Summary: Inflation normally results from government policies which create inflationary pressures. The result of inflation can be best described as more money chasing fewer resources. The sad reality is that for most people inflation truly is detrimental and a silent theft.<br> <br> Real estate investors are in a unique situation whereby they actually benefit from inflation. The only hedge against inflation that we are aware of that works consistently over time, in any market, and any economy is real estate. But how?<br> <br> When you understand what inflation is, and how it benefits you as a real estate investor, you will want to build your real estate portfolio to take advantage of these powerful wealth building concepts.<br> <br> In this episode we explore inflation and why it's your friend. We also give you five (5) simple strategies to benefit from inflation in any market.<br> <br> We also take a look at another turnkey investment property available in our Deal of the Day segment.<br> <br> - - - - - - -<br> <br> Get your FREE copy of The Ultimate Guide to Passive Real Estate Investing.<br> <br> SUBSCRIBE ON ITUNES | Stitcher | Podcast Feed<br> <br> Give us a Rating & Review<br> <br> <br> <br> <br> 5 Strategies to Benefit from Inflation<br> Today, we are going to be talking about the exciting subject of inflation. Now, before you turn this off or shake your head and wonder how inflation can be exciting, keep listening because you will find out that inflation is actually your friend. You will see how it can be profitable for you in real estate. Let’s just lay a little bit of background here. The American economy has been bumping along pretty much since 2008. We haven’t really had a real economic recovery. Real estate markets have seen some activity here, especially in the last three to five years. We’ve seen considerable appreciation in many markets. But outside of the real estate sector, the economy has been relatively sluggish. This has forced the government to step in with various monetary policies that have done nothing more than create pent-up inflation. Some people are seeing it. We do have a bit of a deflationary environment, so you do see prices in some things like oil, recently, gasoline, technology coming down. But for the most part, if you look at your daily expenses, energy, housing, food, various consumer goods, those prices have been going up, so we do have an inflationary environment. At the same time, we have government policies that are creating pent-up inflation that we haven’t seen fully bloom at this point in time. The fear is that in the years to come, that could bring on rampant inflation.<br> <br> <br> <br> I am not a big fan of these government policies, the quantitative easing, the money printing that the Federal Reserve has been on, let’s call it a massive binge, since 2008. Inflation is just one of those things that are a reality. Now, when investors hear the word inflation, in fact, when the general population hears the word inflation, for many, it just sends shivers down their spine. They just hear inflation and they just think that everything is going to be more expensive. That it’s eroding their savings. It’s going to make saving for retirement even more difficult. Those things are generally true, but that doom and gloom is not all that inflation is about. Inflation is much more than that. If you are on the right side of the equation, you can benefit from inflation. At the end of the day, inflation’s effects are pervasive and they’re very subtle. Most people don’t realize that inflation is eating away at their purchasing power every year, but it is there. What you do is see a shrinking pay check. You see your purchasing power of your income get eroded, and that just translates to increasing costs for gas, energy, housing, food and other essentials. Let's dive in and take a closer at inflation.
