20 Dollar Rollercoaster Inn – Wang Junyu’s Leveraged Investment Philosophy

With only $20 left in his pocket, how does one survive? Wang Junyu, who came to the United States in 1972 to pursue his studies, encountered an economic downturn after graduation. Working in a restaurant in Los Angeles by chance led him to the hotel industry. With courage, foresight, and relentless effort, he became a successful role model among Taiwanese-American businessmen in Southern California.

Born in 1947, Wang Junyu studied mechanical engineering at Tatung Institute of Technology in Taiwan. In 1972, he arrived in the U.S. and pursued a master’s degree at the University of Detroit. However, Detroit was experiencing an economic recession at the time. After working for only six months post-graduation, he was forced to leave due to the downturn in the market.

“At that time, there were not many options. With only $20 in my pocket, it was impossible to make a living,” Wang Junyu recalled. With no other choice, he moved to California to see if he could find new opportunities.

Upon arriving in Los Angeles, he initially worked as a waiter in a restaurant, working from early morning to late at night. His salary barely covered the basics of living. However, through this job, he met some friends in the hotel industry, opening up a new career path. Starting as a broker, Wang Junyu began helping with hotel transactions.

In the 1970s, the hotel industry was a popular choice for many Taiwanese immigrants to start a business. It did not require a high level of technical knowledge, provided a means for families to sustain themselves, and profits could be made through diligent management. Wang Junyu befriended many Taiwanese Americans and learned from his clients how to “leverage the least amount of capital for maximum profit.”

Recalling a deal where a client negotiated to purchase a hotel for $300,000 with a $100,000 down payment, using the hotel as collateral to secure a $200,000 loan, Wang Junyu explained, “However, the client did not have $100,000. He found a partner to invest half, and he took responsibility for $50,000.”

The problem was the client could not come up with even the $50,000. What to do? The client borrowed $10,000 from someone, requested Wang Junyu to postpone collecting a $15,000 commission, then rented out the hotel, receiving a $25,000 deposit. Essentially, the client invested in a hotel with zero upfront cost. A year later, the client sold the hotel, making a net profit of $200,000.

This deal not only earned Wang Junyu a commission but also revealed the power of “leverage.” Subsequently, through networking and diligently exploring the market, he quickly made a name for himself in the hotel investment circle in Southern California. Accumulating capital, Wang Junyu began acquiring, renovating, and flipping hotels, further expanding his business empire.

Wang Junyu focuses on hotel investment, management, and brand transformation. His strategy involves acquiring poorly managed hotels, upgrading them to increase their value. “Many hotels owned by Taiwanese Americans in the early stages were properties that others could not manage. We acquired them, implemented new management practices, renovated them, and attracted new customers,” he said. This vision allowed Wang Junyu to rapidly accumulate wealth.

The outbreak of the pandemic in 2020 brought unprecedented challenges to the hotel industry. However, for Wang Junyu, “crisis is an opportunity.” He believes that “those with courage make profits, while those without take only interest.” To build wealth, one must have a keen investment eye, which requires accumulated experience and grounded efforts.

Operating and managing hotels is not easy; familiarity with city regulations, maintaining good relationships with local communities and law enforcement, leading staff, and procurement are all aspects that require dedication.

Wang Junyu still engages in two hours of exercise daily, including jogging and swimming, maintaining a youthful mindset. In addition to his career, he actively promotes the development of the Taiwanese-American community. He has served as a Taiwan Affairs Commissioner in the Republic of China, Chairman of the Southern California Taiwanese Hotel Trade Association, Chairman of the North American Taiwanese Hotel Association, Chairman of the Los Angeles Taiwanese-American Chamber of Commerce, and Chairman of the North American Taiwanese Business Association.

He has also organized and initiated the inaugural Select Taiwan Summit, promoting economic and trade exchanges between Taiwan and the United States. Wang Junyu’s experience is not just a testament to personal struggle but also a microcosm of the entrepreneurial spirit of Taiwanese businessmen in America.