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- Cornerstone CIG | Aug 2024 Edition
Cornerstone CIG | Aug 2024 Edition
Business Update
As we push towards a closing date in September, things continue to progress well with the acquisition of The Crossroads at Cedarwood Apartments. We are searching for the next investment opportunity as well.
Our primary focus remains on multifamily, but we are also considering flex industrial and triple net properties. We believe this asset class also offers strong potential to provide our investors with stable and attractive cash flows.
Market Update
In July, the Federal Reserve's preferred inflation gauge remained steady at 2.5%, signaling that inflation is gradually cooling. This keeps the Fed on track for a potential interest rate cut in September, with the decision likely influenced by the upcoming jobs report. Consumer spending stayed strong, though partly due to a temporary rise in vehicle sales. The cooling inflation trend is positive for the economy and could impact the political landscape ahead of the presidential election. Read more.
Informed Investing - Why Inflation Benefits Real Estate Investors
While inflation has been easing recently, it's undeniable that we've experienced significant inflationary pressure over the past several years. With the added uncertainty of an election year, the economic outlook remains unpredictable.
But did you know that inflation can actually be a powerful tool for building wealth through real estate? Here's how you can turn inflation into your ally instead of seeing it as your enemy:
Property Appreciation: Inflation drives up property values, boosting your overall equity.
Higher Rental Income: As prices rise, so do rents, increasing your cash flow.
Inflation-Induced Debt Destruction (IIDD): With a fixed rate loan, inflation reduces the real value of your debt, meaning you pay it off with “cheaper” dollars while your property and income grow.
For a much more in depth look into how IIDD works, check out my recent blog post here.
“Real estate is one of the few assets that react proportionately to inflation. As the cost of living increases, so does the income generated from real estate.”
Conrad’s Picks: Mindset & Mastery
I want to share some of my favorite reads and resources to help you level up your mindset and skills. Whether it's a great book, an insightful video, or something else, I hope these picks help you on your journey!
“Secrets of the Millionaire Mind” by T. Harv Eker reveals the key mindset shifts and wealth-building strategies used by successful millionaires to transform their financial reality and achieve lasting prosperity.
Check out this interesting YouTube video on body language:
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To your success,
Conrad Boyd