This episode of the Real Estate Runway Podcast features Kim Wendland, a partner and managing partner of Quattro Capital’s asset management division. Join us as we delve into the world of real estate investments and dive deep into the topics of inflation, monetary policy, cash flow, and more. We'll share the importance of focusing on income, expenses, and performance of assets overvaluations in this period of hyper-velocity change. Furthermore, we will examine how macroeconomic factors such as rent to income ratio, population growth, and income growth can help you make wise investments. Additionally, you'll learn about the banking system and lending system at play during times of crisis. And finally, you'll get advice on how to optimize cash flow for faster returns through automation. So tune in for an engaging conversation with Kim Winland to gain valuable insights when it comes to investing in commercial real estate!

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[00:00 - 06:21] How Lever Movements Impact Your Assets

• Cash is king right now, not just in buying things but in operating.

• We are in a long covid cycle, and inflation has ramped up quickly.

• Fed has two levers to control the economy: interest rates and money supply.

• Repercussions of lever movements from 2020.

[06:21 - 13:47] Maximizing Assets, Valuations, and Rent Income Ratios

• Focus on income, expenses, and performance of the asset instead of valuations.

• The economy is changing every quarter, so it is a time of hypervelocity change.

• Maximize liquidity and revenue stream of residents to keep assets flourishing.

• Real estate is still a great investment due to the supply and demand imbalance.

[13:48 - 20:56] How to Manage Real Estate Performance in a Recession

• Class B and A assets are good for buy and hold investments

• Know the strength and weaknesses of the market with supply and demand

• Rent to income ratio should not be more than 33% of someone's income

• Real estate market is hyperlocal; macroeconomic factors will behave locally

[20:57 - 30:47] The Key to Staying Liquid and Avoiding Cash Flow Problems

• Stay on top of liquidity of the project and operators

• Be responsive to draw requests

• Plan and prepare draw requests as though you're trying to get a new loan

• Provide certainty, confidence, and keep relation positive with lenders

• Be nice to lenders

• Draw early, often, and in small amounts

• Manage balance sheet and cash flow statement closely

• Understand the difference between Profit & Loss Statement and Cash Flow Statement

Quotes:

"We're living history, and we are experiencing things today that people in this industry for 30, 40, 50 years haven't experienced. The economy is literally changing every quarter."

"These times of crisis are when you learn how the banking system works and how the lending system works."

Connect with Kim through LinkedIn, Facebook, or visit https://www.thequattroway.com/kim-wendland

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Real Estate Runway Podcast is all about alternative business and investment strategies to help you amplify life, and maximize wealth! Click here to find out more about the host, Chad Sutton.

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