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Money Talk With Tiff

Money Talk With Tiff

    Money Talk With Tiff
    Episode•May 25, 2023•20 min

    Outsmarting Inflation: Tips and Techniques for Surviving High Prices | Ep. 232

    Are you worried about the current high inflation rate? Now is the time to start thinking of strategies to use inflation to your advantage! Bronson Hill, a leading financial educator, will discuss ways of investing in oil companies, real estate, and more during these volatile times. He'll explain why diversifying investments can help you navigate through these uncertain times, as well as provide tips on how to make the most of your assets. Get ready to learn valuable information about using inflation to your financial advantage - download his free ebook "How to Use Inflation to Your Advantage" and get access to his investment group for both accredited and non-accredited investors. Don't miss out on this incredible opportunity - listen now! Visit our site for more resources: https://moneytalkwitht.com About Our Guest As the Managing Member of Bronson Equity (www.BronsonEquity.com), Bronson is a general partner in 2000 multifamily units worth over $200M. Bronson co-leads a large in-person multifamily meetup in Pasadena, CA, called FIBI Pasadena Multifamily (www.fibipasadena.com). Bronson is the host of The Mailbox Money Show, and he understands the investor mindset, having spoken individually over the phone with over 1500 investors and has raised over $30M for real estate and his ATM Machine Fund deals. Bronson is the author of How to Use Inflation to Your Advantage and is a regular contributor to YouTube and his blog. Bronson is the Capital Raising Coach at Kingdom REI, a faith-based group helping investors find deals and raise funds for large real estate deals. Connect With Bronson Facebook: https://www.facebook.com/BronsonEquity LinkedIn: https://www.linkedin.com/company/bronson-equity/mycompany Youtube: https://www.youtube.com/channel/UCc1KYJL8ZjF3GC3Wh5lYNfg Instagram: https://www.instagram.com/bronsonequity/ This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

    Apple PodcastsSpotifyYouTubeOvercastAmazon Music

    Key Takeaways

    • 1

      Inflation is driven by printing more currency and reducing goods/services, creating a perfect storm during COVID with 40% currency increase and supply chain issues.

      Dollar has lost 99% purchasing power since Federal Reserve creation in 1913

      Current inflation officially 6-7% but likely 12-15% or higher

      More currency chasing fewer goods and services drives sustained inflation

    • 2

      Use leverage and fixed-rate debt to benefit from inflation by borrowing at low rates to buy appreciating assets.

      Borrow at 3-4% fixed for 30 years while inflation runs 6-15%

      Leverage amplifies returns - 10-20% appreciation on 20% down equals 50-100% return on invested capital

      Pay off debt with future dollars that are worth less due to inflation

    • 3

      Invest in inflation-hedging assets that produce cash flow and rise with prices: real estate, oil companies, ATMs, car washes.

      Oil companies benefit when gas prices rise

      Real estate rents and values increase with inflation

      ATM transactions have doubled in 20 years despite digital trends

    • 4

      Diversify across alternative investments outside Wall Street for built-in inflation protection and cash flow.

      Multifamily apartments, ATMs, car washes, precious metals

      Assets that can raise prices/rents over time provide natural hedge

      Cash sitting idle loses 12-15% purchasing power annually

    • 5

      Invest first in education through meetups, podcasts, books, and conferences before deploying capital.

      Learn vocabulary: cash flow, cash-on-cash return, IRR, tax benefits

      Meet operators with 5-10+ years experience and track records

      Start small to gain experience, then scale with diversification

    Intro

    • In this episode, Tiffany discusses strategies for profiting from inflation rather than being hurt by rising prices, featuring real estate investor and financial educator Bronson Hill.
    • Bronson Hill is Managing Member of Bronson Equity, general partner in 2000 multifamily units worth over $200M. He's raised over $30M, authored 'How to Use Inflation to Your Advantage,' and hosts The Mailbox Money Show. He leads FIBI Pasadena Multifamily meetup and serves as Capital Raising Coach at Kingdom REI.
    WebsiteFacebookLinkedInYouTubeInstagramFIBI Pasadena

    – What Is Inflation?

    • Bronson explains inflation as rising prices at stores and restaurants. Two main causes: printing more currency (Federal Reserve adding zeros digitally) and reducing goods/services (COVID supply chain issues).

    There's actually a 40% increase in the amount of currency over a two year period... And you have less goods and services because of COVID. So it creates, that's just the recipe for just sustained perpetual inflation.

    – The Dollar's 99% Purchasing Power Loss

    • Since the Federal Reserve was created in 1913, the dollar has lost 99% of its purchasing power. A penny's worth of goods 100 years ago now costs a dollar due to continual currency creation.

    – Owning Assets That Benefit From Inflation

    • Instead of suffering from higher prices, own assets that profit: oil companies (benefit when gas rises), real estate (appreciates and generates rising rents), businesses that can raise prices.

    When gas prices go up, it's actually a positive for you rather than a negative, right? So then you're actually on the other side of that equation.

    – The Power of Leverage and Fixed-Rate Debt

    • Buy real estate with 10-20% down at 3-4% fixed rates for 30 years. When property appreciates 10-20%, your return on invested capital is 50-100% due to leverage. Future dollars used to pay debt are worth less due to inflation.

    If I buy a house, I only put 10 or 20% down. The house appreciates over time, let's say it appreciates 10 or 20%. Well, I haven't had a 10 or 20% increase in the value of how much I invested. I've actually had a 100% increase, right?

    – Current Market Conditions and Opportunities

    • Rising rates have slowed lending and real estate activity. Bronson predicts lenders will return once rates stabilize. He recommends alternative assets like ATMs, car washes, and oil/gas deals that provide cash flow and inflation hedges outside Wall Street.

    If inflation really is actually 15%, that means if somebody has a hundred thousand dollars in their retirement or in their savings account, they could be losing $15,000 a year.

    – How to Evaluate Alternative Investments

    • Three-part framework: 1) Market analysis (population growth, job growth, business-friendly policies), 2) Operator/team track record (5-10+ years experience, admit challenges), 3) Deal terms (returns, timeline, tax benefits).

    When you talk to them, do they admit, Hey, this is the challenges we've had, or is it, Oh, this has always been perfect. Or is it their first one they've ever done?

    – Invest in Education First

    • Start with education through meetups, conferences, books, podcasts. Rich Dad Poor Dad is recommended for understanding assets vs. liabilities. Learn vocabulary to navigate investment discussions confidently.

    A lot of times it's just simply in their vocabulary. It's simply in the words that they're able to use.

    – Free Ebook and Investment Opportunities

    • Download free ebook 'How to Use Inflation to Your Advantage' at BronsonEquity.com. Investment group offers deals for both accredited and non-accredited investors including ATMs, car washes, and multifamily real estate.

    Books Mentioned

    • How to Use Inflation to Your Advantage by Bronson Hill
    • Rich Dad Poor Dad by Robert Kiyosaki
    • Fire Yourself by Bronson Hill

    Resources

    • Bronson Equity Website
    • FIBI Pasadena Multifamily Meetup
    • Kingdom REI
    • Money Talk with Tiff Website

    Topics

    inflation investingreal estatepassive incomealternative investmentsfinancial educationleveragemultifamilyATMscar washesaccredited investors

    Outsmarting Inflation: Tips and Techniques for Surviving High Prices | Ep. 232

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