Bloomberg has just mapped out a recent $100B shift in wealth in the US. Where is the money leaving and going to? How can you make sure you are a beneficiary rather than a loser in this transition?

Wealth Is On The Move

According to a new map from Bloomberg News, $100B in wealth has already shifted. Mostly to the south. Much of it out of California, and the Northeast, and even mid-east coast.

Some has gone to parts of central Texas. Though Arizona has been a significant recipient too. With Florida appearing to be the biggest winner. Though, with wealth actually leaving the Miami and South Florida or Orlando areas in favor of more northern parts of the state.

More Wealth Migration Is Coming

There are many factors which are highly likely to keep on moving wealth.

This includes continuing to compound the reasons people and businesses are fleeing, with higher taxes, and unfriendly environments for businesses.

More Fed interest rate hikes are expected this year, which will compound inflation and force more to move out of lack of affordability.

Predictions that inflation will fall by 2% by 2024 are likely just playing smoke and mirrors with the data. Even if it comes down 2%, but real inflation has risen by 30% or more recently, that isn’t near enough of a cut to make a difference for most consumers, workers, and property owners.

The Real Wealth Shift To Care About

The real wealth migration that should be on our minds is that between individuals and corporations, or other entities.

We are probably about to see one of the most significant of these shifts in our lifetimes. The richer are getting much richer, much faster. The middle class and below are going to be bled dry fast.

As a real estate investor you want to make sure you are on the receiving end of this wealth. There are several ways to position for this.

Which includes operating in the states and areas where the money is moving to. When the money moves it, that means big bumps in house prices, local spending, rents, and more. You can target the movers themselves too. Helping them from where they are trying to move out of.

You can invest ahead of this to find the deals, and wholesale them for more.

Despite all the talk about distress, mortgages in forbearance programs, unemployment, and businesses being locked down, the wealthy have not only survived unscathed, but have been enjoying great gains.

How are they doing it? How can individual investors and small real estate businesses make this their best year ever too?

Banking Billions

Data from Business Insider and The Guardian shows that America’s billionaires have only been enjoying more gains and wealth creation through the COVID pandemic and other chaos happening in 2020.

Within just 23 days of the first lock downs they added just short of an additional $300B to their net worth. By the summer they doubled that again to over $600B in new gains, adding almost $5B a day in profits.

Finding A Sweet Spot In Real Estate

One of the most notable trends we’ve seen since the beginning of the coronavirus pandemic is a growth in house prices.

Some data does show that there are a significant number of households that have been lagging in paying their mortgages and rent. Yet, House prices keep on heading up. Partially in response to a major shift in where people want to live and the types of housing that are needed now. As well as an enormous amount of capital fleeing other scary and more volatile and risky investments.

We’ve continued to see the likes of Jeff Bezos adding to their big real estate portfolios.

House Flipping

More and more celebrities and business icons seem to be increasingly relying on real estate to protect and build their wealth.

Given the recent disruption in the retail industry you can bet that Tommy Hilfiger has been honing his skills at flipping houses over the past few years. He is now reportedly on his eighth house flip. His recently listed house in Greenwich, CT is asking $47.5M. Over $16M than he paid for it.

In the Hamptons, one luxury home flipper has just relisted a 6.7 acre compound for $72M. That’s a potential $27M gross profit on a property purchased in the middle of the pandemic in April 2020.

Scaling Your Own Wealth

You don’t already have to be a billionaire or a fashion celebrity to make this kind of money, or to make this the best year for your finances yet.

• Set really BIG goals

• Try joint ventures with new partners

• Use transactional funding for financial leverage

• Look to undervalued areas where the most people are moving

 

There are a lot of choices in life and business. We don’t always frame them right. That can lead to a lot of lost opportunity and self-sabotage. If you’re in the real estate industry, or have been dancing with the idea of getting started in real estate investing, it’s worth asking these questions.

Would You Rather Spend a Lifetime Working for Someone Else or Take a Chance on Freedom?

Some people see making the leap into real estate investing or a career as an independent real estate pro as a risk. Others recognize how unreliable working for someone else is. How unsafe it is to bet your life on another boss.

Ironically, if you still haven’t made the leap, you’ll probably find it hard to find anyone who has tried working for themselves who would ever consider going back to a salaried job. Meanwhile, it’s a lot harder to find anyone who loves their job working for another company. Try asking around.

After all, what’s the worst that could happen if it doesn’t work out? You’ll probably be just right back where you are.

Would You Rather Settle for a Mediocre Real Estate Career or Hit Your Full Potential?

There are a lot of house flippers and other investors and agents who are doing very well, just by doing a few deals a year. Just one house every three months (4 a year) can deliver an income far beyond the average salary.

You might have more freedom, money, prestige and nice things, but is that it?

There are others doing 10 or 20 wholesale house deals or sales every month! It’s not about competing. It’s about knowing you are living to your full potential. Having no regrets.

Would You Rather Get Rich Fast for 15 Minutes or Enjoy a Wealthy Legacy

As a lot of people are about to find out when the market changes again, there is a huge difference between getting and staying rich. Get into real estate and you might blaze through your 5 year goals in a year, and achieve more than you ever thought possible. Though, if you’ve just taken a lot of high risk and questionable short cuts, it may not last long.

They only thing worse than tasting that success is losing it all. The bigger you are, the more it hurts when you fall. Ask the billion dollar real estate agents and investors who ended up in line begging for a minimum wage job at McDonalds in 2008. Most of whom couldn’t even get hired there.

Do go big. Do go fast. Just make sure you have a plan and are doing it sustainably. Then it can last a lifetime and longer.

Would You Rather Be Making Great Money & Be Working Like Crazy or Have Time Freedom?

Once in real estate you can quickly lose sight of your original dream of having more free time. Making more money is great. Though you can be really busy and be making a lot less than others who are simply working more efficiently and productively.

Don’t be stuck working crazy hours, nights and weekends. If you’re well organized you should be able to enjoy a 4 day work week and set your own schedule and vacations. Make sure you are using all the tools and help at your disposal.