"The Real Estate Cycle and its Impact on Your Wealth"
Are You Limiting Your Wealth Potential?
Real estate investors that build wealth using the traditional long term buy and hold approach often overlook one of the most profitable and passive strategies of real estate - timing. Strategically building a portfolio based on timing focuses investment buying decisions in parts of the country with economic strengths support rising real estate values, regardless of the investor's hometown.
Real estate markets cycle based on the fundamental economics of supply and demand. As economic conditions in one city cause real estate values to rise, values in another city remain flat as vacancies climb. A few years' later economic conditions change in both markets, the cities swap place in the cycle and the opposite city now has skyrocketing real estate values. Signil Wealth Consulting Group tracks this cycle and monitors the economics of thousands of real estate markets weekly.
Building a real estate portfolio by timing investment property purchases in cities where economic conditions lead to rising real estate values will increase an investors net worth by millions of dollars. Strategically timing the buy and the sell of real estate investments is called Portfolio Compression and results in exceeding the growth of the traditional 15 year buy and hold plan. Portfolio Compression captures real estate growth in shorter segments of between 1 and 3 years resulting in increased diversification and a more linear equity growth curve. This allows investors to target a wealth building plan through the growth phases of 5 to 6 market cycles rather than limiting growth to any single economic location. Portfolio Compression incorporates a multi-market investment approach focused on:
- Buying investment property in cities where economic conditions support rising real estate values
- Selling investment property as economic conditions change and a city moves through the cycle
- Incorporating the use of strategic releverage plans combined with a 1031 Tax Deferred Exchange
- Identifying next market growth phase opportunities for replacement investments
Supply and demand imbalances create a trendable, trackable and predictable cycle. By monitoring economic fundamentals it is possible for investors to fully implement Portfolio Compression and time predictable cycles. For more information on incorporating the 4-Phases of Portfolio Compression, timing the real estate cycle and, knowing the economic conditions of over 12,000 cities nationwide, contact me for a one-on-one free consultation.
Comments(0)