216. The Changing World of Finance and Its Impact on Real Estate with Hunter Thompson

Apr 29, 2022

The world of finance has been changing rapidly over the last few years and one of the biggest changes has been in the way that investors are taking on risk. Long-term volatility in markets has become more common, meaning that returns for bonds and other fixed income investments are typically lower than they were in the past. And this has huge implications for people who are considering investing in these markets, particularly those who are looking to take on more time risk.

 

In today's episode, Hunter Thompson is going to share about how this phenomenon affects real estate, and specifically how foreclosures and low levels of mortgage lending are impacting the market. We'll also discuss some ways that investors can still benefit from these trends, even if they don't rely on debt financing or foreclosure investments.

 

So make sure to join us today as we explore all of these important trends!

 

[00:00 - 09:43] Opening Segment

• Let's welcome my guest for today's show, Hunter Thompson
• Hunter shares how he saw the opportunity in the stock market back in 2008
• The yield curve inversion as an indicator for recession
• The implications of the state of consumers to businesses

 

[09:44 - 20:09] The World of Finance

• The increased chatter about an all-in moment in the market
• Interest rates are rising 
• The possible consequences of quantitative easing
• A detailed explanation of how inflation affects real estate
• • As inflation rises, the value of real estate will increase significantly year-over-year

• Hunter discusses how America's debt-to-GDP ratio is lower than Japan's

 

[20:10 - 32:49]

• downside protection, conservative underwriting, recession resistant asset classes, and forging strong relationships with operating partners and investors
• The challenges the the senior living industry faces
• • Staffing shortages and wage growth
•  We talk about the housing crises that the US is facing
• Regulations as the main roadblock in building super dense housing
• How denser housing can solve subsidies in pricing

 

[32:50 - 35:37] Closing Segment

• We talk about Bitcoin and and the world of crypto
• The importance of setting goals and taking action
• Final words
• See links below to connect with Hunter

 

 

Quotes:

 

 "So again, the political realm, which to a large degree controls the central banks, they think they've unlocked this numerical drug, which is we don't have this crazy uprising that we would have had if we had not clicked the button and have 20% unemployment." - Hunter Thomspon

 

17. "Because nobody really anticipated Bitcoin to become what it was today. Very few people did. And the Bitcoin mining thing is interesting because it allows you to get exposure to the space of crypto without foregoing the things that you and I both love about real estate, in particular, cash flow and depreciation." - Hunter Thomspon

 

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Connect with hunter through Linkedin, or you can email him at [e-mail].

[e-mail]

 

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