Get Rich Education 442: How Inflation Stole Your Time, Florida New-Build Incentives
Get started with new-build Florida duplexes, triplexes, and quads right here.
Conventional personal finance says that you should be able to put in your time, effort, and energy when you're young.
When you're older, you can live a great life knocking back drinks served in coconuts.
That's being severely threatened.
Throughout history, some humans have perpetrated malicious time theft on other humans. Murder and slavery are extreme versions.
You're likely the victim of more subtle versions.
If you're working at a job, then you're selling your time, effort, and energy into the marketplace.
The proxy (currency) that you're receiving in exchange for the finite resources that you expended tangibly represents what you've sacrificed.
With dollar inflation blatantly debasing your currency from beneath you, your human life capital is being stolen.
Invest in what’s scarce and take real world resources to produce—real estate, gold bitcoin. Avoid what’s abundant and easy to produce—dollars and stocks.
I play an audio clip of Fed Chair Jerome Powell’s attack from Elizabeth Warren on raising interest rates. Last week, the Fed hiked rates for the 9th straight time.
A Florida builder of rent-to-own properties joins me - SFRs in the mid-$250Ks up to fourplexes.
Their build times have been reduced. They’re still paying a higher price for concrete.
They’re building smaller, entry-level rental properties that you can buy and have them manage.
The builder currently provides income property in: 7 southwest Florida markets, Jacksonville, Ocala, Palm Coast, Inverness, and Citrus Springs.
Square footages are falling.
Their site selection and stringent building codes are hurricane-resistant.
Until at least April 15th, 2023, they’re offering investor buyers 2% of the purchase price at closing (buy down your rate to ~5.75% today) and two years of free PM. Get started here.
Our in-house Investment Coach, Naresh, can help get you started. At times, he is paid a referral fee. This is in order to keep it free for you.
Resources mentioned:
Show Notes:
Get started with new-build Florida duplexes,
triplexes, and quads right here.
Fed Chair Powell vs. Senator Warren video:
https://youtu.be/Y-IK0xdcRW4
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RidgeLendingGroup.com or call 855-74-RIDGE
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Partial transcript:
Welcome to GRE! I’m your host, Keith Weinhold. Inflation is not only stealing your prosperity - it’s worse than you think… IT’S even stealing your time.
I’ve got some new perspective on how you can stop that from happening. Then, a fresh opportunity for incentives on path-of-progress income property in a great market. Today, on Get Rich Education.
Welcome to GRE! From State College, PA to College Station, TX and across 188 nations worldwide, the VOICE of real estate investing since 2014. I’m Keith Weinhold and this is Get Rich Education.
Inflation is a TIME thief. It’s stealing your time.
You know, here’s the problem. CW says that you should be able to put in your time, effort and energy when you’re young and live a great life when you’re older - maybe even live the life of your dreams someday.
But postponing things until a nebulous someday isn’t actually so great - and even THAT is being seriously threatened for you.
Look, throughout history, some human beings have perpetrated time theft on other human beings.
Now, extreme versions of time theft are murder and slavery. YEAH, that’s stealing your time.
But you’re likely the victim of more SUBTLE versions of time theft. If you’re working at a job and you’re selling your time, energy and effort into the marketplace…
Then the proxy - the money - that you’re receiving back for your human life expended - that money tangibly represents the time that you gave up.
That irreplaceable, unreplenishable highest order resource of time, that you gave away.
Well, with dollar inflation blatantly debasing your money away from beneath you, your human life capital is being stolen. This is evil.
Now, look. “Good money” is something that doesn’t degrade over time. Let’s look at this historically together & then I’ll bring it up to the present day for you.
Centuries ago, Europeans landed in west Africa. First, it was the Portuguese in the 1400s. The Europeans found that west Africans use beads for money.
Well, Europeans soon found that the beads are really cheap to produce in Europe but expensive to produce in Africa.
Well soon, they brought enormous quantities of beads into Africa and they purchased EVERYTHING valuable there.
There was NO WAY for beads to remain as money in Africa, no matter what the feelings of the bead holders were.
Anyone that kept insisting to use the beads as money completely lost their purchasing power. In effect, the beads ceased functioning as money.
Does that sound like any currency that you’re familiar with - any dollars or euros that you’ve got in your wallet today? Are you drawing any parallels here?
Now, rather than beads, gold became a popular currency for millennia - because gold is beautiful, durable, and it’s expensive to mine & produce across cultures - and it still is.
But as we reached modernity and we’re no longer in a world where everyone lives within 25 miles of where they grew up, gold fell out of favor as a currency - though it’s still a good STORE of value. Now you transact interstate and internationally more often.
Jet travel became common. Paper money allowed you to more easily move your value across space.
Today, you can electronically move dollars across space faster. But you can’t move dollars or really any sovereign currency very well across TIME… and that’s because of INFLATION.
Compared to 100 years ago, today’s dollar has about 3% of it’s value from a century ago.
So if you held dollars under a mattress for 100 years, you’ve lost the vast majority of your wealth.
If you held dollars under a mattress for 10 years, you’ve lost substantial wealth.
Lately, if you held your dollars under a mattress for 3 years, you’ve lost substantial wealth - or even if you held them in a CD or what they call a high-yield savings account.
What makes a good money is a good proxy for human time. You’ve got to be sure that your money doesn’t degrade over time & that you can store it and use it.
You need your medium of exchange in order to track your expended time.
When we talk about perpetrating time theft, your government - whatever nation you live in - they can push a button, print billions or trillions more in currency to pay for social programs and pay for infrastructure programs or another stimulus package or QE or to send dollars & weapons to Ukraine, and the Fed buys trillions in treasury securities and mortgage-backed securities, the $2.2 trillion CARES Act.
All those processes are inflationary. All this currency creation dilutes the currency that YOU hold.
That’s why that $20 bill that’s in your wallet right now was worth a tiny bit more yesterday than it is today.
And if your $20 bill stays in your wallet overnight tonight, it’s going to be worth a little bit less tomorrow.
What the easiest way to pay for a new $1.2 trillion government program? Just print $1.2 trillion dollars. They keep doing it. It’s why America has $32T in debt today.
Well, what often happens when your government pushes buttons to electronically create tons of dollars or pounds or euros or real or yen? More dollars get circulating.
You and the money that you have traded your precious life time for - you just got diluted.
A dollar is a low fidelity way for you to store your finite time and your finite life effort.
You might pledge allegiance by creating value for others in the workplace everyday.
But don’t pledge allegiance to the dollar. Your fealty should be toward accepting your INCOME in dollars but then, quickly getting out of them.
Are you upset? You should be totally upset. Every single day, pieces of your life, energy, and ambition are being stolen away from you. That’s immoral.
Now you’re being forced into investing. That’s what happens to people that are conscious of dollar dilution and how insidious, and persistent and severe and surreptitious it all is.
Now you need to go chase wealth preservation… with a sense of urgency! You’re being pushed out on the risk curve.
The S&P 500 is not the answer. With say, a 10% return over time, subtract out 5% inflation, subtract out emotion, volatility, subtract out taxes, subtract out fees, and your real return is less than zero in stocks.
See, dollars and stocks can be easily created and diluted. They can just print more - debasing what you’ve already got there.
Conversely, real estate, gold, and bitcoin cannot be easily created or diluted. All three take proof of work. All three take real world resources to create - real estate, gold, and bitcoin.
If you’re not familiar with bitcoin, it takes mining hardware, software, and electricity to create it - real world resources, and there will only ever be 21 million bitcoin.
Alright, so what can we learn from this? Unlike west African beads in the 1400s and 1500s which could be diluted and unlike dollars and stocks today which can be easily diluted, real estate, gold, and bitcoin cannot.
Gold is really just a wealth preservation instrument, only tracking inflation. It’s not proven to be accretive or additive to your wealth.
Bitcoin has some promise. But it’s still a nascent technology. It’s only been around 15 years. I like it but there’s still a lot of questions about it.
You’ve got to find a way to stop the time theft! What are you gonna do?
If you aren’t upset enough about it, think about how the theft of your time through currency inflation took away more life experiences with loved ones that you could have.
You could spend more of your one finite life on this earth with your mother, father, spouse, kids, church, hobbies, on the boat, at the lake, whitewater rafting, playing pickleball anything.
Certainly be offended and even a little outraged at the surreptitious time theft through inflation.
This is why… we are… real estate investors - and we get loans for property that produces income.
Now, you aren’t just HEDGING inflation. You’re profiting from it. With income property, you’re performing something ADDITIVE TO YOUR life time.
That’s the Inflation Triple Crown. The asset holds it’s own with price inflation. Your debt is being debased by inflation & paid back by the tenant… and thirdly, your income - that property cash flow outpaces inflation because the biggest payment - the mortgage principal & interest, stays fixed & inflation makes it easier to pay back as more & more dollars keep coming into circulation as over the years & decades, everything spirals higher - prices of all types, wages, salaries, expenses, taxes, everything.
This all penalizes the saver and favors the debtor. Be a strategic debtor with real estate. Win the Inflation Triple Crown. Win your time back - and then profit on top of that.
Now you know that inflation is stealing not just your prosperity… but your time… and now you know what you can do about it.
Most people don’t do anything about it. You have got to. It would have sounded like a bit of an exaggeration until you heard my explanation today - but you’re actually saving your own life.
Well, inflation, interest rates, and employment have been huge issues in the economy for about two years now.
Jerome Powell & the Fed began raising interest rates to control inflation a little over a year ago.
Let’s listen in on how heated and contentious this is all getting, compounded by bank failures.
This is about 4 minutes long, and then I’ll be right back. Listen to this confrontation.
This really summarizes the crux and intersection of a lot of these issues. It’s Fed Chair Jerome Powell testifying in front of the Senate Banking Committee’s Elizabeth Warren of Massachusetts. It’s a real clash over inflation:
[Play Powell-Warren clip]
Yeah, there we go. Elizabeth Warren would rather keep more people employed and have inflation spread across everyone rather than the other way around.
I think that the important lesson for you is that, inflation is going to keep happening. That’s a really safe bet, whether the level is the 2% Fed target or the 6% CPI that we’ve had lately.
Invest in what’s scarce and avoid investing in what’s abundant and multiplying.
Invest in what’s scarce and takes real-world resources to produce - that is predominantly real estate, maybe with a touch of gold or bitcoin.
Avoid what can be easily printed and diluted - dollars and stock shares.
What are homebuilders seeing today, is builder sentiment up off the bottom, and how is rental demand now that we’re deeper into 2023?
Let’s talk to our builder-provider guests about that. They have a strong incentive to offer you, the GRE listener. They are still building new construction rental homes in the mid-200s price point in Florida.
Let’s get caught up on builder sentiment and look for opportunity in in-migration hotbed Florida.
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Yeah, can you tell that they know what investors need? If you think that it sounds like the right “Real Estate Pays 5 Ways” opportunity for you amidst high inflation, I’ve got some more good news for you.
After our southeastern US provider was on the show here, I spoke with them again, and they’ve extended those generous incentives for your 2% closing cost incentive & 2 years of free PM until April 15th of 2023.
So you do have to act soon. Will it be extended beyond April 15th? We’ll see. You could ask, but they’ve been pretty generous already.
And also, this is an opportunity to work with our free, in-house Investment Coach, Naresh here at GRE to easily walk you through getting started with finding just which Florida market might be write for you, helping your write up the purchase contract, inspection, appraisal and all of that.
Now, you might have been an income property buyer that’s worked with Naresh already and maybe you feel a little bad that he’s spending his time helping you for free, well, you shouldn’t.
I have endeavored to really reduce the friction for you by always finding a way to make things free and helping you add more rental property to your portfolio and in the spirit of creating less friction for you, often, though not always, the property provider helps Naresh with recompense in the form of a referral fee.
So, Naresh does volunteer some of his time and resources for you, but he often is made whole that way, keeping it free for you.
So, we are really making it easy for you here with low property prices, strong builder incentives and free investment coaching.
Your opportunity to get the new-build, durable Florida product with management & incentives & free coaching. If it were any easier, someone would even make your down payment for you.
Well, no one’s going quite that far here.
If it sounds interesting to you, this is the window of opportunity. You can get started at GREmarketplace.com/Southeast.
Until next week, I’m Keith Weinhold. Don’t Quit Your Daydream!