Raise your hand if you think inflation will soon go away and never be heard from again. Not many hands going up out there that we can see except from stock brokers and ostriches. Both like to bury their heads in the sand. Inflation is a fact of life and always will be. The Federal Reserve said as much when they told us they like to see an annual inflation rate of 3 to 4 percent, which means they WANT the currency to be constant devaluing process.
Any legitimate realtor training program, like AIPIS, must acknowledge this reality and take it into account when designing course materials. What does inflation have to do with real estate? If you’ve been following this blog for any length of time, you know the answer to that question is, “Quite a lot.” As inflation worsens, and it will, your duty to your clients will include serving as educator and mentor about income property investing.
When Wall Street fails, as it already has, people are going to need another way to invest for cash flow and retirement. Any realtor training program that doesn’t incorporate income property is ignoring what is happening in the world right now. Today. First, consider the fact that we have institutionalized inflation, which devalues currency at least at the rate of 4 percent per year if not more. Now let’s think a minute about which investments are cash-based and rise and fall with inflation.
1. stocks
2. bonds
3. mutual funds
Ouch. Everything Wall Street sells loses value in the face of inflation. Property is the only asset that not only holds it’s value but actually performs better as an asset in the face of inflation. If your realtor training program can’t explain to you why this is, keep looking. With a future guaranteed to include increasing inflation, a portfolio based in income properties is the average American’s last, best chance to change their financial future for the better.
Realtors or those who want to be one some day, we invite you to browse the website and give serious thought to the idea that money and wealth in the future will likely revolve around a single idea – inflation. Knowledge is your best defense. AIPIS is the best tool.
The AIPIS Team
Flickr / paul nine-o