You Would Never Believe What I’m About to Show You (Were it not for the Indisputable Evidence.)
By now, you hopefully understand the difference between forced and automatic appreciation. If not, click here and I’ll explain it all.
Automatic appreciation requires NO special real estate skills.
It has UNLIMITED acquisition candidates. You don’t have to deal with motivated, desperate or un-educated sellers.
Every property qualifies!
It’s lower risk and it’s easy.
You only have to do one thing right…
…Know the local cycle.
It can be combined with any forced appreciation or transactional income strategies you want to use… to exponentially explode your results.
Even if you don’t have time or interest in all that time-intensive specialized ‘tactical’ real estate stuff, you capture the lion’s share of the wealth while avoiding most of the risk and effort. I call it the…
It’s a silly name, I know – and that’s kinda’ my point.
I was going to call it something like…
Find an Average Realtor
Get an Average Property
Pay an Average Price
Hire an Average Manager
Find an Average Tenant
Charge an Average Rent
Provide Average Service
Hot … Appreciating … Market
You get my point right?
All that matters is the last part… The “HAM” – Hot Appreciating Market – If you get the “where” and the “when” right – you look like a genius no matter how many other mistakes you might make.
It can be COMBINED with any
‘forced appreciation’ or transactional income
strategies you want to use.
Using other investing strategies and tactics optimized for your market’s cycle can exponentially explode your results.
If you have the time and skill to grab every last dollar – go for it. Use all those forced appreciation tactics in a HAM market. I mean it. That’s great… because now you’re not letting the tail wag the dog; you’re doing it the right way… making automatic appreciation – the “market” – do all the heavy lifting for you!
So many investors are suffering today because they did it ass-backward; Putting strategies and tactics first.
Let’s see FAR-GAP-HAM in action with a “Local Market Master” (LMM) example for Washington, D.C.
(If you want to get totally blown away, check out my latest Real Estate Market Report and see what happens when we go nationwide using the “Total Market Master” (TMM) system.)
As with all of our examples… we’re going to purchase the properties FOR FULL RETAIL PRICE.
Now, this is a key point:
You don’t have to use down payment and you certainly don’t have to purchase for full retail price or even use a buy-and-hold strategy, but for our illustrations, we want to keep it simple and be very conservative.
You should be thinking in terms of your own investing style.
So we’re adding NO additional value. No renovations, nothing … we’re simply holding them; your rent covers your mortgage interest and expenses which is pretty close when you factor in capital improvement reserves.
A “buy signal” means it’s time to get more aggressive. A “sell signal” means just the opposite – change your tactics, get more conservative.
It works for all investing strategies.
In these simple examples – we limited our options to ONLY a “buy” or “sell” decision based on a simple rule…
When the wealth phase chart turns green, we buy.
When it ends, we sell.
In reality, there are many other tools and custom options that give you additional decision trigger to help nail down each market, but for these examples, we’re going to limit our actions to only that one simple rule and that one simple tool.
Same $20,000 down payment as before – I’ll zip through this real fast.
Buy an average property in 1980, sell in 2016 – you made $101,600 profit on your $20k investment.
Now, with the aid of our real-time wealth phase chart, you log in to our membership site, spend 5 minutes looking at the DC chart and know to get in. So in 1985, you buy an AVERAGE property, you PAY FULL PRICE, you ADD NO VALUE, all you do differently is you get out in 1990 when the indicator tells you to. Stick your money in the bank until the chart turns green again in 2000 and repeat the process. You sell in 2007 and stick your money back in the bank, avoiding all the downside while capturing all of the upsides.
How’d we do? Just about $2 million in profit… $2,220,259 to be exact… over $2,118,659 more than when you let the market whipsaw you back and forth, up and down… and steal all your profits.
All because we knew where the hot appreciating market was and when it was coming to an end. Now you can know this exact priceless information too.
Last update of the article: 03/26/2020.