‘They Have Wonderful Recurring Cash Flows,’ Says Kevin O’Leary About This Overlooked Real Estate Investment
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‘Demographics Are In Your Favor,’ Says Kevin O’Leary About This Underrated Real Estate Investment That Pays Monthly
Shark Tank star and seasoned investor Kevin O’Leary recently gave his opinions on a real estate asset sector that is frequently overlooked: resorts. According to him, resorts make great investments because they’re profitable and have strong demand from families, making them a smart option for people who want a steady monthly income.
In a recent podcast, O’Leary explained that post-pandemic travel trends drive families to seek all-inclusive, hassle-free vacation destinations. More people want to travel together, especially in the winter, which has made warm places and beautiful lakeside resorts in Canada very popular.
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“Families want a complete package,” O’Leary said. They want convenience and they come back again and again. This loyalty leads to a lower customer acquisition cost over time and creates what O’Leary calls “wonderful recurring cash flows.”
The podcast’s host, Ken Dunn, explains that resorts usually make more money than regular rental properties. Resorts often have a net operating income (NOI) of 40-50%, while rentals usually stay around 10-20%.
Investing in resorts isn’t as simple as picking a property and hoping for the best. Here are a few key factors to consider, inspired by O’Leary’s insights:
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Pick places where lots of people want to travel. Warm, sunny spots near beaches or pretty lakes are great options. Resorts near big cities or airports can be easier for families to visit.
If you’re new to this, buy a resort that is already running and making money. This way, you’ll earn income immediately instead of waiting to build something new.
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