The inverted bond yield curve, inflation ticking up significantly, interest rates rising, supply chain issues, and some challenges with the existing amount of debt are warning signs in our current economic environment that we need to pay attention to. Yet, our guest, Hunter Thompson, believes that we are in an incredible and could be a once-a-generation type of buying opportunity despite all these.
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Hunter is a full-time real estate investor and founder of ASYM Capital. Since founding ASYM, Hunter has helped more than 400 retail investors acquire over 150 million dollars worth of mobile home parks, self-storage, retail offices, ATMs, and Cryptocurrency assets. Hunter is also the host of the Cash Flow Connections Real Estate podcast, which has received over one million downloads.
Listen now to understand better the four economic indicators mentioned above and other data points that will guide you to properly invest in real estate today.
Key Points From This Episode:
- In a normal, healthy economy, bond yields slope up to the right, which means that the longer you hold your investment, the higher the returns will be.
- In our current economic situation, bond yields are inverted – the two-year return profile is higher than the 10-year.
- Inverted bond yields is a trigger or an indicator that a recession will happen typically 18-22 months after the inversion took place.
- Hunter connects the rising interest rates to inflation and explains its effect on real estate investing.
- What happens when liquidity is created?
- Hunter discusses the difference between two types of inflation – equity prices and consumer prices.
- Hunter gives two reasons why inflation is a tailwind to real estate owners.
- He talks about what inflation does to debt.
- How do these economic indicators change how Hunter looks at deals right now?
- Hunter talks about their 100k to Invest Summit.
- What is, currently, his best source for new investors?
- What are the most important metrics that he tracks, and how does he track them?
- How does Hunter like to give back?
“If you’re thinking that interest rates are gonna go to eight, and you’ve been thinking that since 2010, like a lot of people have, it’s not that you’ve been conservative, you’ve been investing wildly inappropriately, and that’s the message that I wanna get to the audience. While there is uncertainty in the marketplace in today’s inflationary environment sitting on the sidelines is something, not an option, it is not a conservative approach, it is burning money in your purchasing power.” [00:14:20]
“I have always had a very similar approach where I’m looking for favorable risk-adjusted, particularly recession-resistant investments, and that usually includes mobile home parks, self-storage, and multifamily apartments, and the ratio of what I focus on changes as the market dynamics change.” [00:14:55]
“The percentages will surely change as the market dynamic changes.” [00:16:08]
“A lot of you are sitting here and you’re doing what the largest private equity companies in the world are doing with all-time high cash reserves, publicly traded companies, the BlackRocks, they all have the largest cash reserves that they’ve ever had, and they’re all sitting there waiting for this massive buying opportunity, and I’m here to say that it’s happening now that crazy, back-the-truck-up moment might, in fact, be happening now.” [00:16:52]
Links Mentioned in Today’s Episode:
About Hunter Thompson
Having a background in economics has allowed Hunter Thompson to achieve a holistic approach to analyzing real estate data and has led him to a unique perspective on out-of-state investing. His business aims to help clients invest in passive cash flow opportunities that provide a healthy return on investment without the headaches associated with the stock market’s volatility. He has analyzed and closed residential real estate acquisitions, hard money loans, bridge financing opportunities, commercial and residential syndications, mobile home parks, retail opportunities, and syndicated office space investments. He has worked with multiple asset teams across several geographic locations in the US and Canada. His main priority is establishing an extremely diverse portfolio without exposing the client’s capital to unnecessary risk.
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