How to Leverage the Economic Downturn
Never before in history has there been so much opportunity for true wealth building. If you’re the type of person who’s always dreamed of creating wealth for yourself and your family, it’s time to invest in real estate. It’s true that the rich keep on getting richer, but it’s not for the reasons you might think. Rich people keep growing their coffers because they make a habit of investing. They don’t stop investing when the market gets weird. They just invest differently. The wealthy have learned how to leverage downturns as well as upturns. You can do it, too.
Inflation is Rampant
There’s a downturn in the market happening right now. Inflation is rampant. Prices are up on food, clothing, fuel, rent and real estate. According to a recent Forbes article, the Federal Reserve is letting the public know to expect higher prices going forward. It’s no shocker to anyone paying attention that inflation was coming. Given the global pandemic and the government’s decision to “print” money for supplemental income payments, tax credits, special loan programs and medical vaccine sponsorships, it was bound to happen. Now we have disruptions in supply chains for the second time in a year, which would drive up prices even in the best of circumstances. Many people saw the rising tide months ago and prepared for the worst. But there’s only so much bathroom tissue and bottled water you can buy in advance without disrupting your family’s cash flow to the point of a trickle. Yet, despite all this financial mayhem, some people are just getting richer. How are they doing it?
Cheapest Debt in History
As we talked about in a previous post, it makes sense to borrow to invest if you can get a higher interest on the investment than you pay interest on the loan. Your profit is the difference between the two. But what we didn’t mention earlier is that it still sometimes pays to borrow to invest even if you don’t get a cash profit. We’ll explain:
Let’s say inflation is at 5%. (It’s actually at 5.37% as of July 2021. Yikes.) But let’s round down to 5%. Now, interest on debt is the lowest it’s been for decades. Most people living today have never seen the interest rates this low, to give you perspective. With good credit, you can get a mortgage as low as 3.06% as of the time of this writing. If you were ever planning to invest in real estate, now is the time to get a mortgage. Heck, now’s the time to buy as many turnkey rental properties as you possibly can. Because interest rates can hardly go lower. And it’s highly unlikely that you’re ever going to see rates this low for the remainder of your time here on Earth.
Do the Math and Get Rich
So here we are, in a situation where the government is outright telling us that prices are going to keep rising. Word on the street is that inflation is going to continue to rise for the next three to five years. No one has a crystal ball, so take that with a grain of salt. No one truly knows. We only know what’s happening here and now, and what’s already happened.
We’re also in a situation where debt is cheap. Money is cheap. So assets are going to continue to rise in value and it’s incredibly cheap right now to borrow money to buy those assets. And when we say assets, what we’re talking about is turnkey rentals. Your path to wealth has never been clearer, easier and more straightforward than it is right now in this moment in time. You should be shopping for a turnkey rental right now. You’ll essentially be getting free financing to build your wealth portfolio. Given the rate of inflation combined with the rate of debt, it’s free money. It’s the best time to buy real estate, ever.
So what are you waiting for? Choose one of our turnkey rentals, get financed at historically low rates and start earning passive income today!
“Martel Turnkey has been a pleasure to do business with. From the property inquiry to closing escrow to getting a renter in place; the whole process was extremely easy for a first time buyer such as myself. I plan on doing business with them again for more income producing properties.”
~ Hector, Bell Gardens, CA