Wed, 27 June 2018
#172: Your market choice is more important than your property choice.
One of the most prominent real estate developers in the United States, Victor Menasce, tells us how he selects a real estate market.
Investing in larger metro areas is generally safer than investing in smaller metro areas because geographies are better diversified.
Being invested in only one investment market is a mistake. You’re undiversified.
Should you pay more or less than the construction cost of a property?
Victor tells us the difference between price and value, and why that matters to you.
Four factors drive price/value: 1) Construction cost. 2) Availability of money. 3) Inflation. 4) Supply and Demand.
Victor is an expert at selecting markets, developing, and raising capital for deals.
If you’re developing or making a large real estate investment, think about how consulting Victor could be a great investment. Connect with him at VictorJM.com.
I join you from north Florida today because I’m out looking at, yes, real estate markets!
Want more wealth?
1) Grab my free E-book and Newsletter at: GetRichEducation.com/Book
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Listen to this week’s show and learn:
01:45 Investing in only one geographic market is a mistake.
02:30 Recency bias.
08:00 Investors should start with economics and the market, not the property.
11:48 People are moving south.
13:10 Primary drivers. Oil & gas.
14:25 Real estate use type: senior housing, residential, shopping malls, office, medical.
20:25 Solving problems and meeting needs. Get out from behind your desk.
23:40 Buy on the line; move the line.
25:18 Formulas and numeric rules of thumb.
27:20 Jetsons vs. Flintstones.
29:55 Relationship-based deals.
32:24 Price vs. value.
37:43 Your turnkey provider has local knowledge.