Right now we are facing a very difficult real estate market. In general terms we are facing a market correction. Very simply put, that means that prices for real estate are going down (correcting). This has caused many people to become scared of real estate in general.
As far as I can tell the reason property prices are going down is that the value being assigned to any given property is not being supported by the property itself. When people invest in real estate it seems that they buy a property with the hope that someone else will come along and think it is worth more. No work is done, few improvements made...so why would someone else think that a propety is automatically worth more?
One of the great things about our style of investing is that we actual do something to the property. This isn't just about adding carpet and paint to a bad house ("lipstick on a pig"); that just gives you a bad house with new carpet and paint. As you look at property there is a hidden value called its "highest and best use" that most people never see. The reason is that most people are not willing to take the time to learn and train themselves to see the opportunity (and it takes a lot of work and effort). Sometimes the hidden value involves carpet and paint but many times it does not.
I hope that as I work with my clients I will be able to help them understand and realize the hidden value that a property possesses and the abundant opportunity that is available in our marketplace.
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