#49: Investing vs. Speculating, Raising $$ using the Fund Model, and How To Lose Money with Paul Moore

The guest on this week’s episode of the Multifamily Wealth Podcast, Paul Moore, is one of the more seasoned investors we’ve had on the show. His background in real estate is extensive - he has experience in multiple sectors of real estate including developing multifamily, developing hotels, self-storage, mobile home parks, and much more. A theme of this show is the idea of speculation vs. investing and how it has shaped his career… Paul shares an interesting deal he did in North Dakota that exemplified that concept. We also talk about risk, what to do when a market or sector gets too hot, and the thought process behind great investors. Regardless of where you’re at in your career, this will be a great one!

Paul co-hosts two podcasts, including The Art of Investing and How To Lose Money. He is also a contributor to Fox Business and BiggerPockets, producing live video and blog content on a weekly basis. Paul is the author of The Perfect Investment Create Enduring Wealth from the Historic Shift to Multifamily Housing and Storing Up Profits - Capitalize On America's Obsession with Stuff by Investing in Self-Storage. Paul is the Managing Director of three commercial real estate funds at Wellings Capital.

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SHOW NOTES:

4:05 Paul discusses his extensive background and how he initially got into the business.

6:30 Paul shares how his first deal went regarding starting out with development, the speed at which he was able to move, and the learning points along the way

10:18 Paul discusses the difference between speculation vs. investing and the important distinction between the two.

12:17 We discuss how Paul learned about the syndication business and how he ended up writing a book that teaches people how to get into multifamily syndication.

13:24 Paul shares some of his biggest takeaways from joining a real estate mentorship group. 

16:56 Paul talks about what that deal led to, and what his business looks like now, especially since he is investing in other assets outside of multifamily syndications.

21:54 We discuss Paul’s podcast named “How to Lose Money”, why he decided to start the podcast, and what he shares with his listeners.

24:54 We discuss value-add investing and how the strategy can be applied to self-storage and mobile home park deals.

29:55 Paul discusses the fund model and what makes it different from asset-specific syndication.

32:00 We discuss the syndication structure that Paul uses in his own deals to align his interests with his investors. 

34:15 We discuss the main differences between investing in property vs investing in a fund and how Paul structures his fund.

37:05 Paul shares one of his main failures in his journey that led him to many learning opportunities to become a better investor.

39:10 Paul goes over his short-term goals with his business and how change ma