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Rob Bergeron
  • Real Estate Agent
  • Louisville, KY
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Open Editorial I wrote for the Courier Journal

Rob Bergeron
  • Real Estate Agent
  • Louisville, KY
Posted Dec 30 2021, 09:53

It feels like everything around us has become just a little more difficult these days. Packages are taking longer to arrive delaying progress, money isn’t going as far as it used to, and our time is becoming “our time”, far less every day. There has to be a solution out there to help us not only weather the storm, but to thrive. Doesn’t it seem collectively like less people are thriving? I suggest everyone take some time to look into a few outlets to elevate their lives.

My first suggestion is to look into home ownership. A majority of residual wealth is passed on through real estate. Now a days people are using the house hacking method (where you live in one unit or one part of the home and Airbnb or rent out the additional units). This is a fantastic tool to knock out your largest expense in your budget.

Another phe-nomenal option is the BRRRR method! BRRRR stands for Buy, Renovate, Rent, Refinance, and Repeat! This allows you to recycle the same money over and over again to create new assets. Louisville had 12% appreciation. If you owned a $100,000 home, you’d have gained $12,000 in equity. When you rent, someone else is gaining that equity! Now, I understand having a rental that generates $200 a month might not seem like a lot, but there are other benefits! 1. Debt paydown 2. Appreciation 3. Cashflow 4. Tax Breaks (claiming deprecation on taxes due to mechanicals/roof/etc getting older). All of these things can add up quickly!

I know these two things can seem like a lot! I’d recommend joining the local nonprofit KREIA which stands for Kentuckiana Real Estate Investors Association. The total cost is $120, you’ll learn far more here from great people than you would paying for the programs you hear on the radio that cost thousands of dollars. I’m on the board and would be thrilled to introduce you people that are doing what you’d like to learn at a high level.

One last thing that I’d recommend looking into is Bitcoin. Currently, we have 6.8% inflation. That means if you get an annual raise of 3% from your employer, you’re actually losing 3.8% of the buying power you had last year. It’s no wonder people are questioning why they can’t afford to do the things they usually do on their fixed budget. The Baby Boomers that have retired are starting to have to come up with creative ways to afford their lifestyles as well. Bitcoin can help us protect our quality of living. There will only ever be $21,000,000 bitcoins ever released. Think about that relative to our government that has printed $13 trillion dollars since the covid pandemic began. The value of money has gone down significantly! Bitcoin, which has some risks in its own regard, will become the scarcest resource to ever exist. Buy bitcoin and have your money appreciate or let your money sit in the bank and lose its buying power each day. Definitely do your own research, but I am a believer and learning more each day.

In closing real estate is the ultimate tool to generational wealth and handling inflation. I know it can seem daunting, but the process is simple, not easy, but simple. Take some time to checkout Biggerpockets (the largest real estate investing podcast in the world) and our local non for profit KREIA. Look into purchasing Bitcoin, a currency that is increasing in value, relative to the American Dollar that has fallen short since coming off the gold standard. Doing some of these things listed will be a great tool for you to weather financial storms and create generational wealth.

Recently started a facebook group called Louisville Coinage, this is a group to grow together in understanding of cryptocurrencies, blockchain, and NFTs.

Louisville Real Estate Appreciation Statistic: https://www.wdrb.com/news/louisville-area-homes-continue-selling-fast-at-high-prices/article_645dc40a-ebff-11eb-aaf5-37b16c5080a3.html

Inflation statistic: https://www.theguardian.com/business/2021/dec/10/us-inflation-rate-rise-2021-highest-increase-since-1982

Printing Money Statistic: https://www.nasdaq.com/articles/money-printing-and-inflation%3A-covid-cryptocurrencies-and-more

Louisville, Kentucky

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