EP#351 Investing in real estate: benefits in an inflationary environment Ft Aaron Chapman

Send us Fan MailIn this podcast episode, the host interviews Aaron Chapman, a highly experienced finance industry veteran specializing in helping clients finance cash flow positive investment properties. Aaron shares his personal journey, starting from humble beginnings to becoming a top 1% mortgage loan processor. He discusses the challenges of the market, shifting rates, and securing loans. Aaron also delves into the history of interest rates and their impact on the real estate market, emphasizing the importance of understanding real estate investing and having long-term reserves. He highlights the benefits of investing in real estate in an inflationary environment and provides tools and resources for potential investors. Overall, Aaron aims to provide value and influence others in the real estate industry.Aaron Chapman: A Veteran in the Finance IndustryIn our conversation, Aaron shared that there are over a million mortgage lenders in the industry. Despite the stiff competition, he was recently ranked number seven in the United States in terms of the number of transactions closed. He acknowledges that the market is becoming more challenging with shifting rates and increasing difficulty in securing loans.The Journey to SuccessWhen asked about his journey to becoming a top 1% mortgage loan processor, Aaron shared his personal story. He started from humble beginnings, working various jobs in different industries. He recalls a time when he was financially struggling and couldn't even afford diapers for his infant son. However, a chance encounter with a former colleague led him to the mortgage industry.His career took off, but not without setbacks. A motorcycle accident left him in a wheelchair and with memory loss. Despite these challenges, he found a new channel in working with real estate investors buying cheap properties in Arizona. This led to his expansion into other states and eventually ranking in the top ten in the country.Educating People About Interest RatesToday, Aaron's main focus is educating people about interest rates and where he believes the market is heading. He emphasizes that the current high interest rates and inflation are not temporary and advises against getting adjustable-rate mortgages.Aaron discussed the history of interest rates and their impact on the real estate market. He shared a chart showing the average interest rates for homeowners from 1971 to 2022, highlighting the effects of quantitative easing by the Federal Reserve. He explained that quantitative easing involves the Fed investing in the markets, which increases the supply of money and lowers interest rates.Predicting the Future of Interest RatesDuring the pandemic in 2020, the government injected a significant amount of money into the market, causing interest rates to rise. Aaron also discussed the concept of moving averages and how they indicate the direction of the market. He predicts that interest rates for homeowners may reach the sixes and sevens, while rates for real estate investors may be in the sevens and eights. However, he advises listeners not to worry and emphasizes the importance of understanding real estate investing and having long-term reserves.The Power of Real Estate InvestmentAaron discussed the benefits of investing in real estate in an inflationary environment. He explained that property values are increasing year over year, with an anticipated 5-6% increase in 2023. Using an example of a $200,000 house appreciating by 25%, he demonstrated how the investment can yield a 10% increase.He emphasized that this is before considering cash flow, which many people overlook. While $100 a month cash flow may not seem significant, Aaron points out that in an inflationary environment, rents can be raised, leading to double-digit increases in cash flow over time.Inflation: A Friend or Foe?He also highlighted the advantage of inflation in reducing t Support the showFollow Rama on socials!LinkedIn | Meta | Twitter | Instagram|YoutubeConnect to Rama Krishnahttps://calendly.com/rama-krishna/ E-mail: [email protected]: www.ushacapital.comRegister for Multifamily AP360 - 2026   virtual conference - https://mfap360.com/To find out more about partnering or investing in a multifamily deal:  email: [email protected]