As a real estate investor it’s important to know the basics.
You need to have a long term goal for your real estate business. You must decide on some strategies. And you need to figure out what tactics to use.
For example, “I want to create $10,000 a month in cash flow so that I can focus on my true passion and I’m using a combination of single family homes and commercial real estate with long term leases in growing communities to do it.”
Having a blueprint for your business is key.
But there’s something that’s often missed.
And it’s a big deal.
Too many investors ignore anything outside the world of real estate.
In the past we’ve shared how important it is to know how the economy works. How things like interest rates and inflation can monkey with you assets.
Why it’s important to understand the impact of changes to banks overnight lending rates.
And there’s something else you should know.
You must know how currencies work.
Well if you’re investing in Canada but plan to retire in Tuscany, Italy it’s a big deal.
Let’s say you invest in some nice cash flowing Canadian real estate. It goes up in value 50% over 10 years.
What if the Canadian dollar loses value against the Euro over that same time period.
You think you’ve made 50% on your money and you’re planning to use that cash to help you buy that dream villa in Tuscany.
But when you go to convert those Canadian loonies to fancy dancy Euros you realize that you’re losing out because the Canadian dollar has lost value against the Euro.
You’re $170,000 Canadian dollars no longer gets you the $100,000 Euros.
It only gets you $75,000 Euros.
Not good news for your Tuscan getaway.
So currency is a big deal.
The example above isn’t any kind of forecast, just an example.
And to be clear the Canadian dollar is likely in much better shape than the U.S. Dollar right now.
But there are ways to make currency forecasts for yourself if you know what to look for.
And we need to start at the beginning.
It’s really important for you to know what some old guys did in 1944.
We believe it’s impossible to have an understanding of how the economy works without knowing what these “gentleman” did in 1944.
Ready for it?
Great, let’s go…