526: BiggerNews November: Congress's $40B Sucker Punch to Real Estate Investors (See Update!)
[NOTE: Since this episode was recorded, some events have changed. We have updated the intro to the episode and the lead-in to our conversation with Jeff Watson to reflect those developments]
Inflation is big, scary, and in the news. With it comes the fear of sky-high home values, consumer goods falling in short supply, and cash positions becoming worthless overnight. With high inflation at our doorstep, we need to be smarter (and faster) when it comes to investing. Thankfully, for BiggerPockets listeners, one of the strongest hedges against inflation is real estate!
David Greene and Dave Meyer are back on another episode of BiggerNews to discuss not only the cause of inflation but how to protect yourself against it in this hyper-inflationary environment we find ourselves in. Both David and Dave harp on how important it is to start investing as soon as you can, taking advantage of low-interest rates and locked-in leverage that bank financing provides.
Jeff Watson, attorney and self-directed IRA expert, joins the Dave duo to talk about the proposed “Build Back Better Bill” and its consequences for real estate investors - which Jeff calls a “nightmare” for those who want to raise private money for deals. As noted at the top of this description – in the time since this episode was recorded, the sections of the bill affecting Self-Directed IRAs have been removed. We've added audio to the episode explaining those developments; we are keeping the content because it offers a glimpse into an issue that may crop up again on Capitol Hill in the future.
In This Episode We Cover:
What is inflation and how did America become an inflationary environment?
The main causes of inflation and whether or not it will affect you
Using debt to lock in low-interest-rate loans while rents continue to rise
The “Build Back Better Bill” and its consequences for all real estate investors
How this new bill would have potentially hurt ‘average joe’ investors while propping up hedge funds
Steps you can take to protect your assets
And So Much More!
Links from the Show
Brian Beaulieu of ITR Economics
Protecting IRA Investment Choice (Jeff's Document)
Summary of Changes Proposed by House Reconciliation “Build Back Better” Bill (Jeff's Document)
Check the full show notes here: http://biggerpockets.com/show526
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