Using Inflation to Erode Your Debt: Real Estate Investing with KenMcElroy.com

by | Apr 28, 2023 | Invest During Inflation | 25 comments

Using Inflation to Erode Your Debt: Real Estate Investing with KenMcElroy.com




Click this link to get a free copy of the video notes:

Learn more about Ken McElroy and sign up for his video library at:

Join Ken McElroy as he explains how investing in cash flow positive real estate investments will have significant benefits as the U.S. economy moves into a more inflationary period.

• • •

Check out some of our recommended products! Please note: These are our sponsors & advertisers, so if you use them, we will get compensated. There’s no additional cost to you.

For your banking needs:
➤ Business Banking for Small Businesses and Freelancers
🏦 NorthOne – Open a business banking account in 3 mins and get $10:

For locating investment properties:
➤ What is Driving for Dollars? Driving for dollars is a more direct approach to finding wholesale properties than simply sending out emails to inboxes or letters in the mail. It’s the term used when you drive around a neighborhood that you think could house future wholesale deals, then document distressed properties to create unique lead lists. Oftentimes, it can be more profitable than other techniques. Ken’s fans instantly get $15 in credits with promo code KenDM!

• • •

⏰ Timestamps ⏰:
0:00 Introduction
1:47 General Outlook for U.S. Federal Government Debt
2:43 Personal and Government Debt
4:51 Government Debt as a percentage of GDP
6:42 Fed Inflation Target and its Impact
8:10 2021 and Beyond
11:33 Savers will be Losers
12:33 Inflation Winners and Losers
15:40 The Impact of Debt as GDP over 100%
20:20 How Can You Profit from Inflation
21:34 Understanding the Debt Clock

See also  Prepare Now for the Most Severe Market Recession Crash in a Century

Be sure to click the bell to be notified as soon as the next informational video is posted!

Purchase a copy of Ken’s new book, “The ABCs of Buying Rental Property,”:
Visit Ken’s Amazon Shop:

Ken has a real estate strategies podcast! Follow on your favorite platform for new discussions released weekly.
Apple Podcasts:
Spotify:
Website:

Ken is the author of the bestselling books The ABC’s of Real Estate Investing, The Advanced Guide to Real Estate Investing, The ABC’s of Property Management, and has an upcoming book: “ABCs of Buying Rental Property: How You Can Achieve Financial Freedom in Five Years.” Ken is a Rich Dad Advisor.

Ken’s company:

#KenMcElroy #RealEstate #Investing

To learn more on this topic follow the links below:

Rick Kahler: Inflation a Tool to Reduce National Debt | Kahler …kahlerfinancial.com › Home › Weekly Column
How Does Inflation Reduce Debt? With inflation, the losers are the people and institutions that own the debt, because the currency shrinks in value. For example, …

Why inflation makes it easier for Government to pay debt …www.economicshelp.org › blog › economics › why-inf…
Aug 4, 2016 — How does inflation affect national debt and bondholders? Unexpected inflation can lead to ‘partial default’ and reduce real value of bonds. but it …

Inflation Is the Way to Pay Off Coronavirus Debt – Bloombergwww.bloomberg.com › opinion › articles › inflation-is-…
May 7, 2020 — Inflation Is the Way to Pay Off Coronavirus Debt … this period [from 1946 to 1955] was 4.2%…inflation reduced the 1946 [federal] debt/GDP ratio …

See also  Effective Asset Protection Strategies that Actually Work - Refresh Your Wealth Podcast

Inflation and Debt | National Affairswww.nationalaffairs.com › publications › detail › inflati…
Lower interest rates drive higher “demand,” and higher demand reduces “slack” in markets. Eventually these “tighter” markets put upward pressure on prices and ……(read more)


LEARN ABOUT: Investing During Inflation

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing


Debt is a common problem that people face everywhere, and it can be overwhelming, especially when it seems like there is no way out. However, there are strategies that can be used to reduce or eliminate debt, and one such strategy is using inflation. In this article, we will discuss how inflation can be used to erode your debt and how real estate investing can help achieve this goal, with KenMcElroy.com as an example.

Inflation is an economic scenario where prices of goods and services continually rise over time, while the value of money decreases. It means that if you owe a debt of a specific amount, inflation will reduce the debt’s actual value over time, making it easier to pay it off eventually. By investing in real estate, you can use inflation to your advantage and erode your debt in real terms.

Ken McElroy, a real estate expert, and the owner of KenMcElroy.com has been in the real estate business for over 30 years, and he has successfully used this strategy to reduce debt. He advises that investing in income-producing real estate can be an excellent way to use inflation to erode your debt. The reason being, as inflation increases, so does the rental income, which means your property becomes more valuable in real terms.

See also  Caution: Canadian Real Estate Poised for Another Boom.

Additionally, the value of the property can also increase as the cost of building materials, construction, and land acquisition costs increase over time. Increased property value means, you can potentially refinance the property or sell it at a profit, using the proceeds to pay down your debt.

Furthermore, if you are familiar with inflation, you understand that inflation is not always guaranteed, and it can fluctuate. Therefore, it’s essential to do due diligence and assess the risks involved with investing in real estate. However, following Ken McElroy’s advice, you can make strategic investments that have a high probability of returning real value in the long run.

In conclusion, using inflation to erode your debt is a sound financial strategy, and real estate investing is one of the ways to achieve this. By investing in income-producing real estate, you can benefit from rising rental prices and increased property value over time, which can be used to lower your debt in real terms. KenMcElroy.com is a valuable resource when it comes to real estate investing, and his advice on using inflation to pay down debt can be a game-changer for those struggling with debt.

Truth about Gold
You May Also Like

25 Comments

  1. DJ WAMY

    12:16 reason why it’s eroding is because there’s a marginal leap on the inflation. When you keep on saving you won’t keep up in “TIME”. So it’s no point on saving that’s why the value of a dollar drop while the printing and cost of living margin increases. That’s insane.

  2. Phil Waller

    govt debt is the private sector surplus – the US govt creates the $ – private debt is the main cause as we canot issue the $ – that would be counterfeit. inflation is because of corp profiteering – target the profiteering – The US FED tackling inflation via monetray policy is analogous to pushing on a string – its ridicuclous!

  3. Old Man

    Seems even more relevant today (2023).

  4. Patricia Carlos

    A weak dollar can signal an economic downturn, making me to ponder on what are the best possible ways to hedge against inflation, and I've overheard people say inflation is a money-eater thus worried about my savings around $200k

  5. T Lem

    Who is the one in governement that wants to inflate away the debt? Fed reserve seems to do be the opposite due to reputation so who is it in govt?

  6. Kasoka Chibanga

    Does this work all over the world?

  7. Eric Killian

    Inflation 8+ percent, wow this video aged well.

  8. Habibj

    The GOV’T spending is out of control.

  9. ChuChi Yang

    Inflation is crazy

  10. Henrik

    US debt is now at 30,6 Trillion and rising… and the GDP counter is actually going down…

  11. jonny cash

    thanks ken

  12. GERMAN COLMENARES

    Amazing exposition. I really appreciate your expertise on the field.

  13. BY

    What other assets will increase in value during inflation?

  14. BY

    So buy real estate to curb inflation!!

  15. Jennifer W

    You were right about the inflation 🙂 I am putting $10k into Series I Savings Bonds every year now and never take it out.. sure beats the bank and I dont' trust stock market right now due to high CAPE (Shiller PE Ratio), stock buy backs, and the fact the fed will have to keep hiking up interest rates.

  16. LibertyChive

    Watching this in March 2022. Inflation 7.9% and risiing, and two weeks into war in Ukraine.

  17. chad pettitt

    This was prophetic. Nice call Ken. This is why I read and watch all of your content.

  18. Shop Steward

    When inflation is high the housing market take a dive correct?..so if I buy during inflation time let say a 300k at 6%-7% something that at current value is at 400k-500k at 2%-3%..would it make sense to buy during inflation then the loan rate can be refinance..
    But I can't refinance the value?

  19. Kurogamo

    The interest rate on gov debt is extremely low I think. Like a lot of it is <1%

  20. Vincent Foggia

    So should someone who is living on a budget and putting all excess cash towards their student debt before investing in RE stop doing that. Should they just make the minimum payment on loan and invest in real estate to hedge inflation, create cash flow, benefit from the tax advantages, all while allowing their new and old debt erode over time?

  21. oldeenglish64

    i think one key point that im not hearing is that wages HAVE to increase in order for this to all happen right. And if it doesnt, which is hasnt in recent years, then it doesnt help at all.. RIGHT?

  22. Tanner Thomas

    One of the most valuable videos I’ve watched on YT. Extremely well put together.

U.S. National Debt

The current U.S. national debt:
$35,951,601,173,936

Source

ben stein recessions & depressions

Retirement Age Calculator

  Original Size