Matt Faircloth: Why He’s Adding Hotels (9% Caps), 11% Prefs & 1031 TICs

PassivePockets: The Passive Real Estate Investing Show

Host Chris Lopez sits down with Matt Faircloth, author of Raising Private Capital and co-founder of DeRosa Group, to talk hotels, multifamily, and building cash flow today while creating upside for tomorrow.

Matt breaks down why he is adding branded hotels to complement multifamily, how a 9 cap can deliver day one cash flow, and what the real risks are. He also shares simple paths for 1031 sellers to go passive without sacrificing tax advantages.

You will hear real numbers from his 96 key Houston hotel, how he structures A, B, and C share classes, and where he sees quiet distress and better yields in the Midwest.

Key Takeaways:

Hotels can provide day one cash flow at higher caps

Multifamily still matters but value add must drive returns

Simple “lazy 1031” and TIC structures can move active owners passive

Use third party hotel management and plan for brand PIPs

Watch quiet distress and newer assets trading at 7 caps in overlooked markets

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