REAL ESTATE IN THE NAPA VALLEY
How to beat
I
BURT POLSON burt@acresinfo.com
find many things in our world challenging to comprehend, the number of galaxies in our universe, the wonder of the microscopic world of a cell, and the many factors balancing our nation’s economy. I am not an economist, professor, or politician, but an investor trying to understand the economy so I can be ahead of the curve. There appear to be many factors seemingly out of my control in today’s economy, BURT creating our tumultuous ride. POLSON Provocative as it is, in my opinion, much of what we are experiencing today in our Lastly, rising wages and the additional Private equity real estate funds can be an economy is new territory strewn with fear, policies and regulations placed on businesses easy way to acquire a large investment propuncertainty, and doubt. usually result in increased costs. erty with others through a fund offered by a management company. WHAT CAUSES INFLATION? WHAT CAN WE DO? The management company handles all Six factors lead to inflation. In my opinThe best way to beat inflation is to invest facets of the investment while you receive a ion, we are experiencing all six to some in assets with inherent value. I prefer real quarterly check. degree brought on by the government’s estate, gold, silver, and cryptocurrency. Your home is not an investment, but by response to the pandemic, labor shortages, Real estate to consider would be residential locking in your interest rate, you gain the supply trade blockages, housing, and mon- and commercial investment properties, pri- same advantage as with an investment, plus etary policy. vate equity real estate funds, short-term loans the home is increasing in value. However, it The six textbook causes of inflation are, secured by real estate, and, yes, even a home. can be argued that an increase in home value first, demand-pull inflation, when demand Gold and silver are a store of value in when triggered by inflation, is not an increase for consumer goods and services out-paces themselves and a hedge against inflation. Both in true value. supply, causing an upward trend in prices. are good to include in your portfolio. Burt M. Polson is the CEO of ACRESinfo. Next is cost-push inflation, when a supCryptocurrency is beyond the scope of com, a commercial real estate brokerage comply shortage combined with demand allows this article. The coin or token is either a store pany, and CEO of StoneMarkerInvestments. producers to raise prices. Wages and mate- of value, or you are buying into a company’s com, a private equity real estate fund. Call him rials cost increases are often passed down to use-case of a token, which can be lucrative at (707) 254-8000 or email burt@acresinfo. the consumer. though volatile. com and burt@stonemarkerinvestments.com. Third, increasing the money supply Investment real estate such as a single-famwithout increasing production results in ily home or a commercial building usually Burt M. Polson is the CEO of ACRESinfo. too many dollars chasing too few products. has a method to keep up with inflation in the com, a commercial real estate brokerage Fourth, the continual devaluation of the form of annual rent increases. company, and CEO of StoneMarkerIndollar, best represented by the major stock Additionally, locking in your financing vestments.com, a private equity real estate market indicators reaching an all-time high with a fixed-rate loan allows the borrowed fund. Call him at (707) 254-8000 or email again this week, resulting in a significant dollars to be worth more as inflation grows. burt@acresinfo.com and burt@stoneovervaluation. Plus, the property in itself increases in value. markerinvestments.com.
INFLATION
12 | DISTINCTIVE PROPERTIES
November 2021
