Why Real Estate is Your Best Bet Against Inflation

Hello, forward-thinking investor!

If you’re an accredited investor worried about inflation eating away at your wealth, real estate might be your secret weapon. At Lokosee Capital, we’re fired up about how distressed multi-family properties and mortgage notes can shield your portfolio from rising costs. But it’s not a strategy everyone nails. Let’s explore why real estate is a powerful inflation hedge, how it delivers wealth protection, and why it takes expertise to get it right—all in a quick 5-minute read.

Why Real Estate Beats Inflation

Inflation, running at 2.4% in 2024 - 2025 per Bureau of Labor and Statistics, erodes the value of cash and fixed-income investments. Real estate, however, thrives in inflationary times. Properties like duplexes or small apartment buildings generate rising rental income, and their values often climb with inflation, unlike stocks or bonds that can falter. By investing in assets with strong cash flow, you can protect and grow your wealth, even as prices for goods and services creep up.

Why Isn’t Everyone Winning at This?

Real estate’s inflation-fighting power sounds like a home run, but it demands market foresight, strategic asset picks, and deal-making prowess. Here’s why it’s not a cinch:

Market Foresight: Choosing markets with rising rents requires deep local knowledge. Not every area keeps pace with inflation.

 Strategic Asset Picks: High-cash-flow properties, like multi-family units, outperform in inflationary times, but picking winners takes expertise. 

 Deal-Making Prowess: Securing properties at the right price ensures room for growth. Without off-market networks or negotiation skills, you risk overpaying.

At Lokosee Capital: our team leverages these skills to target inflation-resilient assets in our 506(c) fund, safeguarding wealth for our investors.

How Real Estate Protects Wealth

Here’s why real estate shines as an inflation hedge:

Rising Rents: Multi-family properties, like triplexes, see rent increases, boosting cash flow as inflation rises.

 Appreciating Property Values: Real estate often tracks or outpaces inflation, with values rising annually in recovering markets like the Sun Belt.

 Fixed-Rate Debt Advantage: Locking in low-rate mortgages means inflation reduces the real cost of debt over time, amplifying returns.

 Tax Benefits: Strategies like cost segregation, when applicable, enhance cash flow by lowering taxable income.

 Our fund targets 12-15% annual returns, and when inflation-hedging strategies fit, we use them to protect wealth. Not every investment in our fund leverages all tax strategies—consult your financial advisor to confirm eligibility.

Why a Fund Makes It Easier

Beating inflation with real estate solo is tough—sourcing high-cash-flow assets, navigating markets, and securing deals require expertise. Our 506(c) fund at Lokosee Capital simplifies it, using our industry connections to target undervalued multi-family properties and mortgage notes, delivering passive returns without the complexity.

Things to Keep in Mind

Real estate isn’t risk-free—market shifts, vacancies, or repair costs can impact gains. Thorough research is critical. Accredited investors must verify their status (e.g., tax returns or CPA letter), but it’s a quick step.

Disclaimer: This content is for informational purposes only. Consult your financial advisor or tax professional to ensure this investment aligns with your goals.

Ready to Protect Your Wealth?

Real estate can outpace inflation, but it takes expertise to unlock its potential. At Lokosee Capital, we’re dedicated to using inflation-hedging strategies, when appropriate, to grow wealth.

Curious about how our fund safeguards your portfolio? Contact Lynn Horner, VP of Marketing, at 407-490-1034

Email Lynn@lokoseecapital.com

Or visit www.lokoseecapital.com.

Let’s talk about growing your wealth the smart way!