To understand where the potential landmines are and where to dig for gold, we need to understand the true path of wealth. What have the rich always been doing? What have they been doing specifically during this COVID-19 pandemic? Where have they adjusted and where are they putting their money right now? Well, GO DO THAT 💰🧐!
How The Rich Always Make Money
Money is not Wealth. Cash is not King. Cash money devaluates 😖 meaning it heavily loses buying power. Moreover, cash money in the bank is being first hit with negative rates in 2020 (you pay the bank to hold your money 😵). Then it takes another hit from inflation lowering it’s buying power (if the same coffee costs now $2 instead of $1 a few months ago, you now pay twice as much to buy the same coffee) and if you have anything left you can now pay (after already having paid income tax) a second round on wealth tax 😒. Remember: Inflation-corrected recurrent cash-flow is the only true queen 👑 to building lasting wealth!
As we have stated over and over again the wealthy buy assets (it’s all explained here). Assets put money in your pocket and Liabilities take money out of your pocket. The rich also rarely ever pay tax (follow our “keep your money” - no tax trail here).
What Have The Rich Been Up To During The Pandemic?
Like anyone else out there the rich parked their jets in the hangar, went inside their exclusive homes to stay safe 😷 and moved online. Transitioning into the digital and virtual world is more important now than ever before. The real estate world is doing “virtually” everything & everything “virtually” from 3D tours, zoom walkthroughs, virtual presentations to video previews as a listing service. Some banks are even doing drive-by appraisals with properties that are already under contract. Real estate’s new “virtual reality” is the “New Normal”! It’s never been more obvious how much home matters which make real estate investors even happier 🤗🔥. Home is where we eat, sleep, play, work, homeschool, and run our businesses in 2020. Private outdoor spaces like patios, decks, and gardens are more a necessity than a luxury for safety & community nowadays.
On one hand, the stock market seems to has gone bananas plunging and peaking like a rollercoaster. Oil has gone negative 😵, meaning oil barons are now paying buyers to take their crude barrels from their hands, crazy stuff. On a global scale, all businesses, hotels, restaurants, shops, malls have been shut down simultaneously, and even now entering summer traveling is still very much restricted. We can obviously see that mostly the essential businesses are staying afloat and that online business is the big thriving force during the 2020 COVID-19 pandemic.
On the other hand, we absolutely can, beyond any shadow of a doubt, all hands down, conclude that of all the asset classes real estate is surely here to stay and prosper 🥳.
What the rich have primarily been doing is cashing out in preparation for the lurking depression (how to cash out and prepare-> here) and position themselves in the best possible disposition to act (meaning the best position to acquire assets on a sale/bargain). Which many have started doing during the lockdown…
Buy A Business With $0 Down During COVID-19
Well, you can absolutely start doing the same. You can even use the SBA (7a) CARES ACT loan program for that purpose. It's a historical opportunity for you a buyer to obtain acquisition loans with the first 6 months of principal and interest paid by the SBA!
Where Have The Rich Adjusted And Where Are They Putting Their Money Right Now?
So you know they have adjusted because you can hear about all of the bankruptcies daily on the news. There is one “secret🤫” that we need to share with you in advance though so you can see all these events in the right perspective 😉.
There is a BIG difference between the real heartbreaking bankruptcy of the poor | middle-class mom-pop-shop and the so-called “filing bankruptcy chapter 11” for the rich multi-billion businesses.
Bankruptcy for small owner-operated businesses actually means financial ruination with usually a devastating personal credit effect. Filing for “chapter 11 bankruptcy” for big bug companies actually means they can remain operational, there are no time limits, and their debts can be discharged as often as they file for bankruptcy. Furthermore, they are not forced to sell assets for compensations and they can pretty much lay off personnel at will and file for bankruptcy as an attempt to avoid paying outstanding wages.
All the headlines of big businesses filing for bankruptcy actually mean that they are “cashing out”, keeping all of their assets tax-free and moving away from the affected business categories and investing their assets/money into the new, emerging, or adjusted more profitable and growing business categories 🧐.