Paul Hutchinson on Mindset, Real Estate and Giving
In a Family Office podcast interview, Richard C. Wilson speaks with Paul about his business path, philanthropy and child rescue work.
Richard C. Wilson introduces Paul and asks how he moved from a marketing business into real estate. Paul discusses the decisions, hires and relationships behind the firm's growth, along with his views on mindset, fundraising and giving.
In this video: Richard C. Wilson (Founder of the Family Office Club and host of the Family Office podcast), Paul Hutchinson (Co-founder of a multibillion dollar investment fund, founder of the Child Liberation Foundation and Liberating Humanity)
What they said
- Paul hired real estate experts. Paul says he lost half a million dollars on his first real estate deal and another $150,000 on the next, which involved his father's money. He says the experience showed him he needed people with stronger real estate expertise.
- Don Hartman warned Paul about the market. Paul recounts that Don warned him a multi-trillion dollar problem was coming and lenders would become owners. Paul says the warning led the firm to change its strategy.
- Paul built around his gaps. Paul says he and John Pennington lacked the background to manage a multibillion dollar fund. He believed that setting up the business to attract the right people could fill those gaps, and says that approach helped bring in experienced partners.
- Paul began giving while earning $2,000 a month. Paul says a mentor advised him to give over 10% of his money and up to 20% of his time. He says he began while earning $2,000 a month, rather than waiting until he felt wealthy.
- Paul changed the lending strategy. Paul says the firm made a complete pivot from bridge lending into large multifamily properties. He recalls the advice that well-managed B class multifamily could hold up across market conditions if the firm avoided excessive use and selling during a downturn.
In their words
"the truth of what had happened on these missions."
"finding out what their needs are, what's important to them, and then offering what you're selling as the solution to what they're wanting to create in their life."
Why it matters if you are building or preserving great wealth
Paul says he and John kept managing a few lingering assets through the downturn without taking management fees. He credits that work with building credibility among investors.
From Richard's exclusive Billionaires.com interviews
Lessons from Richard C. Wilson's one-on-one interviews, as published on each interview page.
- Anu Aga: Focus on one main cause. Her family found its giving more satisfying and impactful once it chose primary education for the underprivileged in India.
- Binod K. Chaudhary: Never chase a deal out of desperation. Stay cool and look at every part of the deal. Have your advisers and your finance team review it critically. Your counsel should review it too.
- Larry Connor: Learn from every mistake. Larry's team owns its failures and makes no excuses. They learn, change quickly, and keep getting better.
See the data
Frequently asked questions
What was Paul's first business?
Paul says he ran a marketing company for a program addressing anxiety and depression. He sold the company at age 29 for $20 million, most of it in restricted stock.
How did Paul get involved in his first child rescue mission?
Paul says an attorney general contacted him after he had donated to child related charities. He was invited to help fund a mission in Colombia and take part in it.
Sources
Quotes are copied from the video captions and checked against the transcript. Timestamps link to the moment in the video. General information only, not legal, tax or investment advice.