Costa Mesa, CA (PressExposure) October 13, 2009 -- Jason Hartman is the founder of Platinum Properties Investor Network, known as the Complete Solution for Real Estate Investors. Jason helps individuals secure their financial future by investing in income-producing properties in 41 markets throughout the US.
Jason spoke at a recent meeting for real estate investors where he explained the advantages of being the borrower rather than the banker during times of increasing inflation. âThe borrower has the greatest advantage during times of inflation,â said Jason. âItâs all about purchasing power and the decreasing real value of the dollar over time.â
Jason explained this concept with a very simple scenario; âLetâs say that you borrow $1,000,000.00 from your banker to purchase income property at todayâs interest rate. From his point of view, the banker could take that same $1 million and buy one million loaves of bread for $1.00 each. If the rate of inflation is 10% one year later the real purchasing power of that $1 million will have decreased by 10% so the banker could only buy 900,000 loaves of bread.â
The investors who attended the meeting had no problem understanding what Jason was saying. Jason summed up by saying, âIn this case, the banker loses purchasing power when he loans you the money; therefore, itâs better to be the borrower because it is your mortgage debt that is losing value over time. If the borrower has made a wise investment then the income property should appreciate while the debt value decreases.
Jason Hartman, Founder of Platinum Properties Investor Network, has over 20 years experience as a real estate professional. He purchased a company in 1997, built it to success and sold part of his interest to Coldwell Banker in 2005. Jason kept his part of the company, specializing in real estate investors. Find more interesting information on Jasonâs blog at http://thejhartmancompany.blogspot.com/
Contact: Jason Hartman 555 Anton; Ste 150 Costa Mesa, CA 92626 714-820-4200 ext. 110 firstname.lastname@example.org
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