238: Matt Faircloth: Why He’s Adding Hotels (9% Caps), 11% Prefs & 1031 TICs

Host Chris Lopez sits down with Matt Faircloth, author of Raising Private Capital and co-founder of DeRosa Group, to talk hotels, multifamily, and building cash flow today while creating upside for tomorrow.

Matt breaks down why he is adding branded hotels to complement multifamily, how a 9 cap can deliver day one cash flow, and what the real risks are. He also shares simple paths for 1031 sellers to go passive without sacrificing tax advantages.

You will hear real numbers from his 96 key Houston hotel, how he structures A, B, and C share classes, and where he sees quiet distress and better yields in the Midwest.

Key Takeaways:

  • Hotels can provide day one cash flow at higher caps
  • Multifamily still matters but value add must drive returns
  • Simple “lazy 1031” and TIC structures can move active owners passive
  • Use third party hotel management and plan for brand PIPs
  • Watch quiet distress and newer assets trading at 7 caps in overlooked markets

Disclaimer

The content of this podcast is for informational purposes only. All host and participant opinions are their own. Investment in any asset, real estate included, involves risk, so use your best judgment and consult with qualified advisors before investing. You should only risk capital you can afford to lose. Remember that past performance is not indicative of future results. This podcast may contain paid advertisements or other promotional materials for real estate investment advisers, investment funds, and investment opportunities, which should not be interpreted as a recommendation, endorsement, or testimonial by PassivePockets, LLC or any of its affiliates. Viewers must conduct their own due diligence and consider their own financial situations before engaging with any of the advertised offerings, products, or services. PassivePockets, LLC disclaims all liability for direct, indirect, consequential, or other damages arising out of reliance on information and advertisements presented in this podcast.

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