JF 3927: Avoiding Fraud, Understanding Returns, and Protecting LPs in CRE ft. Paul Moore

The Best Ever CRE Show

Best Ever CRE

Realestatepodcast, Entrepreneurship, Business, Realestate, Investing, Realestateinvesting, Realestateinvestingpodcast

4.8 • 983 Ratings

🗓️ 5 June 2025

⏱️ 58 minutes

🔗️ Recording | iTunes | RSS

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Summary

On this episode of the Passive Income Playbook, Pascal Wagner interviews Paul Moore, founder of Wellings Capital, to unpack one of the most misunderstood concepts in real estate investing: the capital stack. They dive deep into the distinctions between common equity, preferred equity, and mezzanine debt—breaking down how each affects risk, return, and control. Paul shares why his firm has shifted from common to preferred equity over the last five years and explains how LPs can benefit from this approach—especially in today's volatile lending environment. He also introduces a new hybrid strategy that balances preferred protections with common equity upside, and closes with key tips on how LPs can avoid fraud and conduct meaningful due diligence. Paul Moore Current role: Founder & Managing Partner, Wellings Capital Based in: Blue Ridge Mountains, Virginia Say hi to them at: https://wellingscapital.com Get a 4-week trial, free postage, and a digital scale at ⁠https://www.stamps.com/cre⁠. Thanks to Stamps.com for sponsoring the show! Post your job for free at https://www.linkedin.com/BRE. Terms and conditions apply. Join the Best Ever Community The Best Ever Community is live and growing - and we want serious commercial real estate investors like you inside. It’s free to join, but you must apply and meet the criteria. Connect with top operators, LPs, GPs, and more, get real insights, and be part of a curated network built to help you grow. Apply now at ⁠www.bestevercommunity.com⁠ Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	As a CRE investor, flexibility in when and how I get tasks done is essential.
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1:06.9	who's tired of shiny objects and just wants a repeatable system to filter through deals,
1:13.0	I've got something for you. In a free webinar that I'm hosting, I'll walk you through the
1:19.8	exact three-step framework I use to eliminate bad fit investments and focus only on the ones
1:27.0	that match my goals. If that type of webinar
1:29.6	is interesting to you, head over to best ever cRE.com slash grow cash to sign up, and we'll
1:37.8	see you there. And with that, let's get back into the show. Have you ever seen the words preferred equity or common equity in a deal memo and just skipped
1:48.8	over them hoping that they weren't that important?
1:51.4	In today's episode, the passive income playbook on the best ever CRE show, we're breaking
1:56.4	down one of the most misunderstood parts of passive investing, the capital stack.
2:01.1	Specifically, we're going to explain what preferred equity actually is,
2:06.0	how it compares to common equity, and what that means for your returns and your risk as an LP investor.
	...

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