It’s All About Knowing When to Sit Out THIS Part of the Dance.
If you followed my Las Vegas Illustration, you would know that compared to investing in Vegas real estate, even if you sat on the couch eating potato chips for all of the ’80s and 90’s – you still did much, much better and with less risk and effort!
Pretty crazy, I know.
Timing is everything.
All it takes is one small change in your investment strategy to become a Local Market Master (LMM).
Let’s do an investing analysis of San Diego… (To see how to get an investment analysis of your Local Market – Click Here Now)
Notice the ‘spikes’ – the momentum reversals – that blue line – when the market topped-out in the late ’70s, late 80’s and in 2004.
I meant to point that out for Las Vegas, too.
That’s Market Psychology causing those spikes and reversals. Make a mental note of them. You’ll see the same thing in just about every example today. We’ll talk more about that later – it’s very important. You’re witnessing the only system on the planet that actually tracks Market Psychology.
OK, let’s take that same $20,000 original down payment, buy in 1980, sell in 2016.
After riding that roller-coaster up and down, up and down, we end up with only a $107,174 profit.
Impressed? Not me… that’s a long time to be working for a measly tripling or quadrupling of your money, exposed to a lot of risks for a long time. I mean, it’s better than losing your entire investment – like you did in Vegas – but is this how real estate millionaires are made?
Not unless they’re on the 500-year plan.
Here’s how it’s done:
You invest in appreciating markets and you avoid declining and dead markets.
You want to avoid declining markets for obvious reasons. No rocket science there.
Here’s where most people mess up… Dead markets, the flat ones that don’t appreciate OR decline still cost you – even if you’re not losing money because they suck the life out of you… the more time you spend treading water in dead markets, the less opportunity you have to be in hot markets.
I know because I spent many of my early years doing just that, humping lots of properties in dead or flat markets, buying low and selling higher, forcing all the appreciation and profit…
I worked my butt off, building big sales and acquisition teams. Thought I was doing OK until I noticed that a few of my real estate colleagues – by luck – happened to be in hot markets, doing the same thing I was doing, EXCEPT – Automatic Appreciation did all their heavy lifting. While they cashed big, effortless checks and looked like geniuses, I was scrambling for my next deal.
That’s when I woke up.
Here’s what Automatic Appreciation can do…
Using the green wealth phase indicators you see highlighted on the chart, this time, we only invest when it’s best.
We buy in 1986, sell in 1990 – having captured nearly all of that big up-cycle, and getting out just before appreciation turned negative.
We stick our profits back in the bank and earn interest until our next buy signal comes along in 1998. We reinvest all our capital and ride that gynormous wave until we get the exit signal in 2006. We cash out and put it back in the bank.
How much better did we do?
Are you ready?
Are you sure?
How about a $4,744,997 profit!!
Compared to that $107,174 – I’ll take it! That’s more than 40 times – as in 4,000 % better – with less risk, less effort – and having your money in a stinking bank for half the time.
On the original $20,000 investment, would you prefer a 536% return or a 23,725% return? … that’s almost an extra $4.6 million, simply by being in the right place at the right time, on purpose.
How can that be?
You ‘work’ less but make 40 times more profit?
Sounds good, right? If so, then you MUST SEE THIS.
Last update of the article: 03/26/2020.