Richard Fertig, Founder of Stomp Capital, is an innovative Real Estate Developer focused primarily on the Short Term Rental market, creating branded experiences to delight raving fans with his signature “modern hospitality”. Richard shares his proven strategies that continue to bring him financial success with his 59,000+ YouTube followers and 45,000+ Facebook Group members subscribed to Short Term Rental University.
This episode is a Masterclass on how to win BIG in STRs and why it might be the best trade in Real Estate. Richard shares a lesson on vacancy risk & underpriced zoning, how he selects a location and builds pricing power and how he built his worldview on risk/reward at Blackstone. Plus a wild story about Bernie Madoff. Enjoy!
Follow Chris on Twitter: https://www.Twitter.com/FortWorthChris
Follow Chris on LinkedIn: https://www.linkedin.com/in/chrispowersjr/
Learn more about Chris Powers & Fort Capital: https://www.FortCapitalLP.com
Follow Fort Capital on LinkedIn: https://www.linkedin.com/company/fort-capital/
Listen & Subscribe on Spotify: https://open.spotify.com/show/7oIeNSaSJ4zkTQOXiedyOr?si=dEM48cSPQ9OIQ1HiD8sjrg
Listen & Subscribe on Apple Podcasts: https://podcasts.apple.com/us/podcast/the-fort-with-chris-powers/id1410549811
Richard's YouTube Channel: https://www.youtube.com/struniversity
00:18 - Richard’s Career and His journey into STR’s
06:43 - Do you have a filter for what you’re going to look for when handed a pile of money and told to “go find value”?
10:04 - Firing Bernie Madoff
15:26 - What are some immediate red flags you key in on when raising capital?
16:55 - Why STR’s? (Short Term Rentals)
23:06 - Where are these lenders and capital providers?
26:17 - Who fits into the customer category for the STR space?
29:41 - What predictions do you have for this space in a decade?
34:12 - Building Edgecamp Sporting Club in the Outer Banks
47:48 - What zoning matters and how do you get comfortable?
59:46 - What should the average STR owner be thinking about with ordinance?
1:01:48 - Mispriced Zoning in The Hamptons
1:05:30 - How are you managing your properties?
1:09:03 - Are you hiring 3rd party consultants when you’re cultivating the experience?
1:10:29 - How are people finding and booking your properties? How do you think about the risk from 3rd party booking agencies eating into your margins?
1:14:16 - What matters to you in a market when thinking about experiences?
1:19:05 - How are you structuring your deals?
1:20:50 - Are you building your own tech?
1:22:11 - How do you think about cash flow streams when your properties tend to be seasonal?
1:25:21 - Final Thoughts
1:28:10 - How can people find you?