Learn to Analyze Real Estate Investments w/ Symon He

Question 1

Why do investors say you determine your profit potential why you buy a deal?

Answer 1

If you overpay for a deal, it does not matter what you do to the deal you’re not going to be able to actualize the full profit potential from that deal

Question 2

What are the four quadrants/phases of the real estate market cycle?

Answer 2

Phase I - Recovery
Phase II - Expansion
Phase III - Hypersupply
Phase IV - Recession

Question 3

What can we expect to see during the recovery phase of the real estate market cycle?

Answer 3

We can expect to see declining vacancy and no new construction

Question 4

What can we expect to see during the expansion phase of the real estate market cycle?

Answer 4

We can expect to see declining vacancy and new construction

Question 5

What does the term “housing starts” mean? And what does it indicate about real estate market cycle?

Answer 5

It is a metric released by the U.S. Commerce Dept that refers to the number of new residential construction projects that have begun during any particular month

While the overall number of housing starts may convey a general sense of economic direction, understanding what types of houses are being built can give a more tailored assessment.

https://www.investopedia.com/terms/h/housingstarts.asp#ixzz5O14UG900