RG 164 – Changing Investors Expectations in Today’s Economy: Part 1 with Paul Moore
Nuts and bolts
Paul is the co-founder of Wellings Capital and was first on the podcast in show number 78. Paul was a late 1990’s finalist for the EY Michigan entrepreneur of the year 2 years running. He has started and sold many businesses and is now in real estate where he has flipped over 50 homes and 25 high end water-front lots. He has appeared on HGTV House Hunters, he has rehabbed and managed rental portfolio’s, built new homes, created a sub division and started 2 online real estate marketing firms. He has finished 3 developments including a hyatt hotel and multifamily project, he is also the author of The PErfect Investment in 2016 adn the cohost of the wealth building podcast called How to Lose Your Money. Paul made his first dollar at college when he got his hand on a mailing list of parents at the college, he printed mailing labels and sent them all a letter about bringing easter baskets to the kids. When Paul was flipping homes he learned that he wasn’t a good onsite manager so he used to hire other people to do this job and he became the investor relations and marketing person. He read The One Thing by Gary Keller and decided to narrow down his focus to just one function within 1 asset class; managing money and finding great operators to partner with.
- Multifamily commercial real estate is so hot right now for several reasons;
- International investors: These investors want to get their money out of their currency and into the relative safety of the US Dollar so they’re willing to accept a 0% CAP rate just to get their money out and locals can’t compete with this.
- Institutional investors: These investors used to stay in coastal cities whereas now they’re chasing yield and so they’re moving inland and looking for smaller investments, from 500 units to 100 and going after less stable and older assets in a lower class.
- IRA money: Self directed 401K money is flooding the market because managers of these funds are happy to take more risks.
- 1031 money
- Tax reforms from Trump
- NURU: These are the new guru’s who are encouraging people to overspend and telling them that any future recession won’t be like the last one.
There has also been a downturn in the CAP rate because international investors are taking part in medium deals in the US which has grown the popularity of commercial real estate investing.
Top tips
- Most important habit – first hour of each day meditating
- Most influential person – father
- Most important tool – 411 time management from The One Thing book
- wellingscapital.com