Rich Somers is an active real estate investor and entrepreneur holding a portfolio of apartment buildings and short-term rentals valued in excess of $35M. Rich started his real estate investing journey by cashing out his 401K to buy his first apartment building. Rich has grown his portfolio to over 350 units and co-hosts a monthly real estate networking event in his local city of San Diego.
Most recently, Rich founded FortuneCribs as he discovered a shortage of sophisticated, performance-driven operators and a growing need for an all-in-one acquisition, design and management firm in the short-term rental space.
We talked to Rich about partnerships, undervalued opportunities, how he and his business evolved over time, the importance of having a brand, and investing in boutique hotels. LISTEN HERE:
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[00:01 – 07:09] Opening Segment
Rich talks about his background;
He talks about how he got into real estate;
[07:09 – 16:24] 3x Return
How he decided he wanted to be an investor;
Why he wanted to partner up with others;
How you can get a 3x return;
The importance of finding an undervalued opportunity;
Rich talks about how their business evolved over time;
What to look for in a partner;
[16:24 – 33:27] An Evolving Investor
How to grow your social media presence;
How building an audience can help you with your business;
What makes boutique hotels a great investment;
Recession-proof hotels;
How to use the current lending environment to your advantage;
Rich talks about the benefits of seller financing;
He talks about his short term rental business;
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[33:27 – 36:40] Round of Insights
Apparent Failure: Hiring the wrong property manager in his first deal
Digital Resource: pricelabs.co
Most Recommended Book: Cashflow Quadrant
Daily Habit: Using monday.com
#1 Insight for Investing: Take action because we learn by doing. Don’t wait for everything to be perfect to get started.
Best Place to Grab a Bite in San Diego: Santana’s Mexican Food
Contact Rich:
Tweetable Quotes:
“All those risks are real, so put some weight on them!" - Rich Somers
“You will only grow to the level of your constraints, not your potential." - Rich Somers
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