How to Turn Underperforming Motels Into Flexible Living Real Estate | Budo Bunul

Within three years, we had about 800 residential properties throughout the greater Philadelphia market. Business is great. It's doing well. But however, early on, we realized that this may not have been an effective way of scaling a business. Because imagine you have 800 addresses and every one of them has an electricity bill. Imagine dealing with 800 internet services. Imagine dealing with 800 potential roof scan leaks. Imagine you'll have to take the trash bins out every week for those assets, for those properties.

Welcome to the Real Estate Pro Show, where we interview real estate investing professionals from coast to coast, as well as the service providers that serve the real estate investing industry. Our goal is simple. Share what's working now to help you improve and scale your business to the next level and meet the pros that can help you get there. Real Estate Pros is powered by Investor Fuel, America's leader in helping real estate investors and professionals build the business you need to live the life you've always dreamed of. Let's start today's show.

Hello, everyone. Welcome back to Real Estate Pros Podcast. I am your host, Meghan Escobar. And today I have the pleasure of sitting down with a gentleman by the name of Budo Brunel. He is the founder of Kiteville. And it's a very interesting niche that he's focused in where Really, what he's doing is transforming underperforming hospitality centers and creating them into new, updated, modernized spaces. And we'll get him to talk more about that in detail, about what it is that he's doing, where he's focusing and all that good stuff. But I just want to say thank you, Budo, for joining us today.

Amazing. Thank you, Megan. It's such a pleasure to be here and share my experiences. I really enjoyed the show as well.

Absolutely. I'm very interested in you talking to our audience about what it is that you're doing because I think there is a significant need for what you're doing for the simple fact that there are so many underperforming motels out there throughout the nation. So with that being said, for somebody who might not know who you are or what Kiteville is, would you mind giving us in the audience a 30,000-foot view of what it is that you guys are focusing on these days and kind of where you're operating?

Absolutely, my pleasure. So as you emphasized that there is a massive inventory of motels across the nation, and they tend to be underperforming, and they're outdated, and their business model has been declining for the last several decades. And because of the limited resources, cash flows, and they're lacking innovation in terms of modernization. And therefore business is declining and also the real asset value has been deteriorating in those spaces. But I tend to focus on problems. If I can find a meaningful solution to a problem, maybe there's an opportunity for all the stakeholders that we can create value. So basically we find motels to be having a really good inventory out there and also we realize that the new generation tend to behave differently. Some economic facts and which makes it those assets extremely valuable in my opinion. For instance, we have over 4 million housing