Category: Real Estate Investment

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Why Your Investment is Sh!t: Navigating the Quirky World of Modern Investing | Real Estate and Stocks Vs Bitcoin

💛 Best Investments During Stagflation ✨

REAL ESTATE NEWS (Los Angeles, CA) — In the ever-evolving landscape of investment, the term “smart money” might seem like a misnomer. From Wall Street to Main Street, investors are scratching their heads, wondering where the next gold mine lies. Amidst this confusion, Raoul Pal, a wealthy hedge fund investor, made a bold statement: All investments are “dumb” compared to Bitcoin. Let’s unpack this.

Bitcoin: The Digital Gold Rush

Pal’s stance on Bitcoin is nothing short of revolutionary. In his view, traditional investments like stocks, bonds, and real estate pale in comparison to the digital currency. This sentiment resonates with many, especially considering Bitcoin’s meteoric rise. But is it really the financial panacea Pal makes it out to be?

Traditional Investments: Not So Golden Anymore?

Take, for example, the curious case of Downtown Los Angeles (DTLA) lofts. While most loft condos have doubled or tripled, some of these properties, once the epitome of urban chic, have stagnated in value since 2009. This stagnation is a stark reminder that traditional investment vehicles are not infallible. But does this mean they’re “dumb”? Well, 2023 certainly has been plagued by higher interest rates, a bit of tarnishing for some housing markets and reports of impending malaise.

The Risk and Reward Balancing Act

While Bitcoin offers the allure of high returns, it’s a rollercoaster ride of volatility. Traditional investments, on the other hand, offer stability and predictability. It’s a classic case of risk versus reward. Bitcoin investments more than doubled in 2023. Bitcoin has gone up more than 5 million percent in the last 14 years. Bitcoin has always made gains when looking at three year periods. After studying Bitcoin’s short-term, medium and long term gains, many can now clearly see Bitcoin as the proven safe haven, while viewing all other investments as more risky.

Diversification: The Key to Smart Investing?

Perhaps the real wisdom lies in diversification. A portfolio that balances the excitement of Bitcoin with the steadiness of traditional assets might be the smartest play of all! Raoul Pal sees this a a given, already proven — yet still early enough to see a lion’s share of gains. Raoul is now informing the early birds about their next big, juicy worm, A.I. Artificial Intelligence.

Comparison

  • Return on Investment (ROI): Bitcoin has provided astronomical returns for those who invested early and held onto their assets. However, these returns are not guaranteed to continue and come with high risk. In contrast, real estate has offered more stable, albeit generally lower, returns over the same period.
  • Risk Profile: Real estate is typically considered a lower-risk investment compared to Bitcoin. The extreme volatility of Bitcoin makes it a high-risk investment.
  • Liquidity: Bitcoin is more liquid than real estate. You can buy and sell Bitcoin quickly, whereas selling real estate can take months.
  • Market Accessibility: Bitcoin is more accessible to the average person due to its lower entry cost compared to real estate, especially in high-value markets.
  • Impact of Economic Cycles: Real estate is more directly tied to local and global economic conditions, whereas Bitcoin often behaves independently of traditional economic cycles.

While Bitcoin has offered potentially higher returns since 2010, it comes with a much higher risk and volatility compared to real estate, according to the mainstream media. Real estate investments have provided among the best stable growth and the additional benefit of rental income over the last 100 years, although the returns are generally lower than those seen with many Bitcoin investments. The choice between the two depends on an individual’s risk tolerance, investment goals, and market knowledge. While Bitcoin is clearly the king of all investments since 2010, you still cannot live in a Bitcoin. For most people, BTC must be converted into cash, real estate or something else popularly tangible in order to gain a sense of real-world currency.

How Bitcoin became King of All Investments

The rise of Bitcoin as a prominent investment vehicle can be attributed to several factors, particularly in contrast to traditional fiat currencies like the U.S. Dollar. Here’s a breakdown of how Bitcoin has gained this status:

1. Decentralization and Limited Supply

  • Bitcoin’s Limited Supply: Bitcoin is designed with a capped supply of 21 million coins. This scarcity is built into its protocol, mimicking the scarcity of precious metals like gold. In contrast, fiat currencies can be printed in unlimited quantities by governments, leading to potential inflation.
  • Decentralization: Bitcoin operates on a decentralized network, meaning it’s not controlled by any single entity or government. This decentralization is appealing to those who distrust centralized financial systems and government control over money.

2. Inflation and the Devaluation of Fiat Currencies

  • Historical Devaluation of the U.S. Dollar: Since its inception in 1792, the U.S. Dollar has lost a significant amount of its purchasing power. This is mainly due to inflation and changes in monetary policy. The claim that a dollar today is only worth about 3% of its 1792 value highlights the impact of long-term inflation.
  • Bitcoin as a Hedge Against Inflation: Many investors view Bitcoin as a hedge against inflation. Its pre-programmed rising value (through events like ‘halving’) and limited supply contrast sharply with the inflationary nature of traditional currencies.

3. Technological Innovation and Digital Transformation

  • Blockchain Technology: Bitcoin’s underlying technology, blockchain, is seen as revolutionary, providing security, transparency, and efficiency. This technological edge makes it a compelling investment compared to traditional assets.
  • Digital Era and Internet of Money: In an increasingly digital world, Bitcoin represents a shift towards digital assets, fitting well into the narrative of the ‘Internet of Money’.
  • NFT: From McDonalds to Nike to the NBA, crypto blockchain NFT Non-Fungible Tokens are turning into mainstream investments — another exciting, new and proven tech investment. Entar® is in final development stages, with recent limited beta release of the Entar® Real Estate NFT.

4. Market Sentiment and Speculation

  • Speculative Investment: A significant part of Bitcoin’s value is driven by investor speculation. As more people buy into Bitcoin, expecting its value to rise, this demand can drive up prices.
  • Media and Public Perception: Media coverage and public perception play a crucial role in Bitcoin’s popularity. As more people become aware of and understand Bitcoin, its adoption and investment appeal increase.

👑 All Hail the King 🏆

While ₿itcoin has been hailed by many as the “king of all investments,” it’s important to note that this comes with high volatility and risk. Its value can be extremely unpredictable, and while some have seen significant returns, others have faced losses because they bought high, then sold low, or were duped by bad exchanges or fraudsters. The comparison to the U.S. Dollar’s historical devaluation provides a stark contrast between traditional and digital currencies, highlighting Bitcoin’s appeal in a modern financial context. However, like any investment, it’s essential to approach Bitcoin with a balanced understanding of its risks and rewards.

Compare that to a Bitcoin, which was worth less than one cent 14 years ago, and is worth more than $37,000 today. Comparing the historical value of the U.S. Dollar and Bitcoin offers a striking illustration of the changing landscape of value and investment over time.

U.S. Dollar Since 1792

  • Long-Term Devaluation: The value of the U.S. Dollar has steadily decreased since its inception in 1792, primarily due to inflation. Over the centuries, the purchasing power of the dollar has significantly eroded. This gradual devaluation reflects the impact of various economic policies, including the departure from the gold standard and the Federal Reserve’s monetary policy.
  • Current Value: As of now, the purchasing power of the dollar is only a fraction of what it was in 1792. This decline has been a slow, steady process influenced by economic growth, inflation, and changes in fiscal policy.

Bitcoin Since 2009

  • Rapid Appreciation: Bitcoin, created in 2009, was initially worth less than one cent. Over the past 14 years, its value has experienced dramatic fluctuations, reaching peaks that have made it one of the most lucrative investments for some early adopters.
  • Current Value: As of now, Bitcoin’s value is more than $37,000, a remarkable increase from its initial worth. This increase is partly due to its capped supply (only 21 million Bitcoins will ever exist), growing acceptance, and increasing interest from both retail and institutional investors.

Comparison

  • Growth Rate: The growth rate of Bitcoin is unprecedented in the history of modern investments, especially when compared to the slow and steady devaluation of the U.S. Dollar.
  • Nature of Value: The U.S. Dollar’s value is backed by the government and is influenced by economic policies and global trust in the U.S. economy. Bitcoin’s value, on the other hand, is driven by market demand, scarcity, and its perceived utility as a digital asset and store of value.
  • Volatility: Bitcoin is known for its high volatility, with rapid price changes. In contrast, the value of the U.S. Dollar, while declining in the long term, does so in a relatively stable and predictable manner.
  • Risk and Return: Bitcoin represents a high-risk, high-return investment, suitable for investors who can tolerate significant price swings. The U.S. Dollar, while stable, does not offer the same potential for rapid appreciation in value.

Compare

The comparison between the U.S. Dollar and Bitcoin showcases the evolution of what constitutes value and investment. While the U.S. Dollar has been a symbol of stability but slow devaluation, Bitcoin has emerged as a volatile yet potentially high-return digital asset. This contrast highlights the diversification in investment strategies and preferences in the 21st century.

Smart or Dumb?

So, is your investment “dumb”? Not necessarily. It all depends on your risk appetite, investment goals, and the ever-changing market dynamics. Whether it’s Bitcoin or DTLA lofts, the investment world is filled with opportunities and pitfalls. The key is to navigate it with a balanced, informed perspective.

Remember, the world of investment is as unpredictable as it is exciting. Whether you’re chasing digital dragons or betting on brick-and-mortar, the journey is as important as the destination. Stay savvy, investors!

What investments are going best right now while economic stagnation persists and consumer price inflation remains high? Some real estate transactions have completed flawlessly this year. We’ve seen one of our $1+ million home buyers get handily outbid even though he offered $50,000 above asking price on a San Pedro beach home. The rare, desirable properties are still flying off the shelves in today’s real estate market.

Get a free list of the best investments during time of stagflation. Fill out the online form:

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

  Lofts For Sale     Map Homes For Sale Los Angeles

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Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Broker DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Text and photos created or modified by artificial intelligence. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.

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The Financial Struggle is Real, but so is the Solution: Real Estate Investing

REAL ESTATE NEWS (Los Angeles, CA) — Do you ever catch yourself wondering why a significant chunk of the world’s population is perpetually broke, barely making ends meet despite living in an era abounding with opportunities? Does the problem seem to be getting worse lately? It’s a troubling yet riveting question, which when delved into, unravels an array of factors contributing to this phenomenon. In this ultimately inspiring blog post, we invite you to “Join us!” and explore this perplexing issue and discover a path to financial solvency through real estate investment.

Let’s start with a sweeping glance over the backdrop of our economic reality. The events of the recent past have reshaped the global economic landscape in ways that none of us could have predicted. The exaggerated, tyrannical COVID-19 pandemic plunged the world into a state of chaos, triggering the Greater Depression of the 2020s. As businesses shuttered and unemployment soared, the world witnessed an unprecedented stock market crash, the worst drop in employment in history and the largest GDP drop in history — largely ignored or covered up by the mainstream fake news.

In response, governments attempted to soothe or hide the crisis by distributing stimulus checks, which acted more like a hasty band-aid on a gaping wound. These extremely costly measures fell short of their mark. Inflation skyrocketed, swiftly eroding the value of the “free money.” The impact was hardest on the working class, their real purchasing power diminishing rapidly in the face of soaring prices. The billionaires, monopolists and politicians made fortunes, at our expense. Today, we’re seeing the real effects of the biggest economic mistakes in history — U.S. money supply Is doing something not seen since the Great Depression (msn.com). The economy is worse than many think, yet the opportunities are actually growing for those in the know.

Now, let’s redirect our attention to the question, how can one navigate these treacherous waters and not merely stay afloat but, indeed, sail toward the horizon of prosperity? The solution lies in the strategic, intelligent, and persistent pursuit of real estate investment.

“Why real estate?” you may ask. Let’s unravel the power of this asset class and how it can serve as a bulwark against economic turmoil and a beacon guiding you toward financial independence.

First and foremost, real estate is a tangible asset. Unlike stocks or bonds that are susceptible to the volatile and often fickle nature of markets, real estate provides a solid investment, a physical entity that serves a basic human need – shelter. This tangibility imbues real estate with a degree of stability and security that other forms of investment often lack.

Secondly, real estate is a phenomenal wealth creation tool due to its potential for capital appreciation and rental income. Over time, property values tend to increase, providing investors with a steady, long-term return on investment. Simultaneously, rental income provides a regular cash flow, creating a steady income stream that can be particularly valuable during uncertain times.

Next, owning real estate offers an attractive tax advantage. Government policies often provide numerous tax benefits for real estate investors, including deductions on mortgage interest, property taxes, operating expenses, depreciation, and even tax credits for certain types of properties. These tax incentives can result in significant savings, thereby increasing your overall return.

Additionally, real estate is a hedge against inflation. Unlike other assets, where the value might erode with rising inflation, real estate often sees an increase in value. As living costs go up, so too does the value of property and rental income, providing an effective shield against the corrosive effects of inflation. As an asset that can generate income, real estate also provides protections against economic stagnation. It protects us from the worst-case scenario: stagflation.

Real estate provides the potential for diversification. Every investor knows the wisdom of not putting all their eggs in one basket. Real estate can be an excellent way to diversify your investment portfolio, thus spreading risk.

However, as alluring as these benefits are, real estate investing is not a path to be tread lightly. It requires diligence, education, and a willingness to take calculated risks. Research thoroughly before making any purchase – understand the market dynamics, scrutinize the location, and consider the condition and potential of the property.

Indeed, real estate investing is not a “get rich quick” scheme. It’s a journey requiring patience, resilience, and strategy. It demands the investor to be proactive, to continuously learn and adapt. But those who navigate this path intelligently and persistently will find it leads to a destination of financial security and independence.

“I don’t have enough money to buy a home,” you say? Not true. We all have access to unlimited resources — we just need to learn how to identify and unlock them. Home prices to high? Also not true. In fact, there are more motivated sellers willing to bargain today than there were a few years ago. If you don’t feel that you have money for a down payment, use your resources to acquire it. Stop spending money on dining and entertainment. Spend your time and money to raise the down payment that you need. Pay down credit cards so that you have sufficient cash, along with a low debt-to-income ratio required to buy a home. Those who keyed in on opportunities 14 years ago, invested a few bucks (instead of wasting on Starbucks) now have millions of dollars. This concept is even more powerful today. Millions are well-off, making money by buying the big dips in Bitcoin, then selling the big run-ups. If you have motivation, you don’t need to use your own money. Use other people’s money to make investments — friends, family, business partners, investors, government programs. Real estate investing is the most reliable business plan in history. Millions are suddenly making a killing on anything AI Artificial Intelligence right now! Buy some properties with little or no money down. Buy other properties using seller carry financing. There are many, many more ways to make real estate investments happen. Now. more than ever before, the world is your oyster, and the universe has your back.

So, we urge you to “Join us!” on this journey. Empower yourself with the knowledge and courage to step into the realm of real estate investing. Take control of your financial destiny, break free from the chains of living paycheck to paycheck, and carve a path to prosperity. Remember, in the landscape of wealth creation, real estate stands as a towering beacon. So, harness its power and light the way to your financial success. We’re here to help you. Get on our radar.

Get a free list of the top ten investments during stagflation. Fill out the online form:

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

  Lofts For Sale     Map Homes For Sale Los Angeles

SEARCH LOFTS FOR SALE Affordable | Popular | Luxury
Browse by   Building   |   Neighborhood   |   Size   |   Bedrooms   |   Pets   |   Parking

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Broker DRE 01889449. This is not an offer to buy or sell securities. All investments involve risk, including possible loss of principal. All information provided is deemed reliable but is not guaranteed and should be independently verified.  Text and photos created or modified by artificial intelligence. This does not constitute financial advice. For financial advice, consult a certified financial advisor.  We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com  Licensed in California.  Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.