The amount of money that the government printed in 2020 is staggering.  Technically it wasn’t the government but the central bank, from which the government then borrowed from.  There are conflicting reports, but it’s being said that about 30% of all the money that has ever been created in the country was created in 2020.  I’m not going to get into whether or not that was a good idea.  I do believe the intentions are good and it may have been necessary when the decision was made to shut down the economy.  Regardless, it doesn’t matter now.  Here we are and there is one pretty obvious fact that remains.  Printing more money and handing it out to businesses, people, and government agencies for which no goods, services, or value was exchanged has consequences.

So, the government hands out a bunch of money which they created from nothing.  The population of consumers now has an excessive amount of money to spend.  When people start spending, demand increases.  When demand increases, the companies selling the products raise prices as they fight to fulfill the lack of supply.  Combine this with an aging population, a shrinking workforce-age population, and high unemployment, partly due to generous unemployment benefits, and the labor force gets highly strained.  This means that there are less workers and not enough supply, so the cost of labor increases as well as employers scramble to find man-power.  This increased cost for labor gets passed on to the consumer which results in an increase in the cost for goods and services.  These rising of costs, due to many reasons, is what we call inflation.  If you want to hear an expert weigh in on this topic in much more detail, check out this video which I highly recommend.

Experts are saying that massive inflation is inevitable.  It’s simple economics.  We probably won’t be able to stop it.  But what we CAN do, just like with any of life’s curveballs that are thrown at us, is pivot, adjust, prepare, and take action.  If you simply let your money sit, your wealth will shrink as it loses value, now more quickly than ever.

However, let’s not stress about it because that accomplishes nothing.  Let’s align ourselves with it.  There is a way to not only preserve the value of your money in a high inflationary period, but to actually profit during it.

Buy Real Estate

Let me explain to you why putting your money into real estate is a great way to battle the coming inflation.

1. It’s important to buy real estate with debt. This kind of debt is not consumer debt like with a credit card.  This debt is low-interest, fixed-rate, long-term debt from a bank.  When you own real estate with a loan from the bank, instead of inflation eating away at your cash, it eats away at your debt.
2. The rising tide of inflation lifts all boats. What this means is that as the price for everything rises, so will the price of real estate.  The value of your property will rise as you own it.
3. As the cost of goods, services, labor, and wages rise, so will your rental income.

So, let’s sum this up.  As inflation spins out of control, it pays down your debt faster, raises the value of your asset, and increases your income.  This sounds like a pretty good deal, right?

I know what you’re thinking.  You have a job, own a business, take care of a family, and have lots of responsibilities.  You’re busy, I get it.  You don’t have time to become a landlord, let alone figure out how to properly find, buy, close, lease, and manage cash-flowing rental properties.  Well, you don’t have to do any of this to own real estate and fight the coming wave of inflation.

Partner with Sterling Rhino Capital on the next apartment complex we buy, by investing your cash into a tangible asset, while we do all of the work.  Investing in real estate this way is called a “syndication” and it’s something you should seriously consider, especially now that you know that inflation could be a real problem in the coming years.

Fighting inflation head-on is only ONE benefit of investing in real estate alongside us.  Check out these resources at the links below to learn about the others.

Tax benefits (blog post)
YouTube Channel (lots of content)
Instagram (biweekly inspiration and motivation)