An investor perspective -- why don't the numbers add up?

Services for Real Estate Pros

I am an active real estate investor with a different focus from most other real estate professionals using activeRain. I don't care about commissions. To some degree I don't even care about making sales. My real concerns are cash flow and margins. My priorities are finding good property at a discount to market and keeping operating expenses in check. I buy property with my company's (or my own) capital so I have a heavy financial  stake and burden relative to the average real estate proessional. If a deal isn't good, or if the market is not healthy... I must step aside. This is simple self-preservation. But ultimately the local market does matter. Sales in the aggregate are important. Local economies are important. Why? Simply put a healthy market, like a rising tide, can lift all property values. Inversely, failing markets can cause turmoil and can sink even the bigest of ships. Healthy markets are essential to promote opportunity and prosperity.

I hope to use this forum, through future entries to this blog, to provide my insight into the local real estate market. Similar to what an investor would do in the stock market, I use analysis of market fundamentals to make rational investment decisions. Unfortunately, we are experiencing a great deal of FUD in our local market. FUD (meaning Fear Uncertainty and Doubt) creates confusion, and a confused mind always says "no". Extreme FUD can alter market direction and can potentially have some lasting negative consequences. I hope to clear the FUD, and offer insight into the "numbers" that are so frequently misrepresented.

Have you ever asked yourself 'who verifies the numbers provided by the press?' When I enquired about data in an N&O article, I realized noone was verifying the content. Not even the N&O authors. Stay tuned for a few blog entries covering a reality check.

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