#24 - The Three Dimensions of Real Estate Investing™

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Unlike stocks, bonds, mutual funds or commodities such as precious metals like gold and silver - real estate is a multi-dimensional asset class. The multi-dimensional nature of income property makes it extremely profitable in changing ways based on varying market conditions. This is a wonderful thing because investors can profit even seemingly “bad” markets. For example, when financing becomes expensive (low housing affordability rates) or difficult to qualify for (low capital liquidity) it can create excellent opportunities to increase rents. When mortgage rates are low and qualifying is easy it can spur terrific appreciation. You can win either way so long as you adapt your strategy based on economic realities.

Additionally, a discussion about Macro vs. Micro Markets™ so don’t just run out and buy based on a city – be sure to screen and drill down into the various Micro Markets™ within each city. Since you can’t buy all of them… you may as well buy the best ones!

Last but not least Jason recommends the book “Revolutionary Wealth” by Alvin and Heidi Toffler.

2 Comments »

  Ryan wrote @ August 23rd, 2007 at 6:50 pm

Jason, this was a great episode! I am a huge fan of the podcast and I was dying for you to cover the mortgage meltdown. Your opinions about the future of rental properties are very similar to my predictions. Just wanted to make sure I was thinking in the right direction! Looking forward to the next episodes!

  Investing in Real Estate wrote @ September 21st, 2007 at 4:11 am

Good Post. Investing in real estate is one of the best option to make money. And to be successful, it is necessary for an investor to understand the seasonal fluctuations that occur.

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