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What’s up, everyone? As our last blog of 2023, we will get to hear some key points from the interview Lincoln Archibald had with Juan Carlos “JC” Morales about investing in Puerto Rico!
Listen to the full “Funds that Won” podcast here or on your favorite app!
According to his LinkedIn, JC “is the Founder and CEO of Surfside Capital Advisors, a Boston-based strategy and financial advisory firm that helps businesses reach their full potential by designing and executing high-conviction growth and turnaround strategies.
Surfside Capital combines disciplined business planning with transformation initiatives such as capital raising, buy/sell transactions and business restructuring to maximize growth and profitability.”
The Interview with Jaun Carlos "JC" Morales
Lincoln: Tell me about your business!
JC: I always wanted to own beachside property, so I started studying hospitality management, specifically hotel operations. My side job was teaching kitesurfing!
Currently, I have 30 properties: most of them are beach apartments, and all of them have ocean views. We plan on shifting to properties of a higher class, or with a higher barrier of entry. I don’t have any “cookie-cutter” hotels or apartments. I only own property that I get excited about, and that’s what I think everyone should focus on. I’ve diversified my rentals to the point that anyone could spend between $90 and $1,600 per night.
Lincoln: Do your lower-class or higher-class rentals perform better?
JC: For me, it depends on the season. There are times when our higher-class rentals are pulling in most of the revenue, and then there are times when all the weight is on our lower-class rentals.
Lincoln: While we’re on the topic… how do your rentals perform year-round in Puerto Rico? Is there a rainy season that affects your business?
JC: From December to August is our busy season. In the remaining months, we only have 50-60% occupancy.
Lincoln: Where did you get the money to start your business?
JC: I saved a lot of money teaching kitesurfing. It was a lot of 1-on-1 coaching, and I charged $125/hour. I got so busy that one morning, I woke up and I had 13 coaches working for me! I saved $100,000 in 5 years and started investing in leases instead of purchases, which is not typical. But, that’s how I bumped into my strategy; I didn’t mastermind it from the beginning.
I subleased everything at first, and then after a while I thought, “what if I just bought my favorite one?” You have to be creative in real estate. For example, you might be thinking that you need a lot of money to get started. Most people would go to the bank to get a loan. I had little money, but went to the owner of the property.
I built a relationship with them and walked them through the numbers and what I could offer. Then, when the property went up for sale, I was the first person they wanted to contact.
Conclusion: Investing in Puerto Rico with JC Morales
According to JC Morales, investing in Puerto Rico comes down to pursuing properties you love, finding the best deal possible, and building meaningful relationships.
If you want to hear the rest of the interview, click here to visit Lincoln’s podcast, “Funds that Won.”
If you want help starting your own real estate fund, visit Fund Launch!
Thanks for stopping by,
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DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the author
