What comes to your mind when you hear inflation? Believe it or not, this doesn’t have to be a dirty word, and if you play your cards right, you may be able to leverage it to your benefit through real estate! As you may remember, Paul Moore is the manager of multiple commercial real estate funds at Wellings Capital. Paul's team works to provide an on-ramp for investors who want the wealth-building power of commercial real estate and its tax benefits ... without the hassle and barriers to entry. He was a finalist for Michigan Entrepreneur of the Year two years straight before entering the real estate investment world over two decades ago. He is also the author of three real estate investment books and the founder of Wellings Capital. His firm manages recession-resistant commercial real estate funds that provide an easy on-ramp for accredited investors looking for diversification, cash flow, and exceptional appreciation.
Let’s dive back into Paul’s expertise and learn more about inflation and how to get on the winning side of it all without hurting other people.
An Intro to the Effects of Inflation - [00:01 – 04:09]
I welcome Paul Moore
Quick recap of his bio
Paul lays out the ‘problem’ of inflation
A look at the 70’s situation
Inflation doesn’t have to pull you back
How to Benefit from Inflation - [04:10 – 20:24]
Three things that drive inflation
A higher demand for something
Cost basis as a driver
Inflation’s effect on asset prices vs. retail prices
Who gets hurt by inflation
The people that were proposed help
The example of the stimulus
The poor’s wages can’t keep up with rising prices
Profiting can actually do people good
How to benefit without hurting people
A look at fixed rate debt
Real estate as a hedge against inflation
An example through Mobile Home investment
Paul’s thoughts on syndicators needing to put off 3 to 5 year holds
Get the longest term possible
Covering the sins of overpaying
Low interest rates, high inflation
Final Questions - [20:25 - 25:16]
As a takeaway look for:
Fixed rate, long term debt
Look for loan to cost loans that don’t need refinancing in 2 or 3 years
Paul’s final thoughts on inflation
Invest with people who know how to do the deals
Think long term
How to reach Paul
“You and I can benefit from inflation if we play our cards right!” - Paul Moore
“If inflation takes off right now… it might correct - it might cover over a lot of sins of people overpaying for multifamily… I think inflation can correct that in the next 3 or 4 years.” - Paul Moore
“If you can stay on top of this issue, you can be among the people that the wealth is transferred TO, not AWAY from.” - Paul Moore
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Real Estate Runway Podcast is all about alternative business and investment strategies to help you amplify life, and maximize wealth!
Click here to find out more about the host, Chad Sutton.