Here are the smart plays to make to not only be one of the last standing after this next phase of the real estate market, but to win big while others are freaking out.

Eliminate Exposure To Risk

A lot of players are currently exposed to massive risks. Solo investors, top selling Realtors, banks, and multi billion dollars funds and tech startups won’t be immune to the evolving market. It may take time for the waterfall effect to hit them, but once it does it can be too late to escape bankruptcy.

Holding onto properties, and holding debt are two of the biggest risks.

Eliminate your exposure by liquidating all of your mature investments, and switching to a wholesaling model. Use transactional funding to finance 100% of your deals, so that you are in, out, and paid in hours, without capital at risk.

Expand Your Network

Your network of contacts is what will get you through the next couple of years, and determine your level of success.

If you’ve been neglecting it, revive it now. Expand your database with new connections. Invest in  strengthening your relationships.

They will all be lead sources soon. Including Realtors, attorneys, other investors, bankers, etc. They may not want to sell on your terms right now, but they’ll soon need you too.

Educate Your Sellers

It may be hard to get sellers under contract for 30% of recent asking prices when they keep on hearing about how fast the market is growing. Some just won’t get it. Arguing with them will only turn them off.

Instead, take a consultative and educational approach. They may not sell now, but they will respect you later, and know who to contact to sell when they need to.

Educate them on market changes, how prices are formulated, and their options as they get into uglier situations.

Do this by publishing content online, by mail, email, and text message.

Don’t Let Leads Get Wasted

Investors have been spoiled with leads in recent years. They cost a lot, are hard to land, and easy to burn. Find a way to make money on them. Instead of only cherry picking the one or two out of a hundred you love, find a way to turn them all into dollars. Wholesale, keep them, refer them out, or find a partner for a JV.

Play The Long Game

Shred your five year plan. You’ve got to keep making money now. Yet, to get through this, and stay on top, you’ve got to think long. Think about where the market is likely to be in 7, 14, and 21 years, and how that will impact your liquidity, net worth, and lifestyle.

 

Hyperinflation is here. What is the best investment and income generator to beat it?

The cost of just about everything seems to be rising on one excuse or another. Some types of investments appear to benefit from that, but there may only be one which offers truly superior upside, with low risk.

Hyper-Inflation Is Here

If you’ve already been wholesaling a lot of real estate you may have too much money to have noticed it yet, but rapid inflation is here.

Food prices are up. Gas prices are up. In many cases small items may have had prices hiked by 30% or more over the past year. Even if that is $1 an item, if you spend $300 a week at the grocery store you may only be getting $200 worth of products compared to last year.

At the same time many are experiencing hyperinflation in their taxes between new types of taxes, and tax hikes.

So, many are experiencing less net income, finding what they have left doesn’t go as far as it used to. Then are paying more tax on any gains they make from their investments.

If you not only want to keep your finances balanced, but see them improve, you have to start supersizing your income and wealth growth faster than inflation.

How To Stay Ahead Of Inflation

Inflation can hike the price of many things. Including crypto currencies and publicly traded stock prices. Unfortunately, those types of speculative investments are also hyper risky. There is no downside protection at all. A single tweet can wipe out 20% of your wealth and capital in hours.

Real estate is typically the ideal investment to offset inflation. It typically goes up in line with, or better than inflation. As we’ve seen over the past year, the price of eggs may have gone up $1, but the average house price went up by at least $30,000.

However, now inflation is also hitting construction and labor costs. Meaning it is very expensive to build rentals or to fix and flip. The past year has also set brand new precedents in how rentals can be controlled by the government.

Then there is real estate wholesaling. It is by far the best income generating tool and investment in this type of environment.

It’s all upside, benefiting from inflation. In many cases extreme demand means you can buy pretty high and still sell for more the next day. However, with wholesaling you don’t get caught by the downside either.

Plus, you get to use 100% financing, keeping your cash for unexpected emergencies and use it for marketing and growing your business, instead of having it locked up in a house.

 

Many real estate investors are finding they are cash rich right now. With stocks, crypto, and other types of investments still looking incredibly risky and overpriced, why should you be financing your real estate deals, even if you have the cash on hand?

Why Not Use Financing?

It can sometimes be tempting to use your own cash to fund investments. Sometimes financing, and especially mortgage financing is seen as an extra step and cost.

It is worth pointing out that the richest billionaires and investors typically don’t use their own cash. They still use loans when they could pay for a property many times over. So there has to be some sense in it.

Financing doesn’t have to mean extra cost either. Not when you factor in the reduced risk of using leverage, the advantages of diversification and being able to do more volume, and the supersized true high cash on cash returns from putting less of your own money in.

This is especially true when interest rates are so low. Besides, when you are wholesaling and are in and out in a matter of hours or days, it doesn’t make much difference whether rates are 1% or 18%.

Stay Liquid

As much as that money may be burning a whole in your pocket, and you really want to use it, it can be even more important to have liquidity. They say that “cash is king.” That means having free cash on hand, not paying with cash.

Having more cash on hand means you are covered in emergencies, and the constant unexpected, and will remain a stronger borrower.

You will also be prepared to seize on even better and bigger deals as they pop up. The ones you usually have to kick yourself for missing out on because all of your cash is tied up in deals.

Invest Your Cash In More Profitable Things

What do you do with the cash if you can’t bear the risk of it just being eaten away by inflation or sitting in a bank?

There are certainly more profitable uses for it. Other ways to multiply it in your investing. Like putting it into marketing to find more and better deals, and finding better buyers who will pay more for your deals on the sell side.