Ep. 154: Why Multifamily is the Perfect Investment with Paul Moore

What is the perfect investment? According to Paul Moore, the answer is multifamily apartments, or more broadly commercial real estate. The reason Paul loves multifamily is the ability to invest in income-producing assets with leverage and unbeatable tax advantages. Paul is the principal of Wellings Capital and host of the “How to Lose Money” podcast.  As a regular contributor for BiggerPockets, Paul is well-regarded for his multifamily and self-storage knowledge. In today’s episode, we dig in on value-add strategies for multifamily and self-storage, overcoming setbacks and tips to invest in a hot market.     Partner: Join me at the Best Ever Conference plus 15% discount with 15DEAL    Key Insights Author of “The Perfect Investment” and host the “How to Lose Money” podcast Went from $1.5MM in the bank to $2.5 MM in debt 10 years later If you lose money, dive right back in. You’ve already paid the tuition, so you may as well get the value of the class When determining whether to quit or keep going, first decide if you are on the right path Residential real estate is based on comps, commercial properties are based on math - Net Operating Income / Cap Rate = Value Jeff Bezos took out all the lights at the top of the vending machines at Amazon facilities to save money and boost value If you save just $1 in one unit per month, at a 6% cap rate, it can create $200 of value Mobile home value add idea: create parking/storage for cars and RVs Bonus depreciation allows you to save even more money on taxes Cost segregation allows you to separate all components of a commercial property and accelerate the 15 year QREP = Qualified Real Estate Professional Baby boomers are the fastest growing group of renters, also the smallest group International investors are looking to exchange currency, IRA investors, institutional investors from the coasts Moved to self-storage as many international investors  Red flags: Nurus (new gurus) teaching people that it’s okay to be highly leveraged at 90% LTV (loan to value) Self-storage is overheated, just like multifamily, but mom and pop owners leave meat on the bones Freddie Mac had 0.4% foreclosure rate during the recession Opportunities for Self-Storage Value-Adds: truck rentals, late fees, admin fees, website/marketing, add retail items (locks, boxes, tape, etc)   Partner: Download a Free Sample Apartment Deal Package     Bull’s Eye Tips:    Resources: The Perfect Investment by Paul Moore   Apparent Failure: Wireless internet and oil wells taught him to stay in his lane and focus   Most Recommended Book: The One Thing by Gary Keller and Jay Papasan   Most Recommended Digital/Mobile Resource: Hubspot  Daily Habit: Morning meditations and journaling   Wish I Knew Starting Out: The power of commercial real estate to generate income and create wealth   Wish I Knew 12 Months Ago: The power of storytelling   Advice for Smart, Driven College Students: Go find a mentor   Current Curiosity: The next decade   Best Place to Grab a Bite in Lynchburg: Mission BBQ   Connect with Paul: Website: wellingscapital.com    Leave us a review and rating on Apple Podcasts or Spotify. Be sure to check out more info at TargetMarketInsights.com.