Additionally, US property values have continued
to fluctuate over time, due to changing demands,
even if the property doesn’t undergo any changes.
To date US real estate has always gone up in value,
even though there have been fluctuations.
14
14
Short-sightedness and inefficiency in predicting
these changes cause some to sell low. Yet, those
that understand the data, trends, and factors
involved have the ability to reap windfalls in equity
by acquiring these assets simply with good timing
and good negotiation skills.
How much is that Asset Worth?
of by managing the fundamentals themselves.
One of the first things that intrigued me about real
estate was the unique opportunities available to
achieve high returns, with the added advantage
of being able to control your own asset values.
Running the numbers, it seemed the most obvious
and common sense approach to outperforming
the performance of my stock market portfolio.
Another factor is that the real estate market
allows you, the owner/investor to do things that
would increase the value of real estate through
management. Thus, often enough a skilled
investor could negotiate the purchase of a
property for $75,000, within a short time, and with
$5,000 or so worth of management and marketing
expenses or physical improvements, could resell
it for $130,000. That creates a gross profit of
$50,000.
Stocks have proven highly inefficient for
consistently generating reliable high net returns,
and value when you need it. Many advertise being
able to ‘beat the market’. Yet, when it comes time
to invest the