When starting up a new business, the probability of failure has the tendency to linger in the back of your mind. With so much new information to focus on, like obsessing over sales or how to create unique marketing strategies, it is easy to lose sight of what’s truly important. Successful entrepreneur, Rich Somers, would tell you to prioritize focusing on your mindset and developing a strong mental state to become a strong business owner. Here’s how he did it.
Before entering the real estate field, Rich Somers used to be a federal government employee. Wanting to take control of his life and financial freedom, Rich decided to take a chance and change his career path. After 9 months of studying and educating himself, Somers developed his business strategy.
Taking a risk, Rich walked away from his pension, cashed out his 401K, and bought his first apartment building. “Looking back, all those risks that people allude to are real, so put some weight on them. But on the other side of the balance scale is another risk. I could be 80 years old one day, laying in my bed staring at the ceiling, kicking myself, because I never f—ing tried at anything in life. How about that risk?” explains Somers. Not letting the threat of failure stop him, Rich took action to his real estate plans.
Noticing that everyone was buying multifamily apartments or short-term rentals, Somer’s took an interest in buying boutique hotels. “Once you have the idea, take action,” Rich says. Today, Somers runs two businesses: Somer Capital and FortuneCribs.
Somers Capital operates by helping raise private capital to acquire boutique hotels. They renovate them and operate within their in-house property management company, FortuneCribs. FortuneCribs allows Rich’s team to be vertically integrated and operate these hotels remotely and free of onsite management. With a hyperfocus on buying boutique hotels, Somers has a unique business model.
Somers has been able to create a dynamic business strategy that works for not only himself, but also his teammates. All of his team members receive equity in the real estate deals his company buys. “It’s important for everyone to win together, not just me,” says Rich. This creates an ultimate alignment of interest.
With control of over $50 million in real estate, Rich doesn’t plan on stopping here. Discussing his future plans, Somer tells us, “We have a target to buy $50 million of boutique hotels in 2023 and we’re excited to execute on this. The true power is that through our renovation package and improved operations, we’ll be able to convert this $50 Million into $100 Million worth of real estate.” Continue following and learning more with Rich Somers by listening to his upcoming podcast, “The Rich Somers Report,” available for download on Apple Podcast & Spotify at the end of this month.
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