When is the Best Time to Buy? pg. 83
America’s Top Attorney on Combating Fraud, pg. 82
which offer the most transparency
and to pay attention to informa-
tion access in initial agreements.
Maintaining Property
Values & Pioneering
Change
Real estate, as distinguished from
publicly-traded REITS or funds,
is typically an illiquid if not
long-term investment. To realize
maximum value, as Boesch notes,
investors are often advised that
the property must be held for
some period of time, during
which the market can fluctuate
up or down. Whenever investors
are involved in a partnership, or
a limited liability company, or
a corporation, and are required
to hold the investment for some
period of time, it is inevitable that
partners or members can grow
apart in their expectations. Family
issues, divorce, death, personality
clashes, life changes, job changes,
often can lead to changing needs
and expectations. And “change
brought about by these every day
human events,” Boesch says, “can
lead to differences, over when and
how to cash out of an invest-
ment.”
Ups and downs in real estate
can be subjected to other legal
challenges that impact value.
Boesch cites changing shorelines
from climate change, neighbors
or public entities clashing with
private property rights to exercise
Several years before the real
estate crash of 2007, people
would ask me, “Is there a real
estate bubble?” I had to em-
phatically tell them that we
were already deep into a bubble
with some areas having already
“popped”. One of the reasons
they would ask was because they
wanted to know if a particular
area was going to appreciate in
value.
control over development, and environmental
challenges, as just a few of the current events
that are affecting real estate investments. En-
vironmental issues in particular have attracted
the Boesch Law Group’s attention as Philip
Boesch has developed the reputation as one of
the leading legal minds and protectors of the
environment.
During his tenure as President of Heal the
Bay, the organization achieved the adoption
of rigorous new standards to reduce coastal
pollution, the completion of a multi-billion
dollar sewage treatment facility, and successful
litigation against the EPA to enforce protection
laws. Presently active on the Board of Directors
of TreePeople, the leading environmental group
promoting sustainable solutions for our urban
environment, he is not only passionate about
dealing with water and climate change issues,
but about green solutions, sustainable self-suf-
ficient development, and organic construction
materials. All of these items should be on the
radar of real estate investors and developers.
Here is the lesson that so many
investors had to learn the hard
way — including myself:
Don’t buy real estate with the
idea that you are going to make
your money through apprecia-
tion. It’s a huge mistake and an
easy trap to fall into.
It’s hard to predict the future,
especially years in advance.
Back during the boom, ev-
erybody was looking back in
hindsight and saying, “Boy, what
if I’d invested in that city and got
the 30% annual increase in value
on the house I bought – that
would have been great!” But
hindsight doesn’t do us much
good. It’s like gambling and is
usually based on luck.
“Investing” based on appre-
ciation is called speculation, but
what I’m talking about is a much
more conservative approach to
building wealth with a real estate
portfolio.
Build it so you know there will
be cash-flow and equity growth
when you’re ready to retire. If
you’re going to speculate then
you’ve got to be prepared to lose
all of the cash you spent to ac-
quire the property and potentially
more.
Continued success! v
The Future of Real
Estate for Sophisticated
Investors
Anticipating future challenges as shorelines
are altered by climate change, and as pollution
and regulations evolve into new legal battles,
Boesch encourages real estate investors to pay
attention to how these changes will affect prop-
erty values. Coastline erosion and waterway
pollutants, for example, could dynamically shift
demand and value to properties several blocks
inland, but increase disputes over walkways
and views.
Those with the foresight to recognize
these trends and optimize their investment strat-
egies appropriately will be those that are most
successful.
Empowering Your Legacy
“Being a good neighbor and working with
local governments doesn’t mean surrendering
your private property rights,” Boesch says. He
directs those passionate about sustaining the
value of their real property investments to Tree-
People’s mission, as a strong example of how to
preserve wealth by sustainable, environmental-
ly sound management. v
Realty411Guide.com
PAGE 110 • 2014
For more information about
Marco Santarelli, please visit
http://NoradaRealEstate.com
reWEALTHmag.com