What if the most overlooked apartment deal in your market is already built, it's just flagged as a hotel?

In this episode, you'll discover how a valuation gap between hotels and multifamily creates forced equity of 40 to 50% before you change a single wall, and why most investors completely miss it.

A CEO who has completed over 30 hotel-to-apartment conversions across six states joins us to break down the exact strategy his firm has used to generate a 20% annualized return since inception. Ryan Sudeck and his team at Sage Investment Group turned an $8.5M distressed hotel into $18.9M in 19 months with a 38% annualized return and have since scaled the model to over 3,000 units and 500 investors.

In this episode, you'll discover:

• Why a hotel trading at a 12 cap automatically becomes more valuable the moment you convert it to residential, and how to calculate the forced equity before you buy
• The exact buy box Sage uses: room count, location signals, and the zoning step that most investors skip, which kills deals
• How to identify hotels in the "death spiral" before they hit the market and why Sage rarely buys on-market
• The invasive due diligence process they use to eliminate budget blowouts behind the walls
• Why the evergreen fund model outperforms syndications for this strategy, and how distributions work from day one
• The community impact case study in Tacoma that took a street responsible for 10% of Washington state murders to zero violent crime

If you're a hotel investor, a multifamily operator, or someone sitting on capital looking for a differentiated real estate strategy, this episode will change how you look at every distressed property you drive past. Don't miss the valuation math breakdown in the first ten minutes; it's genuinely one of the clearest arbitrage setups we've had on this show.

If you found value in this episode, take 30 seconds to leave us a review here. It helps more people find the podcast and keeps us bringing on great guests.

Connect with Ryan Sudeck

Website: http://sageinvestment.com

Email: ryan@sageinvestment.group

LinkedIn: https://www.linkedin.com/in/ryansudeck/

Connect with Michael on Instagram or LinkedIn.

Email Us at info@hotelinvestorplaybook.com

Visit the Hotel Investor Playbook Instagram

Invest with Malama Capital

Submit a deal