FHR#016: Recession Resistant Investments with Hunter Thompson

DISCUSSED DURING SHOW:
Hunters Book: https://www.raisingcapitalforrealesta...
Hunters Podcast: https://cashflowconnections.com/
https://asymcapital.com/
https://asymcapital.com/podcast-post/...
https://asymcapital.com/podcast-post/...

FREEDOM HACK RADIO LINKS:
Freedom Hack Radio Website: https://www.freedomhackradio.com/
Freedom Hack Radio YouTube Channel: https://www.youtube.com/channel/UCSo5...
Freedom Hack Radio iTunes: https://podcasts.apple.com/us/podcast...
Also available on your favorite podcast platform

IN THIS EPISODE HUNTER & BRYCE COVER:
Bryce talks to Hunter Thompson
Hunter is the founder of Asym Capital which is a private equity firm based in LA
Hunter is a full time real estate investor
Hunter is an expert in building a recession resistant real estate business

EPISODE DETAILS:
Since founding Asym Capital Hunter has overseen and directed the purchase of over $90mil of commercial real estate
He is the author of the Bestselling book; Raising Capital for Real Estate: How to Attract Investors, Establish Credibility, and Fund Deals
He is also the host of the podcast Cashflow Connections
Today is he is grateful to be surrounded by so many people open to new ideas and intellectual conversation
He is driven by ultimate freedom lifestyle to travel and be financially free
Hunter woke up to world of finance in 2008 when he was still in college
He jumped into stock market and value investing
There was success for 2 years and then hit a roadblock in 2010 with the European debt crisis
Hunter realized that his portfolio will always be tied to risks that he can’t foresee.
It was at that moment that he decided to go into real estate markets that were recession resistant - e.g. mobile homes
NOI - net operating income
Gross income minus expenses gives you the NOI
Real estate is traded on a multiple of this income which is called the cap rate
NOI divided by market cap rate which gives you purchase price for a property
You need to diversify your investments to protect against cap rate compression in certain areas
Current recession - we’ve just come out of the longest period of recovery between recessions ever so we were due a recession at some point
Covid didn’t cause the recession but it was the pin that popped the bubble
Hunter sees more downturn to come and says we haven’t felt the pain yet
There are safe and not safe real estate investments
Class A properties are insulated from risk, the tenant base can work from home
Class C are at risk from tenant base and employment, construction and factory jobs - short term pain
Hunter is not anticipating the same death spiral we saw after the 2008 recession - should get back on track much quicker
The habit Hunter has to keep himself on track is working out and pushing limits with exercise