FUNDAMENTALS
MULTIFAMILY
The Next BIGWave: Motel to Multifamily Conversions A STRATEGY TO SOLVE THE AFFORDABLE HOUSING CRISIS
by Ellis Hammond
O
ne of the biggest lessons I learned early on in my career is that an entrepreneur gets paid in relation
to the size of problems he or she can solve. One of the major problems happening in the U.S. econ- omy today is the lack of supply for affordable housing. Home prices across the country are at an all-time high with no slowdown in sight, making it virtually impossible for the majority of Americans to buy a home. There is also an alarmingly low supply of new inventory coming to mar- ket in terms of new homes being built to accommodate this demand. This opens the doors for problem-solving entrepreneurs to look outside the box and determine a solution that can meet this growing demand for affordable housing. INTRODUCING THE MOTEL TOMULTIFAMILYCONVERSION. COVID-19 has devastated many middle- and low- er-class families as well as many industries across the country. One of these industries is the hotel industry. While many of the big brands will come out just fine, thousands of mom-and-pop owned motels across the country will have to shut their doors in 2021. Although sad that many of these motels will go out of business, many multifamily investors are saving them from losing it all by offering to purchase the motel with a
26 | think realty magazine :: may 2021
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