Inflation And Collateral In RealEstateInvestments
Rani Tamari – #EntrepreneurOfTheWeek – Wednesday, Post 4
Hi friends,
This is Rani Tamari, and it’s already Wednesday, 15/10/25.
Today’s topic:
#Inflation and Collateral in #RealEstateInvestments
True Inflation and How to Protect Yourself
I started taking the bus at age 10.
In 1987, the city fare was 0.70 NIS.
Today, it’s 8 NIS.
If we calculate compound interest, we get an average annual inflation of 6.5% from 1987 to today.
But according to Bank of Israel, the average inflation for the same period was only 4.8%.
That’s a huge difference!
I believe all governments try to hide the real inflation from citizens.
In the U.S., from 1987–2025, the official average inflation is 2.8%, but if I measure prices myself, it comes out to 3%.
History of U.S. Inflation
How to Protect Your Wealth from Inflation – Real Estate or Stock Market?
The best way to protect your wealth from inflation is leveraged real estate.
As I explained in Post 3, the American mortgage is not indexed to inflation, but rent increases with inflation.
During inflationary periods, real estate investors earn more than stock market investors, thanks to leverage and the American mortgage.
I’m not sure this applies in Israel; I specialize in the U.S. only.
Want to learn more about real inflation?
In the U.S., it’s easy to find information; in Israel, it’s hard.
Lucky I remember how much a bus pass cost in 1987.
More reading on true inflation in the U.S.:
Collateral in Partnerships / Investment Funds – LP
Why it’s better to buy a property than to buy a paper share:
There’s a huge difference between buying a home yourself, so your collateral is the house, and buying shares in a small Israeli partnership.
I know many such investment funds.
Your share is just a piece of paper, which is your only collateral.
You cannot sell your shares. Unlike public stocks, which are tradable, you’re not consulted on company decisions even once a quarter.
If you want to sleep well and enjoy U.S. real estate, I recommend owning the property yourself.
This is the best collateral.
I personally invested in a partnership:
I have shares, they don’t ask me anything
I cannot sell
I have no idea when investors will be repaid, with or without interest
Learn from me: buy real estate yourself.
It’s not complicated.
Don’t gamble $80,000 on one person.
Use a capital partner.
With a capital partner, you’re not gambling on the lender—they just lend.
Your collateral is the property itself, registered in your name.
You can rent it, mortgage it, or sell it.
All decisions are yours, and many people will gladly give advice.
You can find them in forums or local real estate agents online in two minutes.
Next Up
Tomorrow, Post 5, I’ll write about what to do after the property is in your name—how to become a good homeowner who sleeps well at night.
Happy holidays!
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