A Huge Opportunity To Profit From Runaway Inflation

[20MillionDinar]

A Huge Opportunity To Profit From Runaway Inflation

Most investors already know that buying gold and silver is a smart way to hedge against high inflation. And especially against Zimbabwe-like inflation where as recently as 2008 people literally hauled cash around in wheelbarrows instead of wallets.

But many forget about the second best way to invest in a climate of high-inflation: Fixed- rate real estate debt.

Here’s why...

Inflation means there’s more money available in the system and it’s easier to get. Prices usually rise, but so do our incomes.

When you hold a mortgage in a time of high inflation, our incomes rise but the amount we owe does NOT.

So essentially the more inflation we experience, the easier it is to get money and pay off a mortgage that NEVER increases.

During hyperinflation, money is so easy to get that you can pay off a fixed-rate mortgage possibly overnight... with just one wheelbarrow full of cash!

So Mike is scrambling to secure as many fixed-rate mortgages as he can.

And that means raising his credit score.

Edited May 4, 2012 by 20MillionDinar

[WallyWeaver]

Well, I've already got 1 "fixed rate" mortgage.... mine!

I guess that's a start.

The thinking is correct, though. I've read that the one benefit to hyper-inflation, and inflation in general, is paying off fixed rate loans. Hey.... the silver lining, right? There's supposed to be one in every cloud (or at least that's what someone told me, anyway).

WW.

[20MillionDinar]

Well, I've already got 1 "fixed rate" mortgage.... mine!

I guess that's a start.

The thinking is correct, though. I've read that the one benefit to hyper-inflation, and inflation in general, is paying off fixed rate loans. Hey.... the silver lining, right? There's supposed to be one in every cloud (or at least that's what someone told me, anyway).

WW.

You're one step ahead of me! LOL. It's too expensive in Hawaii for me to be able to buy at this time. Oh well, hopefully one day soon...

I'm only 26 so I've got time!

[umbertino]

You're one step ahead of me! LOL. It's too expensive in Hawaii for me to be able to buy at this time. Oh well, hopefully one day soon...

I'm only 26 so I've got time!

WOW.....You're only 26? You sound like a mature man in your posts ( that's a compliment btw...).. I thought you were at least 40 or something.....

I feel old... ( just turned 55)....

[DinarMillionaire]

WOW.....You're only 26? You sound like a mature man in your posts ( that's a compliment btw...).. I thought you were at least 40 or something.....

I feel old... ( just turned 55)....

He is wise beyond his years, as the saying goes. I too am surprised. 20million you do have a good head on your shoulders. I never would have guessed you to be in your 20's. Thanks for your contributions to this site, youngster. LOL

[20MillionDinar]

WOW.....You're only 26? You sound like a mature man in your posts ( that's a compliment btw...).. I thought you were at least 40 or something.....

I feel old... ( just turned 55)....

LOL. Thanks Umbertino.

55...nah you're still young my friend!

He is wise beyond his years, as the saying goes. I too am surprised. 20million you do have a good head on your shoulders. I never would have guessed you to be in your 20's. Thanks for your contributions to this site, youngster. LOL

Thank you for the compliments. I have always enjoyed learning and studying, especially when it comes to investments & economics. I guess I have always been an entrepreneur by nature.

[DinarDana]

Wow I am impressed! Sheez

[mcdinarut]

I agree. I own my home, but have mortgages on two others. Interest rates are great right now! They are both paying or themselves. I call it retirement verification.

[20MillionDinar]

I agree. I own my home, but have mortgages on two others. Interest rates are great right now! They are both paying or themselves. I call it retirement verification.

Congratulations! I'm hoping to get into real estate within the next few years. Right now I'm ust trying to build up my capital and make sure my credit is stellar by then.

Hope inflation doesn't get too out of control by the time I am ready!

[mcdinarut]

I'm sure the market on the islands is outrageous. Last time we were on Maui, I picked up a real estate brochure just for fun. It's crazy! I purchased my first home when I was 22. Paid it off in less than 10 years. Used the equity to purchase the second home. Interest rates and closing costs are much better when you are financing your primary residence. Purchased the 3rd shortly after. Refinanced this last year. Interest is less than 4% on ea h property. Both have been successful rentals. It's great that someone else is putting money in my retirement plan every month. When I grow up I want a home in Hawaii:)

[umbertino]

LOL. Thanks Umbertino.

55...nah you're still young my friend!

Thanks my Friend... I do enjoy your posts.

[WallyWeaver]

26, huh? I had you down for early 30's..... I agree with umbertino, that is a testament to how well you conduct yourself here.

If you will allow it I would like to make a few comments on your involvement in the "New Financial System" thread.

It is no secret that I am a Christian and I do believe that there will be a new financial system at some point, though, not in the way many on that thread are saying. And I don't think they have their timeline right, either. But that's just me. The point is no one really knows the "when" or the "how," in my opinion. I think you have rightly pointed out that instead of spending all of one's time worrying whether the sky will fall it's best to go out and make a go of it the best that one can, with the current rules that are in place.

Oh, and I strongly disagree that Wall Street is an evil place to do business. I certainly don't think the chips are stacked against the small investor. I am a small investor (compared to the large firms) and I do great on the stock market. People who make comments about Wall Street, like have been made on that thread, are people who have virtually no experience in the markets, in my opinion. They operate out of fear; operating out of fear is almost never a good way to conduct one's life.

The stock market is simple, really, and anyone can make money there. Find a company that you believe in, that is undervalued, and become a part owner by buying shares in that company. What's evil about that? I think the fellows in that thread are referring to derivatives (I think) as being bad, which I do agree with. But the average investor simply sees a company he or she likes, weighs the potential (ie. natural gas or cloud computing), looks at the financials (year-over-year yield, dividend as a percentage of yield, etc.), and then goes into partnership with the company they choose. Nothing wrong with that, in my opinion.

The bottom line is, as you have rightly stated, I will probably walk away this summer with tens of thousands of dollars in profit from investments on Wall Street and those other fellows will probably still be on here talking about the coming collapse.

...

I'm not sure if you have any belief in the Bible but here are a few verses to consider if you decide to continue your arguments against those other fellows (these verses are not directed at you but, rather, at your opponents):

"Do not correct a scoffer, lest he hate you; Rebuke a wise man, and he will love you."

Poverbs 9:8

"A wise man fears and departs from evil, But a fool rages and is self-confident."

Proverbs 14:16

"A fool has no delight in understanding, But in expressing his own heart."

Proverbs 18:2

"A fool vents all his feelings, But a wise man holds them back."

Proverbs 29:11

Here are a few verses to consider in your approach to those fellows:

"A scoffer seeks wisdom and does not find it, But knowledge is easy to him who understands.

Go from the presence of a foolish man, When you do not perceive in him the lips of knowledge."

Proverbs 14:6-7

"He who has knowledge spares his words, And a man of understanding is of a calm spirit."

Proverbs 17:27

"If a wise man contends with a foolish man, Whether the fool rages or laughs, there is no peace."

Proverbs 29:9

Anyway, just a few things to consider. My opinion is any argument with those fellows will be in vain and will only cause you to walk away in frustration. It's best to simply "go from the presence of a foolish man" and to continue your quest in attaining wisdom.

WW.

[20MillionDinar]

26, huh? I had you down for early 30's..... I agree with umbertino, that is a testament to how well you conduct yourself here.

If you will allow it I would like to make a few comments on your involvement in the "New Financial System" thread.

It is no secret that I am a Christian and I do believe that there will be a new financial system at some point, though, not in the way many on that thread are saying. And I don't think they have their timeline right, either. But that's just me. The point is no one really knows the "when" or the "how," in my opinion. I think you have rightly pointed out that instead of spending all of one's time worrying whether the sky will fall it's best to go out and make a go of it the best that one can, with the current rules that are in place.

Oh, and I strongly disagree that Wall Street is an evil place to do business. I certainly don't think the chips are stacked against the small investor. I am a small investor (compared to the large firms) and I do great on the stock market. People who make comments about Wall Street, like have been made on that thread, are people who have virtually no experience in the markets, in my opinion. They operate out of fear; operating out of fear is almost never a good way to conduct one's life.

The stock market is simple, really, and anyone can make money there. Find a company that you believe in, that is undervalued, and become a part owner by buying shares in that company. What's evil about that? I think the fellows in that thread are referring to derivatives (I think) as being bad, which I do agree with. But the average investor simply sees a company he or she likes, weighs the potential (ie. natural gas or cloud computing), looks at the financials (year-over-year yield, dividend as a percentage of yield, etc.), and then goes into partnership with the company they choose. Nothing wrong with that, in my opinion.

The bottom line is, as you have rightly stated, I will probably walk away this summer with tens of thousands of dollars in profit from investments on Wall Street and those other fellows will probably still be on here talking about the coming collapse.

...

I'm not sure if you have any belief in the Bible but here are a few verses to consider if you decide to continue your arguments against those other fellows (these verses are not directed at you but, rather, at your opponents):

"Do not correct a scoffer, lest he hate you; Rebuke a wise man, and he will love you."

Poverbs 9:8

"A wise man fears and departs from evil, But a fool rages and is self-confident."

Proverbs 14:16

"A fool has no delight in understanding, But in expressing his own heart."

Proverbs 18:2

"A fool vents all his feelings, But a wise man holds them back."

Proverbs 29:11

Here are a few verses to consider in your approach to those fellows:

"A scoffer seeks wisdom and does not find it, But knowledge is easy to him who understands.

Go from the presence of a foolish man, When you do not perceive in him the lips of knowledge."

Proverbs 14:6-7

"He who has knowledge spares his words, And a man of understanding is of a calm spirit."

Proverbs 17:27

"If a wise man contends with a foolish man, Whether the fool rages or laughs, there is no peace."

Proverbs 29:9

Anyway, just a few things to consider. My opinion is any argument with those fellows will be in vain and will only cause you to walk away in frustration. It's best to simply "go from the presence of a foolish man" and to continue your quest in attaining wisdom.

WW.

WW.

Thanks for the post. Yes I do believe in The Bible. I wish I would have read this about 2 minutes ago as I just replied in the New Financial System thread. But, I think that will be my last one in that particular thread. Thanks again, I actually needed to be reminded of this. The timing couldn't have been better.

Thanks again WW.

Edited May 6, 2012 by 20MillionDinar

[pattyangel]

You're one step ahead of me! LOL. It's too expensive in Hawaii for me to be able to buy at this time. Oh well, hopefully one day soon...

I'm only 26 so I've got time!

Wow 26, I would love to be 26 again, my poor body wants to be 26... so in my dreams I am 26. Enjoy your youth.

WW, on of my favorite...Wally Weaver you are a wise man.

"A fool vents all his feelings, But a wise man holds them back."

Proverbs 29:11