Debt is bad….
….so says every financial guru on the web.
Most notable being Dave Ramsey, one of the most prominent financial personalities who is very averse to the concept of debt.
Now, I’m not going to be spending the bulk of this email bashing Ramsey.
In fact, there is a nugget truth in Ramsey’s assumptions about debt.
As far as debt is concerned, consumer debt is a no-no.
That I can agree with Ramsey on.
Most people who use this kind of debt are acquiring items and services with depreciating value.
Any sane individual would avoid this kind of debt like the plague.
Getting into debt to acquire an income property….
….that’s a whole different ball game and it’s also where I believe Ramsey is off the mark.
You see, post-1971 America (1971 being the year that America completely withdrew from the gold standard) is a debt-based economy.
Debt is heavily favored by the tax system.
If you’re serious about building wealth, it’s in your interest to get into debt for the purpose of obtaining a multi-dimensional asset class like income properties.
Doubly so in an environment of inflation.
The game is changing as we speak.
The advice the financial gurus give about debt perhaps have validity for certain areas such as consumer debt.
And it possibly had merit in previous decades when inflation was kept in check.
But now the game has changed and you have to adapt to the new reality.
While inflation is a scourge to a country’s economic health, savvy investors can game it to their advantage.
Income property investors are in a unique position to thrive in the inflationary decade to come,
Allow me to explain….
Income property arbitrage is at the crux of thriving during a bout of inflation.
Let’s start defining arbitrage.
Arbitrage is when an investor profits by exploiting small price differences between similar (or identical) financial instruments.
Arbitrage takes place due to pricing inefficiencies that exist in a market.These small price blips can snowball into big cash flows for the shrewd investor.
Just look at George Soros. Say what you want about him…. but Soros knows a thing or two about making a fortune in the margins of the currency market.
But we’re not here to fawn over Soros.
We’re here to talk about the wonders of Double Inflation Arbitrage in the income property market.
Here’s the nitty gritty on Double Inflation Arbitrage.
You go to your local bank and say, “Bank, I have a proposition. I’m going to put down 20% of the purchase price for this property and you’re going to loan me the rest.”
If your credit record is on point, there’s a good chance that the bank will agree and extend you a loan.
However, you’re left with the loan debt that must be repaid.
Indeed, life can be quite annoying in this regard.
But you’re an empowered investor who sees a solution for every problem that pops up.
It occurs to you that you can rent your property out so that the tenant is the one who pays the carrying costs of the mortgage.
In this entire process, the mortgage is losing real value from inflation.
A raw deal for the bank, but a fantastic deal for you.
That’s your first inflation benefit.
And it only gets better….
Historically speaking, assets like properties appreciate faster than the rate of inflation.
Voila! You’re benefiting from this also.
That’s the beauty of Double Inflation Arbitrage.
This is no fantasy. Double Inflation Arbitrage works in real life.
You can learn how to use Double Inflation Arbitrage to create life-changing wealth and much more at the Empowered Investor Inner Circle — the go-to community for the income property investor who wants to maximize their return on life.
At the Empowered Investor, I and the growing number of entrepreneurs inside this network will teach you about using the right kind of debt to create wealth and thrive in inflationary times.
This is a community of proven income property investors who are ready to share with you their game-changing insights that will allow you to build a mean portfolio laden with cash flow-generating assets.
Ditch the debtphobia of the average financial guru and embrace the perks of owning income properties by joining the Empowered Investor Inner Circle TODAY.
New levels of wealth await you at the link below: