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How To Survive & Leverage Rapid Inflation In 2022

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on Thursday, 30 December 2021
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Inflation in 2022 is expected to accelerate far faster than we’ve seen in decades. Even beating out the hyperinflation of 2021.


As a real estate investor you should be prepared to survive it, and understand how to leverage it to your benefit, instead of becoming a victim of it.


Transwarp Inflation

We are running out of terms to describe just how fast inflation is accelerating in the US. Some have started dubbing the pace we’ll see in 2022 as ‘transwarp’ inflation. Transwarp is about 8x the speed of light. It is a whole new dimension and laws of physics.


It is quite likely we will see mind blowing inflation over the next year. Price increases many didn’t think possible.


Consider that the Dollar General has been bringing in a new brand, called Popshelf, which targets prices around $5, instead of $1. Major food suppliers like Heinz are also increasing prices on some groceries by 20% in the first three months of the year. The actual retail price tag that consumers have to pay could go much higher.


In some places rental rates have gone up over 70%. Insurance rates have already gone up by 30% on many customers.


As a real estate investor or business owner you must anticipate these changes, and budget for them. Otherwise you could soon be in the red. Price in inflation on everything, including labor, software, marketing, title, taxes, interest rates, and utilities.


Property Prices

House prices have been growing even faster than inflation in some areas already. Property prices could go up much further in 2022. At least in some areas. Especially with ongoing migration and new covid variants. Use it to your benefit in flipping houses. Price it into your offers.


Distressed Inventory

Extreme inflation means many will no longer be able to keep up financially. At least unless they are also benefiting from COVID and the shifting economy. Such as  startup entrepreneurs, CEOs of big business, and real estate investors. That means the potential for millions more falling late on housing payments. This could provide much craved inventory for real estate wholesalers, flippers and landlords.


With the right marketing, connections and pitch, you can help out these property owners, help them exit to somewhere they can afford, and be well paid in the process.

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The Best Investment For Beating Inflation

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on Thursday, 13 May 2021
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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.

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