Worthless Money…

Hey there,

Here's why I invest in multifamily:

Immediately after I graduated from Ohio State in 2019 I left for Brazil to learn how to speak Portuguese. Being able to speak another language had always interested me.

When I arrived in Brazil, $1 = R$4 (Brazilian Real).

Within 1 month of being there, this changed dramatically to $1 = R$5.85

A 46% difference...

The family I was staying with had good jobs, made good money, and were extraordinary people BUT were obviously paid in Brazilian Reals (R$)... All their savings were in R$.

They had lost 46% of their wealth in ~1 month

I asked why they didn't convert their money into Dollars? This would help protect their wealth with a high degree of certainty.

To me it was simple (having been around the markets), but it didn't strike a chord with them...

Or, more likely, what I was saying about currency devaluation is hard to see when your R$10 still says R$10.

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Look at the picture above, the R$10 is from that trip.

Now look at the $20 (US).

It was printed in 1995, the year I was born. That $20 has the same purchasing power today as $9.68 did in the year it was printed.

It's worth less than half the day it was printed.

Finally, look at the $5 printed in 2017. Today it has the purchasing power of only $3.89 in the year it was printed.

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Here's my point. Keeping cash, in any currency, is NOT the less risky thing to do.

I buy multifamily to counteract the fact that my money, if kept in cash, can be stolen out of my pocket by a government simply by them printing money.

And they will indeed print more money. Because, they have to.

Here’s a tiny secret they probably don’t want you to know… The debt to GDP ratio is so high they cannot tax enough to actually reduce/pay it off. Their only option is to print their way out of the problem… which is what the US has done before.

→ Nixon in 1971 - suspended the gold window

→ FDR 1933 - gold confiscation

Here’s the interesting thing, if I own good multifamily assets I actually benefit from everything we talked about above.

Inflation and the expansion of the money supply increases the value of the property while reducing the value of the debt on the property… just like what it’s doing for the government.

It's all a game. How are you going to play it?

Questions always welcome!

Nate & Steven
Rust Belt Capital, LLC

www.rustbeltcapital.com

_Disclosure:
Rust Belt Capital, LLC is not a Registered Investment Advisor. Investing involves risk, including loss of principal. Past performance does not guarantee or indicate future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. While the data we use from third parties is believed to be reliable, we cannot ensure the accuracy or completeness of data provided by investors or other third parties. Rust Belt Capital, LLC does not provide tax advice and does not represent in any manner that any outcomes described herein will result in any particular tax consequence. This is not an offer to buy or sell any security. Offers to sell, or solicitations of offers to buy, any security can only be made through official offering documents that contain important information about investment objectives, risks, fees, and expenses. Prospective investors should consult with a tax, investment, or legal adviser before making any investment decision. Distributions or profitable investments cannot and are not guaranteed. Not intended to be tax advice and should not be solely relied upon to make an investment decision.