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July 14, 2023

Saltwater Suites

Saltwater Suites

Join me as I sit down with Richard Stroupe, the owner of Saltwater Suites, a unique hotel located in Surf City, North Carolina. You’ll learn all about Saltwater Suites and its wonderful features as well as Richard’s newest  property under construction, Saltwater Resort.

He also created a non-profit, Saltwater Foundation, to give back to the Greater Topsail and Pender communities.

He’s providing opportunities and growth here in the Topsail area and Wilmington, not only in Hospitality, but also as a Software Engineer and Venture Capitalist.

Be sure to stick around until the end - he offers some great advice for new entrepreneurs. Enjoy!

Website: https://www.saltwatertopsail.com/

Saltwater Suites
605 North Topsail Dr
Surf City, NC 28445

Phone: 910-886-4818

Managed by: BlueStar Real Estate in Wilmington
Email: saltwater@bluestarrealestatenc.com

Facebook: Saltwater Suites on Topsail
Instagram: @saltwatertopsail
Twitter: @SaltwaterSuites
TikTok: saltwatertopsail

Cape Fear Ventures: https://capefear.vc/


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Chapters

00:02 - Saltwater Suites

10:51 - Features and Amenities of Saltwater Suites

23:24 - Expanding to Saltwater Resorts

28:34 - From Software to Hospitality

37:07 - Building a Successful Business and Team

Transcript
WEBVTT

00:00:02.762 --> 00:00:24.236
Welcome to the Topsoil Insider podcast, where locals, vacationers and those looking to relocate to the greater Topsoil area can hear all about the wonderful businesses and events in our beautiful coastal Carolina towns, including Hampstead, topsoil Beach, surf City, north Topsoil, holly Ridge and Sneeds Ferry.

00:00:24.236 --> 00:00:34.112
Coming up, hear all about Saltwater Suites, a new hotel with ocean views, luxury bedding, qr codes and keyless entries.

00:00:34.112 --> 00:00:39.000
And get this every sweep comes with a full kitchen, including a dishwasher.

00:00:39.000 --> 00:00:44.045
They also have a washer and dryer in most every room, and there's just so much more.

00:00:44.045 --> 00:00:45.366
Let's get started.

00:00:45.366 --> 00:00:56.701
Welcome, everyone.

00:00:56.701 --> 00:01:00.505
Thanks for tuning in to another episode of Topsoil Insider.

00:01:00.505 --> 00:01:03.347
My name is Krista and I am your host Today.

00:01:03.347 --> 00:01:06.090
I am so excited to be talking to Mr Richard Stroop.

00:01:06.090 --> 00:01:14.876
He is the owner of Saltwater Suites, located just one block from the beach at 605 North Topsoil Drive in Surf City, north Carolina.

00:01:14.876 --> 00:01:18.000
Welcome and thank you so much for joining me, richard.

00:01:18.662 --> 00:01:19.063
Absolutely.

00:01:19.063 --> 00:01:19.787
Thank you for having me.

00:01:20.140 --> 00:01:23.188
Saltwater Suites is a brand new hotel on Topsoil Island.

00:01:23.188 --> 00:01:24.691
When was the building completed?

00:01:25.019 --> 00:01:29.671
We opened our doors May of 22, but it took about 18 months to build.

00:01:30.120 --> 00:01:32.569
And it's 24 units 24 units.

00:01:32.569 --> 00:01:34.763
And they are four unique designs.

00:01:34.763 --> 00:01:36.829
Now, were you a part of that design process?

00:01:36.969 --> 00:01:37.209
Oh yeah.

00:01:38.019 --> 00:01:40.183
So let's talk about the four designs that you have.

00:01:40.183 --> 00:01:44.251
All of them are queen suites, except for one, the barefoot, correct.

00:01:44.251 --> 00:01:45.540
So the queen suite.

00:01:45.540 --> 00:01:56.314
And then you have the nest, you have the low tide and the sundown designs, and those are queen suites, and they're all geared for different vacationers or visitors.

00:01:56.314 --> 00:02:04.713
So the nest is for an entire family, but it's luxury I saw the word luxury in there, so it's a luxury suite.

00:02:05.019 --> 00:02:07.748
It's one of those keywords for SEO, for marketing.

00:02:08.540 --> 00:02:12.270
Yeah Well, it works, made me want to go, that's right.

00:02:12.270 --> 00:02:19.350
So we have the low tide suite, which sleeps six, and we have the sundown, which is more geared for a business traveler.

00:02:19.893 --> 00:02:20.073
Right.

00:02:21.221 --> 00:02:22.610
And they all have ocean views.

00:02:23.020 --> 00:02:24.566
Yes, All three levels have ocean views.

00:02:25.000 --> 00:02:30.592
I thought so because I also look at the videos online and somebody opened up that door and you can just see the ocean.

00:02:31.000 --> 00:02:36.227
Yeah, we have an awesome team that helps build our content on Instagram and Facebook.

00:02:36.227 --> 00:02:38.030
They're great and they do a phenomenal job.

00:02:38.169 --> 00:02:38.751
Keep them.

00:02:38.751 --> 00:02:40.514
Yeah, they're doing a great job.

00:02:40.813 --> 00:02:41.314
Absolutely.

00:02:42.060 --> 00:02:45.328
And they're hotel suites, or more like condos, instead of hotel rooms.

00:02:45.328 --> 00:02:46.692
Correct, talk to me about that.

00:02:47.501 --> 00:03:10.676
So the original concept of the suite or the open floor model that we had really originated from my time at Loggerhead, and so I bought Loggerhead in 2017 with the idea of doing small renovations over time you know, just to manage cash flow and the whole process of the work involved, since I still had a full time job up in Virginia.

00:03:11.600 --> 00:03:14.025
Oh, you were doing Loggerhead while you were still living in Virginia.

00:03:14.286 --> 00:03:14.667
Correct.

00:03:14.667 --> 00:03:16.169
Wow, yeah, I still live in Virginia.

00:03:16.169 --> 00:03:17.031
Oh, you do.

00:03:17.170 --> 00:03:20.808
Yeah, that's why it was hard to get you in my schedule.

00:03:20.868 --> 00:03:22.094
Okay, now I understand.

00:03:22.094 --> 00:03:23.000
I might as well live in North Carolina.

00:03:23.000 --> 00:03:24.983
I'm down here like every two or three weeks.

00:03:25.002 --> 00:03:25.943
You should move down here.

00:03:25.943 --> 00:03:26.884
Everybody else does.

00:03:26.884 --> 00:03:28.387
I'm originally from North Carolina.

00:03:28.387 --> 00:03:29.008
Are you my?

00:03:29.027 --> 00:03:30.049
intent is to come back.

00:03:30.370 --> 00:03:33.234
Okay, yeah, I'm sorry, let's go back to Loggerhead.

00:03:33.454 --> 00:03:38.497
Yeah, so when I bought the Loggerhead in 2017, there was a bit of deferred maintenance.

00:03:38.497 --> 00:03:41.969
Over time they just age and wear and tear.

00:03:41.969 --> 00:03:45.068
You have to these depreciating assets.

00:03:45.068 --> 00:03:46.671
You have to keep up and maintain.

00:03:47.000 --> 00:03:48.425
And it's hard with the ocean air.

00:03:48.425 --> 00:03:49.508
It's really difficult.

00:03:50.000 --> 00:04:06.188
But what made it even more difficult is that the idea was to transform Loggerhead from the original format that it had into something completely different, where it looked more like a bedroom you'd have in a beach house as far as the appeal and the colors and the floor.

00:04:06.188 --> 00:04:27.850
On the backside of the Loggerhead where the original units were built, there was one in the corner I can still remember the number eight is where we named it and they had this sink area over to the side and that's where they used to, because a bunch of peer fishermen used to rent there and they would bring their fish back and they would clean it in this big open sink.

00:04:27.850 --> 00:04:47.052
During the remodel we decided to basically take that room and that open sink area and combine it into a concept where we'd have a full kitchen, a double bed and then a little, I would say, a couch, love seat area and a TV, almost like a Hampton Inn type model.

00:04:47.052 --> 00:04:51.220
So once we did that, we're like oh my God, this thing's going to be really nice.

00:04:51.259 --> 00:04:53.026
A lot of people came by and wow, this is great.

00:04:53.026 --> 00:04:56.567
This doesn't exist on the island short term hospitality.

00:04:56.567 --> 00:05:02.451
To find this type of experience you'd have to rent a house, and mostly for seven days.

00:05:02.451 --> 00:05:05.687
There's no short term option for something of that nature.

00:05:05.687 --> 00:05:21.911
So then we decided on the dolphin street side there were six total 12 small rooms, about I don't say 160 square feet or tiny and we decided to basically collapse the six into three and three.

00:05:21.911 --> 00:05:26.050
So we made smaller suites on the dolphin side.

00:05:26.050 --> 00:05:29.209
So there's three on the top, three on the bottom with kitchenettes.

00:05:29.209 --> 00:05:38.911
It's not a full kitchen, but it's enough where you have a sink and a small refrigerator to give them the option that if they wanted to do some cooking in the room that they could.

00:05:39.339 --> 00:05:40.646
I think that's really important too.

00:05:40.646 --> 00:05:45.028
When you're traveling with your kids, you kind of need that option, absolutely yeah.

00:05:45.269 --> 00:05:49.185
Yeah, especially what we've seen today talking to the chamber folks.

00:05:49.185 --> 00:06:04.139
There's more and more flexibility in today's hospitality market where you don't have to rent a house for seven days if you wanted to rent a product like what we have at saltwater, which is a condo can sleep up to six, eight people.

00:06:04.139 --> 00:06:12.762
If you really want to stuff them in there and you have a full kitchen and everything's baked in there and you have a little small living room area to hang out, they can rent it by the day.

00:06:13.184 --> 00:06:14.387
Yeah, I saw that.

00:06:14.387 --> 00:06:15.350
I was surprised at that.

00:06:15.350 --> 00:06:19.499
There's no minimum and there are minimums with the vacation rentals.

00:06:19.519 --> 00:06:31.004
Yeah, most of our I would say competitors, do a two day minimum during the season and that's to contend with the cost, the cost of cleaning and turnover and laundry, just so that they could make a profit.

00:06:31.004 --> 00:06:43.892
We decided that to give people more flexibility, we do one night stays, no minimums, and we do absorb a fee for cleaning, but we do break a little bit of that off and give it to the person.

00:06:43.892 --> 00:06:52.663
So whether you stay one night, two nights or 10 nights, it's still the same fee as far as the cleaning goes Because there's an option to clean the room.

00:06:52.704 --> 00:06:55.050
we can have them come and clean it at their expense.

00:06:55.690 --> 00:06:59.487
Okay, so they can request mid-stay or multiple times during this day.

00:06:59.548 --> 00:07:02.822
if they want extra cleanings Now was this at loggerhead or is this currently?

00:07:02.822 --> 00:07:03.382
At saltwater.

00:07:03.382 --> 00:07:03.882
This is at the suite.

00:07:03.882 --> 00:07:05.444
Yeah, this is at saltwater.

00:07:05.444 --> 00:07:06.365
Saltwater suites, okay.

00:07:08.160 --> 00:07:09.906
So when did you stay with loggerhead?

00:07:11.050 --> 00:07:14.076
I finally sold Loggerhead July 22.

00:07:14.076 --> 00:07:16.963
I sold it to the operator at the head at the time.

00:07:17.023 --> 00:07:21.687
Okay, let's go back to the saltwater suites and talk about the features that you offer there.

00:07:21.687 --> 00:07:26.158
Sure, in the saltwater suites, you have full kitchens and all the units.

00:07:26.399 --> 00:07:27.562
Full kitchens and all the units.

00:07:27.810 --> 00:07:31.904
And these are like full size stainless steel appliances.

00:07:31.964 --> 00:07:39.654
Yeah, fully stocked with all the utensils, plates and yep, you see, you can go right to cooking if you need to Love that, with the dishwasher and everything's ready to go.

00:07:39.654 --> 00:07:40.757
A dishwasher too, yeah.

00:07:41.259 --> 00:07:53.060
And then there's a dining table there for you to use, and then this was something that I loved, especially with children again, 21 of your rooms have a front loading, washer and dryer.

00:07:53.100 --> 00:07:53.401
Correct.

00:07:53.541 --> 00:07:54.463
That is huge.

00:07:54.624 --> 00:07:55.151
Yeah, 21.

00:07:55.170 --> 00:07:56.274
Especially at the beach.

00:07:56.396 --> 00:07:56.757
Yes.

00:07:57.199 --> 00:07:58.785
With the sand and the salt water.

00:07:58.785 --> 00:08:00.651
You got to come in and get washed up.

00:08:00.812 --> 00:08:01.995
Yeah, yeah.

00:08:01.995 --> 00:08:05.843
No other hospitality product out there has a washer and dryer, except for us.

00:08:06.189 --> 00:08:08.817
Yeah, you also have three ADA rooms.

00:08:09.038 --> 00:08:13.310
Yes, those three rooms do not have washer and dryer in those rooms.

00:08:13.310 --> 00:08:25.480
However, we have four downstairs that our team utilizes for turnover and we provide the ADA guests options of doing their laundry for them in those washer and dryer rooms.

00:08:25.600 --> 00:08:26.850
You offer laundry service.

00:08:27.091 --> 00:08:27.973
Just for those rooms.

00:08:27.973 --> 00:08:31.002
Yes, we want to make sure that everybody has a similar experience.

00:08:31.002 --> 00:08:32.354
Okay, that makes sense.

00:08:32.354 --> 00:08:33.238
Yeah, for your charge.

00:08:33.899 --> 00:08:37.994
And I remember you saying that y'all paid special attention to your bedding.

00:08:37.994 --> 00:08:38.936
Tell me about that.

00:08:39.496 --> 00:08:55.039
Yeah, one of the things I noticed at Loggerhead was the bedding was okay, but of course, when you try to take opportunities to create different experience, you want to invest in a little more areas and I thought bedding, pillows, comforter sheets, things like that.

00:08:55.039 --> 00:08:56.726
You need to go a little over the top.

00:08:56.726 --> 00:08:59.357
You don't want to feel like you're sleeping in paper towels.

00:08:59.437 --> 00:09:00.523
No, I think you?

00:09:00.743 --> 00:09:02.932
Yeah, we've had a lot of compliments on our bedding.

00:09:02.952 --> 00:09:03.375
You have.

00:09:03.414 --> 00:09:08.495
Yeah, awesome, yeah, and I think we spent probably three times the budget that we allocated for.

00:09:08.495 --> 00:09:13.139
But I think it's important because if you don't have a good night's sleep, then it cascades from there.

00:09:13.139 --> 00:09:19.943
So we want to make sure that the pillows are great, the sheets are fantastic, the bedding is very comfortable, the mattresses are phenomenal.

00:09:20.225 --> 00:09:28.443
Wonderful yeah, and you have smart HD TVs in all the rooms and you have your website said super high speed internet.

00:09:28.443 --> 00:09:30.354
Yes, we have two T1 lines.

00:09:30.754 --> 00:09:45.339
So we ran originally ran one T1 line just for internet and everything all the IoT devices and TVs and such we devote to that and then we decided to run cable to, so we had a whole nother T1 line just for cable TV.

00:09:45.339 --> 00:09:47.331
So that way doesn't ride on the same pipe.

00:09:47.331 --> 00:09:54.730
So basically the latency on the internet is not going to be dragged by cable, so you have different uses.

00:09:55.452 --> 00:09:55.773
Gotcha.

00:09:55.773 --> 00:10:05.356
Yeah, okay, other saltwater suite features that I noticed online is you have four new electric vehicle charging stations.

00:10:05.538 --> 00:10:08.102
Yes, we just installed those a couple weeks ago.

00:10:08.549 --> 00:10:10.956
Are they heavily used so far, really?

00:10:11.375 --> 00:10:17.442
The day we went live the very day we went live, a Tesla owner pulled right in and said can I hook up?

00:10:17.442 --> 00:10:18.164
That's awesome.

00:10:18.164 --> 00:10:19.109
Awesome, do it.

00:10:19.249 --> 00:10:21.759
Let's talk about some of the other things that you offer your guests.

00:10:21.759 --> 00:10:25.572
You have eight guest beach bicycles on your site for use.

00:10:25.693 --> 00:10:31.073
Yes, there's a QR code that our property manager set up, so basically it's a liability waiver.

00:10:32.379 --> 00:10:33.361
Okay, that makes sense.

00:10:33.423 --> 00:10:36.514
And then they get a code to unlock the bike and then they can just use the bike.

00:10:36.514 --> 00:10:40.208
So we wanted to try to provide as much experience to our guests.

00:10:40.208 --> 00:10:41.312
So the bikes are one.

00:10:41.312 --> 00:10:44.484
We just bought, some Shabu-Mes I saw that.

00:10:44.484 --> 00:10:45.769
It's first come, first serve.

00:10:45.769 --> 00:10:48.541
But again, they don't have to go out and buy one, they can just use ours.

00:10:48.962 --> 00:10:51.432
They're expensive and they're very popular right now.

00:10:51.852 --> 00:10:55.702
Yeah, and we're also reaching out to the community, like New York Deli, for example.

00:10:55.702 --> 00:11:03.195
They're doing a prototype with us where they give us a limited menu and we can send it to our guests before they come.

00:11:03.195 --> 00:11:07.690
So that way if they want to order lunches or dinners, they can pre-order.

00:11:07.690 --> 00:11:09.217
And this is a pass-through.

00:11:09.217 --> 00:11:10.645
It just goes right to New York Deli.

00:11:10.645 --> 00:11:12.455
We just say, hey, here's the menu.

00:11:12.455 --> 00:11:13.559
Talk to these guys.

00:11:13.559 --> 00:11:16.855
So all the payment and everything coordination is handled in New York Deli.

00:11:16.855 --> 00:11:19.326
But then they deliver it to the suite, two rooms yeah.

00:11:19.488 --> 00:11:22.018
So if you're coming off the beach, spend the whole day.

00:11:22.038 --> 00:11:22.538
That's so cool.

00:11:22.720 --> 00:11:25.913
Yeah, and that way you can take a shower and walk outside your food there.

00:11:26.134 --> 00:11:27.496
Everything's also high-tech.

00:11:27.496 --> 00:11:28.359
I love it.

00:11:28.359 --> 00:11:30.222
Tell me about your common area.

00:11:31.331 --> 00:11:33.159
So the common area downstairs is cool.

00:11:33.159 --> 00:11:35.049
We were able to set up like a ping pong table.

00:11:35.049 --> 00:11:39.184
There's like a gaming area with chairs and tables and things.

00:11:39.184 --> 00:11:41.715
People could sit out there and just hang out, drink beer.

00:11:41.715 --> 00:11:44.004
There's a nice breeze that comes through.

00:11:44.004 --> 00:11:52.339
There's an outdoor shower in the back If parents want to bring their kids, and while they're washing off the sand of the chairs and the toys, you know, the kids can play out there.

00:11:52.399 --> 00:11:53.202
So it's ritual.

00:11:53.202 --> 00:11:54.005
That's a great idea.

00:11:54.005 --> 00:11:57.620
I love that it's pet friendly or you have some pet friendly suites.

00:11:57.841 --> 00:12:01.734
We have four pet friendly and we're talking about increasing it to five.

00:12:01.734 --> 00:12:05.282
Really, yeah, there's a lot of demand for pet friendly suites.

00:12:05.282 --> 00:12:09.341
The problem is that there's people that can't stay in pet suites.

00:12:09.341 --> 00:12:23.450
So basically, when we clean our beds, we specifically shrink, wrap the pet rooms and keep it separate from the non-pet rooms, just so that those are the same sheets in the same rooms you know, just for hyperalagenic and stuff.

00:12:23.811 --> 00:12:24.491
That makes sense.

00:12:24.491 --> 00:12:29.152
Yeah, it is hard to find a good, pet friendly hotel because we travel with ours as well.

00:12:29.493 --> 00:12:31.980
Well, yeah, having a pet's like having a member of the family.

00:12:32.442 --> 00:12:33.466
She's our third child.

00:12:33.466 --> 00:12:36.624
Yeah, how far away is the beach access from your hotel?

00:12:36.624 --> 00:12:38.774
I know you're one block off of the beach, is that right?

00:12:38.933 --> 00:12:39.335
That's right.

00:12:39.335 --> 00:12:41.500
We're one block back from the beach access.

00:12:42.263 --> 00:12:44.128
And free on-site parking.

00:12:44.408 --> 00:12:44.589
Yep.

00:12:44.609 --> 00:12:50.495
And then tell me about the wedding event planning and the groups and the meetings, because I don't think we discussed that over the phone.

00:12:50.615 --> 00:13:12.090
Yeah, so one of our strategies for increasing sales is to reach out to groups, organizations and try to organize events like weddings or a larger block type offerings or discounts, okay so we're actively engaging in community there and trying to figure out hey, if you're coming to a wedding on North Topsill or on the beach, we'd love to host you and your team.

00:13:12.090 --> 00:13:16.820
I know our property manager has booked several weddings already this year.

00:13:17.000 --> 00:13:18.691
Awesome, okay, good Now.

00:13:18.691 --> 00:13:22.307
We talked about your QR codes earlier and everything being automated.

00:13:22.307 --> 00:13:23.874
We don't check in at the front desk.

00:13:24.375 --> 00:13:24.596
Right.

00:13:24.797 --> 00:13:27.206
And get your key issued and then go to your room.

00:13:27.206 --> 00:13:30.135
Let's talk about how, what the check-in process is like for you.

00:13:30.275 --> 00:13:31.158
Absolutely so.

00:13:31.158 --> 00:13:47.006
When you book a reservation, everything's handled online and within a day or two hoping to get it like automatic, you receive a welcome email with basically everything about your room full description pictures, everything that you possibly could want and also recommend.

00:13:47.006 --> 00:13:50.557
Hey, here's some things you might want to bring with you, but here's what you get with the room.

00:13:50.798 --> 00:13:53.672
That's cool, and also it spits out a code.

00:13:53.672 --> 00:14:07.399
Each one of our rooms has a automatic door lock that resets itself, so that way, when you come, you have a unique code just for you, and when you leave, that code expires and then the next guest will have a code of their own.

00:14:07.418 --> 00:14:12.982
So it's like just a 10 key code pad there that you'll just punch in some numerical digits and get in, okay.

00:14:13.004 --> 00:14:16.193
Yep and it's fully automated and integrated with our platform.

00:14:16.193 --> 00:14:21.153
And if somebody has a problem, if they forget their code or whatever, yeah, oh yeah.

00:14:21.153 --> 00:14:26.695
There's another QR code that they send a request to, and we have a team that manages around the clock.

00:14:26.975 --> 00:14:28.041
Okay If they need help.

00:14:28.041 --> 00:14:30.432
So two o'clock in the morning I'm locked out of my door.

00:14:30.732 --> 00:14:32.379
That's right, someone can help me get in.

00:14:32.419 --> 00:14:35.773
Yes, okay, yeah, you've been drinking too much at the trailer bar.

00:14:35.773 --> 00:14:43.673
You can still get in, okay, and you mentioned that you do have on-site personnel there Some portion of the day.

00:14:43.793 --> 00:14:49.833
Yes, there is a team that is on-site during the day, normally around eight nine to about three or four.

00:14:49.833 --> 00:14:55.456
Okay, yeah, so if you need help, there's someone there that could possibly help you.

00:14:55.756 --> 00:14:56.077
Okay.

00:14:56.077 --> 00:15:00.756
Yeah, you mentioned head and shoulders model to me on the phone and I don't know what that means.

00:15:00.756 --> 00:15:01.821
Can you explain that to me?

00:15:02.263 --> 00:15:02.764
Absolutely so.

00:15:02.764 --> 00:15:11.759
When I was investigating the whole industry because I'm not a hospitality guy, I'm not a developer I fell into this kind of by accident.

00:15:11.759 --> 00:15:29.923
One of the things I noticed and a lot of people around here already know this, but I coined it a head and shoulders model where you have your spring season March, April, may is a shoulder and then you've got June, july, august is your head, that's like your high season and then your September, october could be the other shoulder.

00:15:29.923 --> 00:15:42.813
So as things ramp up, you've got a heavy demand, a surge for people coming here, and it all starts around March, april and it all subsides around October, november, okay, and then December, january, february is like the dead period.

00:15:42.953 --> 00:15:46.062
Yeah, yeah, although I think that's changing a little bit.

00:15:46.062 --> 00:15:48.576
It is as more people move here and just kind of make it home.

00:15:48.576 --> 00:15:50.100
There was a full shutdown.

00:15:50.100 --> 00:15:54.445
You know, in the wintertime it was hard to even find a restaurant that was open.

00:15:54.445 --> 00:15:57.479
But now I noticed that they're taking much shorter breaks.

00:15:57.479 --> 00:15:59.831
If they're taking a break, it's a much shorter break during the winter.

00:16:00.131 --> 00:16:07.446
Yeah, I remember when I bought Ligerhead they actually shut everything down after Thanksgiving and they didn't open back up until March 1st.

00:16:07.546 --> 00:16:08.892
And that was the first thing I changed.

00:16:08.912 --> 00:16:11.041
I was like we're not shutting down.

00:16:11.041 --> 00:16:20.230
I'm like the weather here is great, you could have a weekend of 60 or 70 degrees in the wintertime, and people from Charlotte, raleigh, you know want to escape for the weekend.

00:16:20.230 --> 00:16:20.951
So we're going to come.

00:16:21.131 --> 00:16:24.794
I love that Good Talk about your COVID methods.

00:16:25.414 --> 00:16:29.086
We take COVID very seriously as far as how we clean what we clean.

00:16:29.086 --> 00:16:32.806
So there's a method of disinfecting the room.

00:16:32.806 --> 00:16:49.296
So, for example, we wash everything after somebody leaves, run it through the dishwasher very high steam temperatures, disinfecting and the chemicals that we use and the process that we use and as far as just making sure that everything's fully sanitized, exactly.

00:16:49.296 --> 00:16:51.023
Yeah, and we have keyless entry.

00:16:51.023 --> 00:16:56.125
Everything's kind of nature facing, so you don't have to worry about getting around a lot of people.

00:16:56.315 --> 00:16:58.342
Okay, I also want to say I love your website.

00:16:58.342 --> 00:16:59.941
I was on that heavily last night.

00:16:59.941 --> 00:17:01.217
It's so beautiful.

00:17:01.217 --> 00:17:02.140
I love the colors.

00:17:02.140 --> 00:17:04.018
I love on the homepage.

00:17:04.018 --> 00:17:13.242
That picture like pushing out over the waves and then pushing out over the ocean is so pretty and that's what people come here for and that's just the most welcoming thing.

00:17:13.242 --> 00:17:14.538
And I love your logo.

00:17:14.538 --> 00:17:22.618
It's all it all works so well together and scroll down and everything's really clean and crisp and white and it's perfect.

00:17:22.700 --> 00:17:23.462
It's been a struggle.

00:17:23.462 --> 00:17:30.522
We so the first website we had, we partner with the company and we told them exactly what we wanted.

00:17:30.522 --> 00:17:35.926
We gave them several examples and the outcome wasn't exactly what we wanted.

00:17:35.926 --> 00:17:39.324
So we respectfully worked with them for a while.

00:17:39.324 --> 00:17:41.160
Say, look, this is really cutting it for us.

00:17:41.160 --> 00:17:44.279
This is what we need, and I give credit to my PM.

00:17:44.279 --> 00:17:55.560
She found another developer, I found a developer, she found a developer and we compared contrast and eventually we went with her developer, who specializes in hospitality and stuff, and I just fed her.

00:17:55.560 --> 00:17:56.805
Look, here's my requirements.

00:17:56.935 --> 00:17:57.378
That's this.

00:17:57.621 --> 00:18:00.699
And it took about four months Slowly developing.

00:18:00.739 --> 00:18:01.762
but it's beautiful.

00:18:01.762 --> 00:18:03.040
Yeah, are you proud of it?

00:18:03.477 --> 00:18:04.486
I am you should be.

00:18:04.486 --> 00:18:05.378
It's a lot better than it was.

00:18:05.378 --> 00:18:06.278
It's gorgeous.

00:18:06.875 --> 00:18:13.306
I encourage everyone to go and look at the website, but it's saltwatertopsellcom not saltwatersweetscom.

00:18:13.385 --> 00:18:13.547
Yes.

00:18:13.915 --> 00:18:19.095
And then, while we're on the name, I also love the name Saltwater Suites it's it's perfect for our area.

00:18:19.095 --> 00:18:20.480
So how did you come up with the name?

00:18:20.835 --> 00:18:21.618
It's a funny story.

00:18:21.618 --> 00:18:29.905
So we partnered with Port City Design Group out of Wilmington to create those four designs the barefoot and the nest.

00:18:29.905 --> 00:18:45.084
So Danielle Valente she owns Port City Design did a phenomenal job putting everything together and it's different because most of the rooms you go into you find your coastal type decor.

00:18:45.384 --> 00:18:52.287
I would say, this one is completely different, and I hired her to do the loggerhead work as well.

00:18:52.287 --> 00:18:54.657
That's how I met her and I will.

00:18:54.657 --> 00:18:56.242
You know, I gave it some time.

00:18:56.242 --> 00:18:57.046
It was a little different.

00:18:57.046 --> 00:18:58.441
You almost have to put a different hat on.

00:18:58.441 --> 00:18:59.901
Ok, this looks a little modern.

00:18:59.901 --> 00:19:01.555
I'm not really used to it.

00:19:01.555 --> 00:19:03.494
You have to think outside the box a little bit.

00:19:03.494 --> 00:19:05.301
But after a while you get used to it.

00:19:05.301 --> 00:19:06.862
Like all right, I can dig this.

00:19:06.994 --> 00:19:09.624
So oh, you mean the look and feel of the room design.

00:19:09.756 --> 00:19:10.057
Yes.

00:19:10.318 --> 00:19:11.849
Oh, it took you a minute to get used to that.

00:19:11.950 --> 00:19:14.280
Yeah, yeah, because again, it's you train.

00:19:14.280 --> 00:19:17.503
You know, I guess, like our brains run on a script and it's what we're used to.

00:19:17.503 --> 00:19:23.861
And if you're used to a design, pattern or surrounding and like a standard hotel room, like you walk into a hilton.

00:19:23.881 --> 00:19:24.864
you know what to expect.

00:19:25.095 --> 00:19:30.040
Yeah, and if you stay in a beach hotel in a beach, then you're probably going to get beach decor.

00:19:30.061 --> 00:19:36.936
You know a lot of birds, seashells yes, ocean, very cliche type things up on the wall yeah.

00:19:37.156 --> 00:19:40.260
And it still feels coastal, it just feels modern coastal.

00:19:40.375 --> 00:19:41.240
It's very modern.

00:19:41.240 --> 00:19:43.363
I love the way that it's decorated.

00:19:43.363 --> 00:19:50.740
The furniture is not your typical hotel furniture, it's not big and bulky and dated, and it's beautiful, it's light, it's airy.

00:19:50.954 --> 00:19:54.596
Yeah, Again, it's something I think you'd find in a beach house Again.

00:19:54.596 --> 00:19:57.305
You walk into a room and you feel the same type of experience.

00:19:57.496 --> 00:19:59.723
Yeah, for sure, they did a great job.

00:20:00.154 --> 00:20:00.415
Yeah.

00:20:00.455 --> 00:20:01.359
So tell me about the name.

00:20:01.359 --> 00:20:05.940
She actually picked the name she did yeah, so how did she come up with it?

00:20:06.836 --> 00:20:08.582
She's a fabulous person.

00:20:09.637 --> 00:20:10.521
Yes, she's very creative.

00:20:10.521 --> 00:20:11.758
Yeah, it's like it's.

00:20:12.459 --> 00:20:15.567
It's basic, but it's also very nice.

00:20:15.567 --> 00:20:16.755
Saltwater suites, all right.

00:20:16.755 --> 00:20:19.196
That kind of rings a little bit it does.

00:20:19.196 --> 00:20:20.699
I love it yeah.

00:20:21.385 --> 00:20:25.865
We talked about this earlier, but I do love your Facebook presence and the team that you have doing that.

00:20:25.865 --> 00:20:27.681
It always captures my attention.

00:20:27.681 --> 00:20:32.335
If video goes up through my feed, I'm like I know that's all watersweeds, click on it, yeah.

00:20:32.335 --> 00:20:41.218
And then it's the most recent one that got my attention so much is there's someone laying in bed and she throws the covers off and walks to it and it opens the door and looks out and it's that's right.

00:20:41.238 --> 00:20:43.438
Yeah, it's amazing, her name's Anna.

00:20:43.438 --> 00:20:44.162
She's fantastic.

00:20:44.234 --> 00:20:46.061
Oh Anna, hey Anna, I love your work.

00:20:46.295 --> 00:20:46.516
Yeah.

00:20:46.576 --> 00:20:47.500
You're doing a great job.

00:20:48.555 --> 00:20:49.680
We always talk with one another.

00:20:49.680 --> 00:20:50.858
Ok, here's the next reel.

00:20:50.858 --> 00:20:52.044
I need something like this.

00:20:52.044 --> 00:20:53.421
She's OK, great, what do you think about this?

00:20:53.421 --> 00:20:55.182
And then we throw some stuff around.

00:20:55.182 --> 00:20:56.519
So she's fantastic.

00:20:56.519 --> 00:20:57.343
Yeah, she's really good.

00:20:57.835 --> 00:20:58.819
I'm almost done gushing.

00:20:58.819 --> 00:21:01.263
I also love your community involvement.

00:21:01.263 --> 00:21:04.965
I want to talk a little bit about what you're doing to give back to the community.

00:21:04.965 --> 00:21:07.523
Tell me about Saltwater Foundation.

00:21:08.595 --> 00:21:15.443
So the Saltwater Foundation is dedicated to being very active in the community and giving back to the local charities.

00:21:15.443 --> 00:21:25.913
I set this up and again we wanted to create a mechanism to improve the lives and well-being of the individuals in this area Topsole, wilmington area.

00:21:25.913 --> 00:21:32.701
We provide grants to organizations who are very thorough with their job and very specific at what they do.

00:21:32.701 --> 00:21:51.807
We have a lot of recommendations and again we're trying to spread it out into different groups, like we've given to the Humane Society we've given the food banks and we've given to area groups like the Real Housewives or the Paddle for Troops, habitat for Humanity just some of the recent ones that we had.

00:21:52.268 --> 00:21:54.833
So far we've given out over $55,000.

00:21:55.233 --> 00:21:57.298
Wow, that's amazing.

00:21:58.000 --> 00:22:01.450
And my goal is to hit $500,000, but again, it's going to take some time.

00:22:01.490 --> 00:22:02.714
Yeah, that's a big goal.

00:22:02.915 --> 00:22:03.759
Yeah.

00:22:03.759 --> 00:22:10.742
So to me it's hey if saltwater wins, and we're doing good, we're getting them back to the community and we're reinvesting in the community.

00:22:10.742 --> 00:22:19.030
So if the old cliche, the tide rouses all boats, so we're just trying to raise all boats around us and give back.

00:22:19.251 --> 00:22:19.913
That's really cool.

00:22:19.913 --> 00:22:20.895
Thank you for doing that.

00:22:20.895 --> 00:22:27.590
Okay, let's talk about the big news You're expanding.

00:22:28.152 --> 00:22:28.472
Yes.

00:22:28.833 --> 00:22:31.807
So let's talk about saltwater resorts.

00:22:31.866 --> 00:22:33.330
Crazy, right, I love it.

00:22:33.330 --> 00:22:35.537
What are you doing, man?

00:22:36.839 --> 00:22:47.380
You did mention a few of the hurdles that you had to jump over getting saltwater suites up and running, and so I was a little surprised to hear that you're already moving forwards with something that's bigger even.

00:22:47.741 --> 00:22:47.982
Yeah.

00:22:48.084 --> 00:22:51.893
Tell me about what the difference is between saltwater resort and saltwater suites.

00:22:52.594 --> 00:22:52.875
Okay.

00:22:52.875 --> 00:23:02.710
So number one we're basically carbon copying the same suite design again at the 400 blocks or two blocks down closer to surf city.

00:23:02.710 --> 00:23:15.737
Okay, there was a piece of property for sale and we had that opportunity and went back and forth about a year and a half and finally purchased that property and I felt I've already got the design, we've got the engineering documents, we have a great team.

00:23:15.737 --> 00:23:23.758
I've got a good GC, the electrician, the HVAC provider, the plumber All these people are really good to work with.

00:23:23.758 --> 00:23:28.903
And if I can try to keep my cost in check, it might work.

00:23:29.284 --> 00:23:32.132
And I knew at this time I had to sell loggerhead to make this work.

00:23:32.132 --> 00:23:35.765
So my intent was to keep loggerhead and to keep saltwater.

00:23:35.765 --> 00:23:43.946
But after thinking for a while I'm like maybe it's best to sell loggerhead and then build saltwater.

00:23:44.007 --> 00:23:46.853
Number two and to have those because it's a different.

00:23:46.853 --> 00:23:48.857
It's a night and day difference.

00:23:48.857 --> 00:23:56.652
Very similar hospitality style, but I think the experience you get at saltwater is different than you would have with any other hospitality offering.

00:23:56.652 --> 00:24:01.294
So I wanted to stay consistent in the brand and what we were trying to do.

00:24:01.294 --> 00:24:05.894
So that's what I'm basically decided is all right, I'm going to pull the trigger.

00:24:05.894 --> 00:24:06.878
I bought the land.

00:24:06.878 --> 00:24:08.144
We started buying material.

00:24:09.131 --> 00:24:11.003
Was it all one property or did you have to?

00:24:11.003 --> 00:24:13.073
Okay, it was almost a full acre, okay.

00:24:13.285 --> 00:24:13.546
Yeah.

00:24:13.546 --> 00:24:18.586
So after we've successfully negotiated and got it under contract, I started to procure material.

00:24:18.586 --> 00:24:33.217
That was hurdle number one for the suites is that we had supply chain issues because of COVID and the shipping like our elevator motor was sitting at the port of Los Angeles for six months and we actually opened without an elevator.

00:24:33.257 --> 00:24:33.659
Oh really.

00:24:33.880 --> 00:24:39.756
Yeah, and that's one of the things the city helped us out with, and the elevator was finally operational in October.

00:24:40.017 --> 00:24:43.934
Oh wow, so it's almost four months after the yeah, there were a few disruptions there.

00:24:44.125 --> 00:24:49.817
Yeah, so we started buying material for the new project and putting them in storage containers.

00:24:49.817 --> 00:24:53.422
And again we have to get to the city to file permits and so every six months.

00:24:53.422 --> 00:25:07.936
And then, once we were able to successfully have the suites under proper management and was operating because you have to work King's out and of course the main are there making sure that all the holes are plugged and the fire alarm system works and you can just work it out.

00:25:07.936 --> 00:25:11.146
Then we turned our attention to the new project.

00:25:11.467 --> 00:25:17.711
So one of the big differences that you mentioned in the phone conversation for saltwater resort is you're now going to have a pool.

00:25:18.372 --> 00:25:21.967
Yes, a 20 by 40 pool, saltwater pool and saltwater pool.

00:25:21.987 --> 00:25:22.788
That's awesome.

00:25:22.788 --> 00:25:23.329
I love it.

00:25:23.550 --> 00:25:25.255
You have a clubhouse A clubhouse.

00:25:25.255 --> 00:25:25.876
That's right.

00:25:25.876 --> 00:25:27.769
It's going to be a three story clubhouse.

00:25:28.111 --> 00:25:29.875
What are you going to do with three stories?

00:25:30.265 --> 00:25:35.307
We're going to rent that out for events, but we're also going to make that part of the experience of the resort.

00:25:35.307 --> 00:25:39.596
So when you stay at the resort, you have access to the clubhouse and the pool.

00:25:40.105 --> 00:25:40.365
Okay.

00:25:40.867 --> 00:25:51.884
And downstairs in the clubhouse there's going to be about 900 square feet, fully air conditioned, and we're going to partner with local businesses to come sell their goods and services.

00:25:52.667 --> 00:25:53.411
Oh, that's cool.

00:25:53.431 --> 00:25:55.137
Yeah, we're experimenting that now.

00:25:55.137 --> 00:26:02.498
We've partnered with scoops ice cream down in Topsle Beach, so they've been there a few times selling their homey goods, which is awesome.

00:26:02.498 --> 00:26:11.742
And yeah, there's several businesses that we're going to invite and say, hey, you know what, use it, and then, if the guests want to come, you can advertise on your own channels.

00:26:11.762 --> 00:26:13.208
We're not going to charge you anything for it.

00:26:14.089 --> 00:26:17.967
Again, we're trying to be an advocate for small businesses supporting businesses.

00:26:17.967 --> 00:26:26.891
Right, and then where we, from a business model point of view, we'll probably we'll rent that out for events Again.

00:26:26.891 --> 00:26:32.608
Downstairs it's 900 square feet, but then you have two levels that are going to be open like a deck.

00:26:33.171 --> 00:26:33.510
Okay.

00:26:33.872 --> 00:26:44.738
And there'll be a makeshift bar on the second level and everything will be fully supported for bands and things we're thinking like, if somebody wants to make a band, put it on the second floor that'd be great.

00:26:44.738 --> 00:26:49.513
We're even on the third floor, and then they can have access to the pool and have birthday parties or corporate events.

00:26:49.615 --> 00:26:50.215
That'd be great.

00:26:50.215 --> 00:26:58.890
So let's talk about you for a minute.

00:26:58.890 --> 00:27:00.895
I want to hear a little bit about your personal history.

00:27:00.895 --> 00:27:02.470
I always ask this of my guests.

00:27:02.470 --> 00:27:05.601
I'm just curious, because no one really is from around here.

00:27:05.601 --> 00:27:07.592
So I always ask where were you born and raised?

00:27:08.315 --> 00:27:14.328
I'm originally from Gaston County, a little town called Cherryville, which is 45 minutes west of Charlotte.

00:27:14.328 --> 00:27:18.118
Okay, and growing up my grandparents had a beach house in Carolina Beach.

00:27:18.237 --> 00:27:21.230
Oh, that explains some things right there, yeah.

00:27:21.349 --> 00:27:30.757
So I spent most of all my summers playing little league baseball and coming down to Carolina Beach and eating breadstone, nuts and breadstone nuts yeah.

00:27:30.757 --> 00:27:33.906
Going to the carnivals and seeing all the interesting people.

00:27:34.188 --> 00:27:35.333
So that's in North Carolina.

00:27:35.333 --> 00:27:37.883
And then you said you moved to Virginia.

00:27:37.883 --> 00:27:39.208
What was the succession of your?

00:27:39.528 --> 00:27:39.971
travels.

00:27:39.971 --> 00:27:46.690
So I graduated from App State and took a job with a government contractor right outside of DC in.

00:27:46.690 --> 00:27:52.811
Fairfax, virginia, and a software engineer working for the intelligence community, so that's where I started my career.

00:27:53.053 --> 00:27:54.395
Can you tell us a little bit about that?

00:27:55.884 --> 00:28:09.309
A little bit Working in software and I switched companies a few times and ended up going to Oracle and really honing my experience around database development and the technology at that time and it was before 9-11.

00:28:09.309 --> 00:28:24.343
So they were investing a lot of effort into what they call clustering of technology, but basically what that is is that they were hosting systems in multiple environments so that if one goes down another one can still keep going.

00:28:24.443 --> 00:28:24.805
Makes sense.

00:28:24.924 --> 00:28:32.788
Yeah, disaster recovery is what they call it, and I had a chance to start my own company from that experience, and I did so.

00:28:32.788 --> 00:28:42.820
I started out as my own 1099 person, working on multiple contracts, and that eventually led me to Topsoil and had some capital.

00:28:42.820 --> 00:28:44.628
I'm like you know what I want to have a place at the beach.

00:28:44.628 --> 00:28:46.877
I went to Virginia Beach and I didn't like it.

00:28:46.877 --> 00:28:49.829
Ocean City is not my vibe either, and I wasn't going north.

00:28:50.271 --> 00:28:54.006
So, like why don't we go south and let's just not be around a bush?

00:28:54.006 --> 00:28:56.472
And then, from a price point of view, we looked at outer banks.

00:28:56.472 --> 00:28:58.096
We went to Carolina.

00:28:58.096 --> 00:29:03.336
They didn't like the vibe there and Topsoil really checked all our boxes.

00:29:03.336 --> 00:29:04.298
It was low key.

00:29:04.298 --> 00:29:06.327
They call it Mayberry at the beach.

00:29:06.327 --> 00:29:16.040
It's very down home and I love it Absolutely, love the people, great restaurants and it's only six hours from where I live in Virginia.

00:29:16.040 --> 00:29:17.286
So it wasn't too terribly far.

00:29:18.126 --> 00:29:25.388
How did you end up getting from the software business to the hospitality business once you got here vacationing?

00:29:25.569 --> 00:29:26.472
and buying that house.

00:29:26.472 --> 00:29:29.020
That's a loaded question.

00:29:29.020 --> 00:29:31.327
I've built and sold two software companies.

00:29:31.669 --> 00:29:31.888
Right.

00:29:32.230 --> 00:29:39.828
So after I sold the first one, I had to spend two years not doing software like a non-compete agreement.

00:29:39.828 --> 00:29:42.355
So I became a venture capitalist.

00:29:42.355 --> 00:29:58.748
So I joined a local VC group where I was learning how to read not only business plans but also financials and really understanding business and what makes it work and how operations could be more efficient and successful from an investor point of view.

00:29:58.748 --> 00:30:00.755
So there's an operator side.

00:30:00.755 --> 00:30:06.017
So me being an operator, I have what makes operations tick and what you need to do to be a profitable business.

00:30:06.017 --> 00:30:08.548
But from an investor point of view it's a little different.

00:30:08.548 --> 00:30:17.167
On the other side of the table, I mean, you're both on the same team, except there's different vantage points you have and it was interesting experience learning it from both sides.

00:30:17.429 --> 00:30:28.144
So, spending two years there, I launched another software company with a friend of mine and that went really well, but at the same time I kept my venture business going.

00:30:28.144 --> 00:30:45.509
So I was running those parallel and I quickly got burned out because I started to experience frustration in how some of these other companies that we were investing in were managing their money and making poor decisions.

00:30:45.509 --> 00:30:58.847
So I decided to stop putting more money to work in that area and just focus on the ones that I had invested in, but I still had the desire to do something more, and that led me into real estate.

00:30:58.847 --> 00:31:01.614
So I started to really investigate real estate.

00:31:01.614 --> 00:31:12.148
Watching HGTV, obviously, but really listening to podcasts like Bigger Pockets got me really interested in learning, multifamily and things of that nature.

00:31:12.148 --> 00:31:18.332
So in 2017, I saw the Motel for sale at Loggerhead and I thought how interesting.

00:31:18.332 --> 00:31:21.905
How often do you get to actually see the financials of another business?

00:31:22.307 --> 00:31:22.428
And.

00:31:22.909 --> 00:31:29.313
I'm like, all right, I want to check this out, just to check out their op-acts or margins and how things operate Interesting.

00:31:29.313 --> 00:31:31.689
So I just pulled in and said are you for sale?

00:31:31.689 --> 00:31:32.653
Yes sir, we are.

00:31:32.653 --> 00:31:33.417
Here's the broker.

00:31:33.417 --> 00:31:40.042
And I called him and said, hey, give me three years of P&L, balance sheet, tax returns, full list of processes.

00:31:40.304 --> 00:31:44.076
And you're like what, and initially it was just I want to see what this looks like.

00:31:44.076 --> 00:31:46.946
It must have looked really good.

00:31:47.228 --> 00:31:48.432
Yeah, it was interesting.

00:31:48.432 --> 00:31:54.814
The margins at the time were like 60% and I couldn't believe it and I'm like how are you operating a 60% margin?

00:31:54.814 --> 00:32:00.548
Operating cost, you mean no the profit they were making 60% profit.

00:32:00.669 --> 00:32:01.170
Oh, wow.

00:32:01.411 --> 00:32:07.030
So I didn't understand, like how they were doing this, because I'm from a world 20, 25%.

00:32:07.030 --> 00:32:08.815
You're freaking great.

00:32:08.955 --> 00:32:09.757
That's surprising.

00:32:09.837 --> 00:32:10.986
Yeah, yeah.

00:32:10.986 --> 00:32:18.166
So I started to really understand the taxes and the labor and the cost of goods, things of that nature.

00:32:18.166 --> 00:32:25.307
And again, ligerhead at the time was operating at a different level than what it could have been.

00:32:25.307 --> 00:32:31.412
So of course, if you're shooting for higher categories, it's going to cost a little bit more money.

00:32:31.412 --> 00:32:43.407
So that provided me at least the insight into hey, I could operate this business and then over time put that money back into the product and improve it, thereby increasing the rates.

00:32:43.407 --> 00:32:50.473
And if you can keep your cost minimum to slight increase but increase your top line, then your margins would expand.

00:32:50.473 --> 00:32:59.660
But I had a small setback after buying the property and I ended up subbing it out to a local property manager After explaining exactly what I saw.

00:32:59.660 --> 00:33:01.743
Like the margins are killer.

00:33:01.743 --> 00:33:03.628
I think we put a little bit of money into this.

00:33:03.628 --> 00:33:08.344
I'll charge you a nominal rate to lease the property, but there's a lot of upside here.

00:33:08.344 --> 00:33:10.409
And he finally said you know what You're right.

00:33:11.675 --> 00:33:13.119
I'm just I'm curious.

00:33:13.119 --> 00:33:19.759
I've never, I've never heard anyone mention a 60% profit before, unless I'm thinking about this wrong, and I just don't know enough about it.

00:33:19.759 --> 00:33:23.914
Why would anyone sell something that's getting that type of profit?

00:33:23.914 --> 00:33:25.861
Why were they letting go of it in the first place?

00:33:25.861 --> 00:33:32.039
That kind of product needs Improvements oh, they were missing the maintenance part of it.

00:33:32.039 --> 00:33:43.619
Well, the deferred maintenance probably wasn't at the level it needed to be, and over with that margin wouldn't have been the same had they been Reinvesting back in the property right.

00:33:43.920 --> 00:33:46.665
Yeah, now that we basically dismantled the property.

00:33:46.665 --> 00:33:53.346
Oh my gosh, you would not believe it looks very similar, but that thing is brand new as of 2020.

00:33:53.346 --> 00:33:55.622
But, yeah, we started to peel the onion back.

00:33:55.622 --> 00:33:56.724
We took this off.

00:33:56.724 --> 00:33:58.942
Oh my god, we just go another level.

00:33:58.942 --> 00:34:00.289
We took the boards off.

00:34:00.431 --> 00:34:03.788
Oh dear lord, this is that where the setback came in when you started?

00:34:04.210 --> 00:34:04.692
things back.

00:34:04.751 --> 00:34:07.390
Yeah, okay, so a bigger project than you anticipated.

00:34:07.390 --> 00:34:08.114
Yeah, okay.

00:34:08.275 --> 00:34:18.795
Yeah, well, it's funny because the team that I've hired originally to do the renovation, we put a budget down for that and then we blew that budget, probably within the first three months.

00:34:18.795 --> 00:34:20.650
Oh, no and I started to cry.

00:34:20.708 --> 00:34:22.880
I'm like, oh my god, this is gonna be a nightmare.

00:34:22.938 --> 00:34:23.715
What have I done?

00:34:23.735 --> 00:34:25.201
Yeah, like how far does the whole go?

00:34:25.201 --> 00:34:31.094
Yeah, you, just, you keep digging and Eventually it's like you're gonna hit the bottom and it's like well, here's the bottom.

00:34:31.396 --> 00:34:36.114
Okay, so you pulled yourself out of that hole and you sold the property.

00:34:36.114 --> 00:34:43.255
Yeah, tell me about some of the, the challenges or the hurdles that you ran into being on an island.

00:34:43.255 --> 00:34:45.963
Is there anything specific to that that was troublesome?

00:34:47.335 --> 00:34:49.764
Financing is a big one, banks.

00:34:49.764 --> 00:35:11.342
They back in 2020, during the COVID pandemic, they bundled hospitality in the same genre as restaurants and Obviously, they look for consistency, consistent cashflow to make sure that you can pay your mortgage and your bills and not have to go through the foreclosure process, but after having to explain to them hey, this is a head and shoulders model.

00:35:11.342 --> 00:35:13.949
Most of your money is made during the season.

00:35:13.949 --> 00:35:16.199
There's a surge, it's booming.

00:35:16.199 --> 00:35:19.248
Pinder County is one of the fastest growing counties in North Carolina.

00:35:19.248 --> 00:35:21.657
They just didn't get it.

00:35:21.657 --> 00:35:23.081
It's just like they're deaf.

00:35:23.081 --> 00:35:24.445
Oh, you're still a hotel.

00:35:24.445 --> 00:35:25.847
No, I can't talk to you.

00:35:25.847 --> 00:35:30.820
So I had to sell, finance A lot of this construction, pretty much all of it.

00:35:31.422 --> 00:35:33.286
I'm mortgage my house in Virginia.

00:35:33.286 --> 00:35:34.869
I'm mortgage my beach house down here.

00:35:34.869 --> 00:35:44.148
When you feel passionate about something and you see a vision, this the entrepreneur curse the next deal has to be better than the last one that you just had.

00:35:44.148 --> 00:35:49.315
You, you get behind this idea and you see it, even though you're talking to people, and I think you're freaking crazy.

00:35:49.315 --> 00:35:52.043
Why are you building this in a hurricane alley like?

00:35:52.063 --> 00:35:52.465
right.

00:35:53.126 --> 00:35:58.380
It's beautiful, it's needed, it's a great team, economics work and why not?

00:35:58.701 --> 00:36:00.844
people are pouring in here yeah.

00:36:01.065 --> 00:36:02.047
Yeah, just last night.

00:36:02.047 --> 00:36:04.056
The firework crowd is Crazy.

00:36:08.338 --> 00:36:10.434
You mentioned storming, norming and performing.

00:36:10.434 --> 00:36:13.815
I Loved that, so I just want to put a little note in here about that.

00:36:14.175 --> 00:36:16.563
That's an old business school analogy.

00:36:16.563 --> 00:36:24.282
When you're building a team and trying to implement a vision or mission, you go through the storming, norming and performing.

00:36:24.282 --> 00:36:35.735
And storming is you're working together, just like it says You've got a lot of chaos, you got a lot of opportunity, and you're trying to build your processes and get everybody on the same sheet of music as far as how to operate.

00:36:35.735 --> 00:36:47.014
And then norming is when you take those procedures and start developing a process of execution, and then, of course, performing is just running the script that you've built.

00:36:47.054 --> 00:37:07.905
Okay, and of course, that's an iterative process because over time things are dynamic and Evolution happens, whether it's in life or business, and you have to adapt to Degree of outcome and you have to understand that you have to constantly be looking at reviewing those things to make sure that the customer's experience is exactly what they signed up for.

00:37:07.905 --> 00:37:13.505
So we take our feedback very seriously as far as making sure that folks are happy.

00:37:13.505 --> 00:37:23.679
If they're not happy, we want to know why they're not happy and and that way they can come back and tell their friends because that is the best source of Advertisement is word of mouth.

00:37:24.000 --> 00:37:24.541
I love that.

00:37:24.541 --> 00:37:33.302
I've seen a few examples where people get offended and take it personal when someone gives some poor feedback or some bad feedback rather.

00:37:33.943 --> 00:37:39.141
Yeah, I try to try to remove emotions from issues.

00:37:39.141 --> 00:37:46.068
Because they were all passionate human beings and your emotions dictate your behavior and the choices that you make.

00:37:46.068 --> 00:37:52.518
And Sometimes you just have to look at an issue and remove emotion and think like a robot and say, alright, how do I handle this emotion?

00:37:52.518 --> 00:37:54.681
Obviously they're upset, happy, sad, whatever.

00:37:54.681 --> 00:38:00.463
But then if you remove the emotion, then it can help Calibrate the response that you give to solve the issue.

00:38:01.385 --> 00:38:02.407
I wanted to ask you.

00:38:02.407 --> 00:38:13.275
You've obviously got a really great business sense about you and we have so many new small businesses in the area, and I just wanted to find out if there were any Tips or guidance that you could provide.

00:38:13.275 --> 00:38:21.141
We got a lot of young folks out here that are doing a lot of startups, a lot of the boutiques are young ladies who are taking a big step.

00:38:21.663 --> 00:38:21.822
Mm-hmm.

00:38:22.184 --> 00:38:23.407
What advice can you offer them?

00:38:24.795 --> 00:38:25.820
It's an interesting question.

00:38:25.820 --> 00:38:31.889
I've guest lectured at schools and a lot of kids have the same question.

00:38:31.889 --> 00:38:34.597
A lot of people and I even talked to my own kids About some of the stuff.

00:38:34.597 --> 00:38:40.474
But I think they're too young to even try to comprehend some of these recommendations or or concepts.

00:38:40.474 --> 00:38:47.679
But I think it it starts with just having Confidence in what you're doing.

00:38:47.679 --> 00:38:50.405
You don't have to be an expert in an industry here.

00:38:50.405 --> 00:38:57.967
I'm a software guy, I'm not a developer, I'm not a hospitality owner or, I guess, owner, but like an operator.

00:38:57.967 --> 00:39:18.483
But if you surround yourself with Professionals and you learn and you go to meet up groups and you Invest your time in books and podcasts and really understand All you needs a little bit of information, just a little bit of a spark, and then that creates you some momentum that you can carry forward Into building out what you think you want to do.

00:39:18.483 --> 00:39:25.751
So that I think a lot of people get hung up on that oh, I don't believe I have the skills or I don't have the expertise.

00:39:25.751 --> 00:39:26.614
I don't believe in that.

00:39:26.775 --> 00:39:46.563
I think with the available resources out today, anybody can pick up a pen and paper or just listening to a podcast or a book and Develop the necessary knowledge, at least to know where to go to the next step, whether it's to invest into Learning from another person or whatever.

00:39:46.563 --> 00:39:47.826
That that's number one.

00:39:47.826 --> 00:39:49.375
Number two is time.

00:39:49.375 --> 00:39:50.277
I think it.

00:39:50.277 --> 00:40:00.228
You know you have to devote a lot of time and energy to something and with all the distractions of today Attention deficit or whatever there's just there's too many things going on.

00:40:00.228 --> 00:40:07.128
And I tell people all the time you have to ignore the noise, to focus on what you want to achieve in your outcome.

00:40:07.128 --> 00:40:12.838
There's gonna be people talking all the time you turn on the news and that's all you hear, just blocking out.

00:40:13.057 --> 00:40:19.824
If your goal is to open up a hotel or to start a company, whatever it is, then that's what you think about 24-7.

00:40:19.824 --> 00:40:20.626
You take notes.

00:40:20.626 --> 00:40:22.795
What I need to do, what's my next steps?

00:40:22.795 --> 00:40:23.976
What's the model?

00:40:23.976 --> 00:40:31.460
Go learn, go to a competitor and figure out what they don't do and try to do what they don't do better, to lever that experience.

00:40:31.460 --> 00:40:38.813
It's almost like You're not trying to copy somebody, you're just trying to learn and observe and figure a better way of doing it.

00:40:38.813 --> 00:40:42.262
Because that that, to me, is like the American spirit competitions, great.

00:40:42.262 --> 00:40:51.635
We need competition, and competition Sturs innovation, and that's where people become innovative and become risk takers to do what they need to do.

00:40:51.635 --> 00:41:13.300
So I think a lot of its confidence, a lot of its time and energy and spending in the area and and just Having fortitude to chase your dream, a lot of people, like I said, it's like just getting out of the gate is 90% of the challenge truly, I have to say, I love talking about your businesses and all that, but that was really my favorite part of this whole conversation.

00:41:13.460 --> 00:41:15.784
Thank you for sharing that with me and I.

00:41:15.784 --> 00:41:17.789
I know the listeners are gonna love that.

00:41:17.789 --> 00:41:22.163
So, beyond saltwater resort, mm-hmm, what are your future plans?

00:41:23.195 --> 00:41:25.019
Maintained saltwater for now.

00:41:25.019 --> 00:41:27.327
We'll see what happens with that in the future.

00:41:27.327 --> 00:41:31.585
But I still have desire for software and innovation.

00:41:31.585 --> 00:41:50.405
I've already got a lot of investments in artificial intelligence space, in software that's like my three areas of focus and in the hospitality side, but started a new venture fund and we made a first investment in a company out of Wilmington, mm-hmm, and it's a hundred percent software.

00:41:50.405 --> 00:41:52.934
So it scratches an itch that that I had with that.

00:41:52.934 --> 00:42:15.556
So now what I'm here I get I mean heaven, because I get to live out my dream as maintaining and running saltwater, meeting the guests, making sure all their experiences are happy, and then have the software side and help them develop or pass on all the experience I had running my two businesses and building software and see if I can't get them to the next level.

00:42:15.777 --> 00:42:16.860
So that's wonderful.

00:42:16.860 --> 00:42:17.922
I'm happy for you.

00:42:17.922 --> 00:42:20.340
I'm glad you're pulling it in from all the sides.

00:42:20.340 --> 00:42:20.782
I love it.

00:42:20.782 --> 00:42:22.170
And to tell me about your family.

00:42:23.432 --> 00:42:25.418
I have three kids, son's 21.

00:42:25.418 --> 00:42:29.248
He goes to Purdue and he just joined the Air Force.

00:42:29.248 --> 00:42:35.422
He's an Air Force ROTC, so he's actually doing his field training and a hundred degree temperature in Alabama.

00:42:36.351 --> 00:42:37.356
Has he reached out to you?

00:42:37.356 --> 00:42:37.918
How's he doing?

00:42:37.958 --> 00:42:39.304
No, they shut their phones off.

00:42:39.344 --> 00:42:39.606
Yeah.

00:42:39.746 --> 00:42:41.211
Yeah, so I think he he's.

00:42:41.211 --> 00:42:43.034
He's out next week, I believe.

00:42:43.034 --> 00:42:45.018
Yeah, around the 16th.

00:42:45.018 --> 00:42:47.184
Yeah, he still has another week or so.

00:42:47.891 --> 00:42:48.695
Hang in there, buddy.

00:42:49.318 --> 00:42:50.481
Yeah, I'm gonna.

00:42:50.481 --> 00:42:55.878
He's doing an internship in LA, so I'm gonna fly out there and see him in a couple of weeks and then my daughter goes to school.

00:42:55.878 --> 00:42:59.713
She plays volleyball at WPI, which is in Worcester, outside of Boston.

00:42:59.914 --> 00:43:00.255
Okay.

00:43:00.735 --> 00:43:02.641
And she's thinking of joining.

00:43:02.641 --> 00:43:09.891
She is part of Army ROTC, but she's been offered a scholarship as well and she's trying to decide whether to join the Army.

00:43:09.891 --> 00:43:12.422
So I'm like who knew I had two kids?

00:43:12.422 --> 00:43:12.521
That?

00:43:12.541 --> 00:43:13.284
would be in military.

00:43:13.565 --> 00:43:15.353
And my youngest daughter she's 14.

00:43:15.353 --> 00:43:16.797
She plays travel volleyball too.

00:43:16.797 --> 00:43:18.041
Definitely keeps us busy.

00:43:18.684 --> 00:43:19.065
I bet.

00:43:19.065 --> 00:43:22.715
Yeah, it's been so nice talking to you and getting to know you.

00:43:22.715 --> 00:43:28.177
I'm excited about having you here in our area and creating all these opportunities.

00:43:28.177 --> 00:43:32.175
So, thank you, I appreciate your time and I appreciate the information that you gave us Well.

00:43:32.195 --> 00:43:32.898
thank you for having me.

00:43:33.059 --> 00:43:33.784
Yeah, it's my pleasure.

00:43:33.784 --> 00:43:56.114
I'm just going to give out the contact and location information so you can find and follow Saltwater Suites on Topsoil on Facebook at Saltwater Suites on Topsoil, and then on Instagram, the handle is Saltwater Topsoil and you can also find them on Twitter and TikTok and the address is 605 North Topsoil Drive and surf city, 28445.

00:43:56.114 --> 00:44:04.588
The website is saltwatertopsoilcom, the phone number is 910-886-4818.

00:44:04.588 --> 00:44:09.123
And your property is managed by Blue Star Real Estate in Wilmington, correct.

00:44:09.163 --> 00:44:09.503
Correct.

00:44:09.965 --> 00:44:15.442
And you can email them at saltwateratbluestarrealestatenccom.

00:44:15.442 --> 00:44:23.000
So I just want to say thank you to my listeners for joining me today, and thank you again, richard for sitting and talking with me.

00:44:23.101 --> 00:44:24.362
Absolutely Thank you.

00:44:25.731 --> 00:44:28.559
Hey, thank you for joining me today on Topsoil Insider.

00:44:28.559 --> 00:44:39.380
If you liked today's episode, please hit the follow or subscribe button so that you can get the Topsoil Insider podcast delivered automatically to whichever podcast platform you're listening on.

00:44:39.380 --> 00:44:48.101
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00:44:48.101 --> 00:44:52.161
Please also find and like the Topsoil Insider Facebook page.

00:44:52.161 --> 00:45:01.092
I provide links to the new podcasts there each week, as well as providing photos of the businesses that I'm highlighting, along with any of their upcoming events.

00:45:01.092 --> 00:45:03.036
So, hey, let's do this again next week.

00:45:03.036 --> 00:45:04.498
I'll see you around Topsoil.