then after that we bought our probably our biggest asset then was in Jacksonville Florida uh so it's slowly added one by one you know at Great Partners so very understanding and and you know we sand it and you know. Sometimes we expand it too fast and uh sometime we made some mistakes here and there I'm not going to say it was perfect. But you know you just take one deal. You you sell it. Then you go to the next big one. Then it gets to the next big one gets bigger and bigger um and so that's how we started and and now we have a portfolio hotels and been a learning a learning um experience um. You know we've made mistakes uh. But with those mistakes we excelled at Le 20x. What we are you know we wear our failures and losses of money as our badges um. It's a ever growing business so but I love the hospitality business. I'm not just in Hospitality um I kind of Diversified on self storages you know Flex space office Land Development so it's over to everything but I'm really heading into hotels and of course multif family. You know that that's a big switch though right. So you you have you're N9 to5 so to speak. You're a surgeon and then you quickly make a huge pivot into hotels. First of all why hotels of all the things that you could have gotten into what was it about the hotels that Drew you to them was it the personal relationship then with your brother-in-law or were there other things outside of that that Drew you to hotels well you know the the hotel business are very d dnamic business. It's not you know you have the real estate business. You have the land and the building that's one aspect okay that you know things always appreciate. The other business is you have a business within that real estate as well. You know and there's different formulas to it. You know you have extended stats. You have limited service. You have full service you know you have resource time shares or the newest thing a hybrid of condo SL Hotel. I mean so there's multi faets on top of that people. Need people always travel people need a place to stay trans. Gu need one nights or two nights. You know we have business. Travelers we have government business. We have students uh you know and then there's a Leisure business of course and then you know right now too. A lot of people I mean there's a shipping di demographics happening right now too. So a lot of people cannot afford rent. I mean there's class BS movement. Class C Class C is moving to d d is moving to Mobile imp Parts. Those mobile parts are wanting to these weekly motels so that's a different business plan right there. That's a niche that a lot of people are not. Focusing is those weekly hotels where people can out AFF with inflation. People cannot afford deposits or monthly rent. So they pay weekly or sometimes daily so that is another business too so with a hotel. There's so many different demographics. Business plans um and different things of components to it and then you can add small businesses on top of that you know food and uh F FMB food and beverage you know and you know and the other thing is too. Is the you know Hospitality you know giv giving a person a smile you know the Small Things always matter in hospitality and giving amenities they need because they're away from hold and our job is to provide a hold within a hotel 100% and actually that's one of the biggest draws for me personally in into the hotel sector as well is the business component of the real estate right so most other asset classes. It's you buy the office building you lease it out trip net and you don't really do much afterwards. There's No Business aspect to it and I think that's the unique thing about hotels is that there are a variety of different types of hotels as you mentioned and then subsequently. There's there's business plans associated with each type of hotel and so there's there's a lot of nuance there and and opportunity to not just be a a landlord but be a business person. And I think that's the really cool thing about hotels and it sounds like you feel the same way absolutely absolutely. I mean there's more to it. You know on top of that there's different operations on top of the businesses. You know you have a front desk you have housekeeping maintenance food and beverage. So there's a lot of components that go into the operations and in this business um and the thing is that you know with hotels which I love you know. It's another thing too is the tax bants even with a cost segregation you can even cost segregate a piece of towel. I mean that is huge and that's one of the biggest things too you know in a multif family. You can you know depreciate the the assets of the structure. But within a hotel you can even depreciate the towels you know the toilet paper to a certain degree. So there's hotels have a huge huge huge tax savings that's interesting and that's something that yeah. That's something that a lot not a lot of people really think about they you know when exploring different commercial real estate. It's usually what's going to generate the most amount of money for me right or what is the most accessible. But it's not always which one is the best investment from a overall cash like cash to me uh or like overall like a receivable cash to me in terms of Revenue profits and tax incentives because that's something that not a lot of people think about really so. It's interesting that you bring that up absolutely the other thing too is that you know. Let's say office space multi found Sal storage. I mean there's so much of value ad you can do to that. You know uh. You know how many times can you change carpet. How many times can you change paint. The wallets you know everything has a lifespan but in a hotel you can drive it as much you can drive your sales. You can drive. You know change. The flap change a different brand. There's so much components more value. Ad things you can do with changing carpet. I mean you're just stuck to that one small simple thing you can re increase your rents but here in hotels. You can drive it as M as high as you want uh and that depends on you and your aggressiveness. You know you can drive sales. You can get corporate business. There's so many facets to this business. It's just not one way you know uh you know there's Leisure business marketed. I mean there's so many different things you can add to sales and that's what's so attracted the hotels you're not stck to one business model. That's a really fascinating point. So Switching gears a little bit. You obviously had a lot of interactions with Physicians probably still du to this day and what I've observed and I'm not sure if you share this observation or not. But I I feel like a lot of Physicians are are hesitant to get into uh real estate investing or I don't see a lot of Physicians investing necessarily in real estate. What do you think holds Physicians but like what are some misconceptions. What are some of those the the reasons for uh. Physicians not um not buying as much real estate as you would think they would want to or have the ability to buy based on their income and I'll be on quite honest. Doctors are not business sa me um.
•  They they don't know numbers. Uh you know raising cap from adapters is really tough. Uh. It's more of. It's a lack of Education. A little bit more hold holding their hands and showing The Guiding them through um. There's there hasn't been any efforts to educate doctors. I mean if I compare that to uh Engineers where Engineers are really number. You know they know their numbers. They're very analytical. Doctors are the other way you know. They tend to be more book smart um and uh and not number smart to be quite Frank uh. But I think with doctors I mean they have Capital but they don't they they they do not know how to invest in real estate. So I think 100% of it. I think it is number. One you need to educate them and number two is show it. You know it just takes one deal. I know some doctors. They were hesitating the first time but with education putting in the first deal. They're they're going to keep on quality hey once the next l once next l once next like because they can see that value of the money whether in 2x 4X or 10x depending on the deal um. So the biggest thing is getting the name out there. Um you know you know like me and Danny up here are writing a book about hotel. Investing For Physicians um some education materials that we can educate Physicians showing the num showing up uh showing them the numbers at the operations and the performers what they anticipate you know instead of keeping it. You know a 41 okay mutual funds uh because in today's in today's uh Market I mean you know more millionaires have been made. In real estate. Donald Trump made his millions billions in from Real Estate Robert K name anyone I mean it's the oldest profession real estate and so like I said you know it's just a lack of knowledge for doctors and and you got to sit down. They're smart people but we just got to take a little bit more time to understand the the procedures the logistics of everything and how a deal is formed and what you anticipate and top of that the tax savings. I mean doctors are tax at at least 40% of their paycheck and you can tell them hey man why are you paying taxes. You know you know with with real estate. It is something that you know you can depreciate accelerate that depreciations and pay no taxes. My check 40% was going to Uncle Sam and you know as much as we have to pay tax uh but you know there's there's laws out there there what you know has been beneficial to you know real estate. That is why you know politics and real estate always go hand in hand. I mean there's so many Ru laws and Taps Just For Real Estate yeah. There's a lot to unpack there and the first thing I'll say is Shameless plug you you you uh you talked about it just now JD you and I are co-authoring a book on uh investing in hotels for Physicians and that link will be available in the description. So if you're interest if you're listening to this podcast and you're interested in checking that out uh the link is in the description and you can uh go ahead and and download the book there. So that's number one number two is there's Physicians listening to this podcast right now JD that listen to what you just said and their first thought is oh my gosh like that sounds awesome. But like like I don't have the the time to run a hotel business I am busy with patients so sounds like a lot of work for someone who is heavily involved in another business. So what would you say to a physici like that absolutely a lot of doctors you know they put their money in the stock Mark. They just leave it there. You know and you know stock market is very volatile. It goes up goes down where and something as a Hospitality business. It's a fixed asset. It is something you can touch feel you know and just like this you leave it to the professionals. Like myself or Danny where we know this business no on top of that we have parameters with franchises. You know they have a a protocol. You know they have brand standards um. So you know you just get that check in every quarter or every month and leave it to us and with these kind of business you can do fourx to two EP from well. I would say twox that's you know more multif family office space but in Hospitality it is or EP plus h in in instance depending on deal and and the markets. But you know just you know it could be a passive investor um and you get a consistent check um and there's not much to it and it's you know. It's pretty much that simple you know you put in the stock market. It goes up and down but this is a different investment. You can go to a hotel you can have pride. I on part of this hot you you can see the business you can see the marketing you can see. The changes are happening and the consistency of business people coming in and out where you know 401ks man sometimes you have good days. Sometimes you have bad days and with real estate real estate doesn't go down 40 50%. It stays stable and if you compare real estate to the soft Market uh you know it's real estate has always done good and and on top of that we get cash flow as the as the thing is appreciating Valley as time is going on. You're also still cash flowing from the income you're getting from hotel guest. You know that there was a study done where you know monkeys can pick stocks better than humans you know they were throwing you know symbols and that so at this there's not monkeys. Doing this. These are sophisticated systems and these are sophisticated C performance indexes out. There you know there's there's there's standards out. There you know a housekeeper needs to clean a room in 28 minutes. Um. There's still much more how long does it take to check in a person shouldn't take more than four to six minutes. So we have standards. We have um charts and we look at these small data uh to make more efficiency and you don't need to be leave that to us uh because we're good at our game 100%.
•  And by just a couple of of notes here so the first one being JD you just touched on different passive investment strategies and and probably a lot to unpack. There. We might get to it. We might not but the different investment vehicles that you can invest into that are more passive right. The like a more like oh you just put it in there and and and let the the money work for you. All of that is covered in the ebook so if you're interested in learning more about those types of investment strategies as well as investing strategies that are more self-directed as opposed to uh passive syndications Equity Funds Etc. So uh if you are interested in any of that you should definitely check out JD and I's book so let's um. Let's switch gears a little bit actually one last thing here because you said it and I don't know if we'll get a chance to revisit it. The cash flows the cash flows on hotels. How do they compare versus other commercial asset classes because you own a lot of different types of real estate yeah. So what do the cash flows look like with hotels versus other asset classes oh the let me talk about margins. It's usually I mean you know depends on the totel limited service to Bull service so you're looking at 25 to 40% of beta margins. On that. I mean that's huge I mean for every dollar you're getting a margin of 25 45%. Depending on that I mean so I don't know any other industry like that um. You know Self Storage you know there's so much you can do to that. But hotels is a dynamic business. There's more the more input you know more sales you can drive more money. You make but you know you know just rule of thumb. I always put it about 50% here and there roughly about about what what sorry about 50. I mean it's but you know it's your. The the margins are close to 20 45 but just a rule of thumb just to be more conservative. I always say 40% or so on your margins yeah. So when when you talk about like cash on cash returns. It's actually it's interesting because Cornell yeah I don't know if I share this onear with you. But Cornell University did a study. It was a 25e study believe it started in 1989 and it went through 2015. So three bare markets right you had the you had the the 90s bare. Market you had the dotc crash and you had the Great Recession in 20089. Despite those three bear markets hotels outperformed every commercial real estate asset class and it wasn't even close that in terms of annualized returns so when you look at the just like the overall cash flow potential in a hotel. It is better than multif family is better than office especially nowadays retail better than retail so they uh now. I'm not sure if they did sell storage sell storage is kind of like a newer and it's kind of like a niche thing yeah um. But there are lots of different commercial asset class industrial. All of those they they they measured hotels against all of those and hotels outperformed every single asset class which is interesting especially because people are afraid of investing hotels because of economic concerns right so that when the economy goes through a rough spot the concerns are well. We're gonna you know that the hotel is not going to produce as much income. What what has been your experience been with that JD. You know what's funny is that people you know during. Co everyone was under house arrest. You know people cannot sit around they need to move they need to be going. They can stay patiency go people need to get out visit Places Travel um and you know you know what's funny is right. Now. Hotels are doing better than they did might be C which is funny. So people are traveling more people need places to stay business government people always traveling you know they fly you know they fly from one area to another and they need a place to stay yeah uh. So I I see you know people cannot be you know stuck in one place. They need a place to stay and hotels provide that accommodations and on top of that you know you know. It's funny that we're busy than preco. My numbers are better than 20 19 numbers. Right now do you think that there's a bit of a a rebounding effect right. So so these are that's a 25e study right so so maybe perhaps during those be bare markets. There there was a time uh where the income and the revenue was lower but then when you when you spread that across so in 2020 it was a really bad year but when you factor in the the rebounding effect in 2122 it neutralized the in 2020 yeah yeah if we do the averages absolutely. Uh and I think still even today is still outpaces than any other um real commercial real estate out there yeah. It's interesting that's really interesting and I think it's something that a lot of people don't like who talks about investing in hotels. I mean seriously right so so very very few. It's a n a lot of people don't know because you know what the m conception is. When you. When you buy these assets you have to have millions of dollars well. Not necessarily I mean lenders love hotels because of the cash flow. These are cash TOS in know way so you don't need you don't need millions of dollars. You can. Syndicate deals you can jv on deals uh the you know. The lending is pretty. You know you have SBA lending you have USDA. La you have commercial bath loans. There are so many programs out. There you know typically you know on the lowest you can put is 15%. The most you can be is you know SBA requires 20% but even the government will guarantee that loan up to 80% um. You know offsets that R to towards the banks so there's so much opportunities and you know people have this misnomer here that oh man these are going to cost me a lot of money. So I mean I've seen you know there's leaste option of purchase hotels. You can lease Hotel stabilizing and then you can purchase it. I mean there's so many creative ways of doing it and least I'm going to buy Motel seller financing. So there's a big myth that you need to have bit capitals. I've known few other people who walked into deals with zero money down so let's talk about that real quick. So where have you how have you been able to do that before like do a zero money down deal so with zero money down. These are operators. They thought they knew how to run. They no you need to have some experience to get into hospital or have some people that know that business really well. So. There was some people um that got into the business think it was easy um. You know there's not much you just have for that's because there's multiple facets to Hotel operations wise and they pretty much you know. They they put all you know they put everything into the hotel and you know it was mismanaged uh employee problems and they they just wanted to stop that bleeding and they just they were willing to hand it off to someone that knew hospitality and it would and these these you know you walk in. With 100% self financing. You know you can walk into a hotel and know what's the problem and these are easy fixes and there's situations. Like that you never know what people are going through or another thing is too if you don't have money. There's also lease option to purchase you know where you take this asset and you know you do put your value. At you can do the pep uh which is the pep is something that's given by the franchise uh to get it branded and there's few you know things you need to change in the rooms or remodel. You do that you can get some FFN loans to do that. Once you get that done and you stabilize it for a couple of months or so and you put in a higher flap. You can go ahead. You have the right to purchase that now off of that lease and there's banks that do that all the time and whatever that pip you do is credit or credited towards your down payment because you already put those stuff in that hotel so that is considered your down payment. So there's so many structures you can walk into deals. So there's there's the business component to hotels which we've been talking about. Now you're starting to touch on the real estate component of hotels which is understanding how to structure deals and that's the cool thing about hotels. Yeah is that you actually there's there's the real estate aspect of it and then there's the business aspect of it and the two go hand inand look at all the best business out there. Like perfect example right McDonald's are they a hamburger company or are they a real estate company a real estate yeah because when you look at the balance sheet yeah. It's it's a real estate company. Real estate same thing with chick Playa. I mean it's all about real estate. I me this is the oldest profession. I mean more millionaires are made in real estate because real estate.
•  It's a hard asset. I always appreciate I I've never seen I mean house is going down. I me besides $28 for a different reason but things it's a very a market. People need a place to say people need building. We need buildings. We need things so let's talk about the market real quick because there's definitely some changes happening right now and there's a lot of stress especially in the commercial world when it comes to the interest rates and what that's doing to prices what that's doing to sellers being able or owners being able to even hold on onto their properties so what are you seeing in the market right now A and what are you doing to prepare yourself to help your properties weather the storm a and then take advantage of the opportunities that that can and will be out there. In the next 12 18 months absolutely let's talk about the problem coming up. Uh I believe next year um you know prices inflation's high. In order to aing inflation you have to increase interest rates you know with the money velocity the M2 but the biggest problem right now is we have $1.5 trillion dollars of bridge debt commercial Bridge debt that includes Hospitality that includes office space and that includes multif family. So these Bridge debts were done back where 202 2020 21 and 22 where they got these temporary loans to bridge that Gap um and they were cheap. At that time you know for four three four 5% and they did not get rate caps on them and now they have a fluidy rate and those rates are going 9 10 sometimes 11%. Uh so on top of that you know so that now in the race are increased and that cuts into your cash flow and when it cuts into your cash flow it decreases your noi. So a lot of these people cannot refinance it because now they're in a loss number two. The value of that just gone down the real seate value has gone down as well based on the noi so a lot of these guys are stuck. They don't know what to do with it. You know they can't sell it. They can't refinance it and they can't so lot there's going to be a lot of distress coming up I believe. Next year. I mean they're theing first quarter of next year is 21.2 billion uh 24 and 25 and that translate to Opportunities um a lot of opportunities because for the past 14 years things have been appreciating So High um and I think with this opportunities coming and there's a wealth chip happening too as well. I believe there will be more opportunities to come and right. Now this is the year of um you know with any business. It's all about efficiency cutting down where where things are not needed. You know relying on key performance indexes you know you know checking in people you know now. One big thing is in the hotel industry is um uh housekeeping upon service. Hilton was the first one now we do not provide housekeeping every day. It's upon request now um so like I said a lot of things are changing. Now you can check in yourself through a um through a kiosk or through your phone um. So there's a lot of small deficiencies. Happening you don't even need to check in in the front desk anymore H yeah yeah that's a really interesting note is the efficiencies are increasing due to the technology that's available to us. And so it's a it's. It's a good time for some of these Technologies to be leveraged in order to offset any unnecessary expenses. Yeah sure now with all that being said though JD what are you doing specifically for yourself and for the people who are part ING with you. What are you doing specifically to go out there and take advantage of the opportunities that uh that are presented to you well basically down dating now in commercial real EST estate from General from C uh there'll be a 30% discount and like I said these discounts come once so oped. You know probably few times in a generational. I would say so B basically telling it. This. The clients that are coming right now take advantage opportunities uh to get something you know at the bottom and there will be more opportunities to double or triple four times your money um so basically. I'm one educating um investors out. There are be opportunities. The different ways we can change or do. The value aded changing the platform higher flag. Uh streamlining efficiency and Technology um you know right. Now you can check in from your phone and unlock the unlock your door to your room with the phone um. There's many now equipment out there. Too lot you know biggest thing right. Now too is lot of the hotels are changing to showers from one from lot. The franchise are requiring to go moving the next five or seven years to showers showers are easy to clean uh number two. A lot of the times they want vinyl lvt. Floors so you're not carpetting. There's no carpet so you're just spot mopping or spot cleaning easily uh on top of that. There's so much so much uh. Ed I would say training that goes to housers to make it more efficient. Cleaning products are out there um even with washer. You know a lot of the washers come with the Smart Sense. I know when things are more so they'll wash it more or not. Uh. There's also different Technologies. We Best Western has this I air one where they W and it kind of kills all the SE around it. So there's so much happening. I mean it's going at a fast pain where sometimes we can't keep up um and pop with that. So you know a lot of friend desk um you know they have EOS now so sometimes they won't have a night person or night artist where people just checking to this EOS and there's a phone there if you have any problems so on top of that so just changing educating the investors that things have streamlined to a certain degree that is g so efficient now that the cash flows so much better. Now there's so much uh opportunities with opportunities to come. So. It's mostly educating and um telling them the different structures of the deals telling the different value of things and the different franchises you can add to and on top of that too you can also like I mentioned too a different business plan is you can also take these assets and sell it to the state or to the city. I mean lot of the cities have this Rec Jeep problems you know they house a lot of these people. During Co they had to put a lot of these patients in hotels. I mean a lot of you know a lot of people especially in California. There's a thing called project homey where the state is buying hotels multif family and converting them to transitional housing. So there's so much opportunity so much different ways of looking at things you can take. These hotels may come into time shares so there's so many different ways when you're exiting and explaining to the investors. There's not just one way just running as a hotel and and you selling. Hotel you can do other things with it. You can Master relas these hotels um you know. The VA has grants right now po over riving and they're looking for hotel. There opportunities than running the same thing about being so many other. In a doctor. Realms you don't have to be writing prescription taking work for the insurance. They can work for you know medat. There's so much different opportunities just thinking outside the box and just not keeping the limited Focus as hotels you check in people and check out people so much more to it. Now that's awesome so really what I'm hearing you say then JD is that there's going to be some opportunities out there and your job is really to. Identify those opportunities and figure out what the best use Cas is for that asset because what I'm hearing is that maybe not all distress assets that are coming up maybe. Maybe the best solution isn't to keep it as a Hilton or a Marriott or whatever brand maybe. It's converting it to. Some other type of housing or your job is to basically find the need and fill the need yeah identify the distressed asset and then find or figure out what the best opportunity vehicle is for that for that asset. Moving forward correct absolutely so you know whenever I look at a deal. I always look at it two ways a plan A and A Plan B if plan a doesn't work plan B works you know by default. We can run it as a fotel motel okay. That's the default we can UPF flag. It bring a different franchise do a remark but there's other ways of doing things too you know look for hotel conversions there. Cities are giving grants taking hotels and converting them to multifamil that's a big thing right now because the United States we're we're short by four to five million homes and I'm not even talk. Let's not even talk about single family homes. I mean just homes for people stay and this is right now so a lot of right. Now there's of course for hotels or motels to be con converted to Apartments. Cities are giving grants. There's construction bonds where 90% of it will come from this Bond so there's different Avenues. I mean you know VA is looking for opportunities for VAs to stay there for for Al for alcohol um or exactly for sober living. I should say um and also you can take M hotels and I've seen them into assisted living facilities as well too so. It's not just one way of looking things. I mean you can the thing my job is to maximize that dollar okay whether it's plan a or Plan B and there's so many opportunities I mean if you're in a high barrier. Market in a Leisure area make it into a time share and there's companies out there that will have to buy that um again right um. You know there's people where you can you know there's these condos where they you know the Airbnb. It you know you can buy. Some of these condos well forget the Airbnb you can bring a soft brand like Hilton and these owners can go within that reservation system and put out their um air their condos for rent. So like I said different models. You can rent out your condos. You have 20 30 condos. You you own the lobby and then you have an HOA that will pay into that. You know for your front desk. But there's so many different models of business.
•  I mean there's always new ideas coming up as well. Well. You make it sound very easy. Let me just reassure everyone who's listening to this podcast JD is making it sound a lot easier than it really is. But he has lots of experience and he's been doing this for a long time and it's it's that cumulative knowledge base that you've built over the last 10 years. That's allowed you to really think outside the box yeah because at first you come into it and you it's like. It's like Cookie Cutter but then as as you start to get into it and you start to do more and more deals that allows you that gives you the the opportunity really and that gives the experience gives you the opportunity to really start thinking outside the box off. So it's uh easier said than done but definitely with someone that has enough experience. Like you you can can get all that stuff done you know honestly. I'm not the smartest guy out there. Ian to me you know it's just getting your hands dirty. Sometimes you got to do front. Des. Sometimes you got to be there night a sometimes you got to do housing. You got to you know and that's how you learn it. You know get in get your hands. Dirty I've learned from you know employees because I've I've learned so much from my own employees than anything else. Honestly. You know numbers are one thing but getting inside and getting dirty. That's how I learned operations working from with some of the best managers I've ever had and I've learned you. Know. I have a sales manager. I learned from her every day. I mean there's so much looking at different aspects and different jobs. You got to wear that job. There's so many jobs. You got to wear all of them in case something ever happens. You have to step up. So. I you know. It's you know to me. I just like it's a it's simple. I make it simple. It's this. This is is not too hard um. You know maybe someone coming out from looking outside to inside might look. But it's not that hard. It's you know. It's all about Hospitality. The smallest thing your biggest focus is that guess what can you do to make their stay. The best you know simple things you know when they check in or when they check out ask them hey what was wrong. What is there we can approve on you know when they check into the room. We try to call in right when they check in within the next five minutes hey is everything okay or wrong is there something else we need follow up provide amenities you know a pool is a simple thing a fantastic gym people love to exercise. So the Small Things make a huge difference. You know it's not a lot of these business. Travelers just come sleep and leave they're not there throughout the day so with business Travelers. There's not that wear and tear for instance if it's a Leisure business where there's kids. Those rooms get turned. There's a lot of wear and tear you know you got to touch up the baseboards. I mean the simplest thing so there's a lot of preventive maintenance goals and you know you got to understand your diagram demographics and like I said it's the smallest things that matter having music in the lobby. Uh you know just simple simple things you know everyone smil you know. It's about Hospitality 101. So you are not the first guest that I've had on this podcast. Uh mutual friend of ours suj meta was was on the podcast and he also mentioned very very successful hotelier yeah. Absolutely he's killing out there killing. It also mentioned the same thing hey like sometimes you got to get your for lack of a better word. Your hand sturdy right you got to go in. There you got to you got to do the the the the groundwork and it's interesting how someone that has as many hotels as you do which how many are you at right. Now J man I lost Talent total man. Jeez I have I have to just say double hands I use both hands yeah yeah. I I think I think it's somewhere around uh like a like 12 to 14 right and yeah soone do sometimes buy some. He sell some yeah so you've got your. You've got your like a dozen like we just more or less. But you're still saying hey like occasionally like I got to go do some of the heavy lifting. Suj said the same thing you know he's like hey sometimes I gotta I got to be the boots on the ground and for anyone listening at home right. Now that's thinking uh in in passively investing into a h de Hotel deal make sure that the person the quarterback whoever's uh the general partner or however it's structured right. The person who's going to be in charge of putting that deal together make sure that they are willing to get their hands dirty that they have someone on their team that it's not just going to be like oh. We're going to put a management company in there which is fine by the way. But that isn't their o only option that they have people in their organization that can go there and actually be present when needed AB absolutely. I mean yesterday we had an incident one of my hotels about an hour away where we didn't have a night AIT and asked hey hey if there's no one there. I'll come and drive there and the biggest thing with investors I have to sleep at night. You know I have to come with a clear conscience. You know I'm not going to take someone's money and you know don't care about there. A property manager I I want to sleep at night. You know I'm not going to take someone's money and if there's Capital you know for instance. If there's Capital calls I have to sometimes put my own money I to put my skin in the game because I believe in my product and I believe in our model and so as much as keep passive on the other hand. We're always 24 hours thinking about the asset and our investors at the same time because if they don't make money we don't make money and number two is building that track record. You know my track record fores me and uh I do not want under any condition to destroy that Integrity in that in any deal uh so sometimes you have to roll pull up your sleeves and do the messy work and and on top of it. It's teamwork. It's not. It's not just me. I mean the thing is that I work with my employees. The you know my employees have been there for a long time and it's all about loyalty and working with them. No one's better than you no one's I man I learned from my housekeepers. Every day I mean I mean they can. They can I mean it takes me about an hour to clean one room and I be these guys props. They can do in 20 minutes. You know uh. So you know they they they have that dedication the love and pride for the hotel and sometimes you got to do it for the hotel. You know so you know numbers will say something but the pride and joy seeing people checking in checking out and they have an experience. I mean the hotel behind me. Here you see. This is our lobby and my employees love this. It's built in 1852 and it's it's not your cookie cutter Hotel. You know where you go to Holiday and Best Western 2,000 miles away. It's the same kind of Road. You'll see somewhere else. But this is an experience that people go into and it's a walking Museum. So there's really interesting hotels out. There. They're not your basic cookie cutter hotels. I mean there's hotels that are haunted there. I mean bed and breakfast so everyone there's different experiences out. There you know and people are looking at that yeah. I was going to ask you about that the the the background there. I was like that looks like a Lobby you know yes. It's a it's a Lobby of mine. It's a hotel in Jackson 36 RADS built in 1852. Crazy story is that John Wayne was kidnapped here and there's um ul's Grand State. Here there was rumors a Lincoln stayed here um. So. It's a walking Museum I mean we have the original bar. From there we have pictures from the 1800s so like I said this is not your prototypical hotel. We are converting it to a hilon tapestry brand. Um. We're under some design review but everything is still going to be Peri period correct. You know the biggest thing going to be pain and carpet which is you know every seven years in these franchises you're supposed to um you know change so but yeah you know like. I said this business I don't think any there's no other business like the hospitality business 100%. So I know that we're coming up here on.
•  On time. There are a couple other questions that I had for you and and I I do want to switch gears a little bit back to the physician Focus yeah because I think that there's a lot of value that someone who is in medicine right now can get from this podcast and I want I want you to speak to them right now so what is one secret that most Physicians don't know about hotel investing or we could even open that up maybe to real estate investing in general. But what's like one secret that most Physicians don't know about either hotel or real estate investing that you wish that they knew you know one thing doctors you know being in the hospital doctors always always number one complain of about taxes okay taxes taxes. They always complain you know they're dou to you know you're in in real estate. There's you can basically depreciate your whole salary in one deal and it's amazing okay. A lot of doctors don't know that you know they thought they think in real estate. You have to pay taxes so again doctors physicians. In real estate. You can offset your taxes just having one uh vehicle of a commercial real estate and that's basically it uh you know if you want to save money. You know you can work forever and uh and be paying taxes to Uncle Sam. There's this opportunities I know people. I know doctors who just invest for the tax depreciation. That's all they do that's all they care about but on top of that they're making money too so it's a win-win for them. This would probably be a very opportune moment for me to provide the legal disclaimer that we are not accountants professionals and this is all uh entertainment. You should definitely speak to your CPA or tax professional to learn more about what JD just just mentioned. But it's true. There are a ton of tax benefits. Not you know not just in hotels. I think that you covered the the the benefits especially when you factor in cost segregation to you know to to to Hotel investing but just in in general. Like real estate investing in general there are a ton of tax benefits available to both not really active investors. I mean sometimes General Partners do get to participate in those but really these Investments are a pass through uh vehicle and and and these tax incentives pass through to the limited partners to the investors yeah. So there's a lot of there's a lot there and so I would encourage you that if you are unaware of all of the great tax incentives that are associated with owning uh real estate or investing in real estate either through syndication or private. Equity just understand that you you should probably speak to your accountant and really get a firmer grasp on the the benefits of investing and JD for someone who is sitting on the fence right now like for there's a physician who's sitting on the fence about dipping their toe in the real estate investment space. What would what would you what would you say to that that physician you know I was telling my son you know the most expensive real estate. In the world is the graveyard you know there were untapped ideas. Potentials deals things that were never pursued. You know would could have should have you know um you know and another thing to you know. Physicians too is you know you think about. The future is anxiety. Think about the past is depression think the moment take that one step be you don't have to put so much money put there's deals out there where you could put 10 25,000. Just try get your feet wet and you will see uh the the the numbers or the opportunities in Hospitality. Um just take that first FL and make sure you know confirm the as much as you put your money. In there interview the GP team the general partners because it's a marriage easy to get in hard to get out and they need to have a track record. So what I'm saying is as much as you're putting. Your. Money also look at the track work of the people who are behind it. What have they done what were the exits um. How is it like-minded thinking. Are they thinking about techn the newest Technologies Efficiency do. They have a good track record with franchises. You know um you know. There's a joke here in the hospitality with the franchise owners. Here. It's a stepping stone. You know you get to you start out as you know your economy scale. You know your car Lodge. Then you go to your Best Western. Then you go to your choice hotels. Then you go to IC. Then you go to Maria and then marry on Hilton you know so I started the same way you know. That's how I learned from going from smaller hotels to my big hotels now and that has put a track record and a lot of these franchise. They don't just give the franchise oh you know we're gonna get our you know franchisees and we're have it. They're also looking at our track record too. They're doing their due diligence as well. Too so like I said this is a partnership. It's teamwork um and it goes same thing with their employees too you know we are in it together. If we fail we all fail but but in Hospitality the chances of risk are very minimal but do your own due diligence at the same time 100%. And that is great advice man. The most expensive real estate in the world is the graveyard untapped ideas in potential. It's uh. It's a great life lesson not just investing lesson. Hey listen we in traditional Gold Mine fashion.
•  We want to leave the audience off with your final JD gold nugget uh something that Henry Ford said if you can or you can't you're right so you know the your mind is your enemy or your. Mind can be your best friend pursue. Everything try. It put your first foot in and let whatever you know believe in God energy whatever and if there's a will there's a way so don't have limited beliefs I freaking love that what a way to end the show man so JD if the people who are listening right now want to connect with you. What's the best way for them to connect with you. Where can they find you see I love people. I love building relationships. I'm willing to give my personal um phone number because I believe it if I can help someone it. Somehow. I paid it forward you know so my cell phone number is 916 749 0245 or text me call me um you know. I'll give you my personal email too. It's j as in Jack d as in David S as in Sam I as in ice n as in Nancy G as a garage H as a horse 913 gmail.com or my business. One is as in Jack d as in David at Global capitalgroup.com awesome and for anyone that's listening right. Now all of that will be in the description below. So you don't have to take your notepad out and write down J D yeah. No worries no worries that's awesome man hey and how selfless of you man like you you you have all the reasons in the world to not take people's calls you've got tons of tons of experience lots of bigger problems figer fish to fry. But that's uh very selfless of you to be giving out that information like that for anyone that wants to get a hold of you. So uh thank you and there's no Financial gains. I'm going to help you know and that's that's how I that's how I think you know paid for we selfless sometimes love. It man well JD appreciate your time here man and it's been awesome brother. Thank you thank you for the opportunity to share My Views and opinions all right. Man take care sweet sweet.