When people think of investments, they often think of Dow Jones, NASDAQ, or Apple and Amazon making huge returns for investors over and over again.
Here at Go West, we think of investments in a little different way, we LOVE real estate. And the number one reason why we love real estate is the real estate market in an imperfect market!!!!
OK Trevor, what the heck do you mean by imperfect market and why are you so excited about this?
Well, lets first start with as close to a perfect market as we can get, the Foreign Exchange market, this is a direct market with many billions of currency trading hands every day, and at the end of each day you have two things 1) a winner of the bet or position 2) the loser of the bet or position. So by all accounts, you by definition have a zero sum game with a plain winner and loser.
Another example of a perfect market is the buying of Apple Inc stock, as of right now the price is $171.11 per share. This is the going price for each share of stock, some folks and supercomputers, can make a lot of money buying and selling the daily fluctuations in stock prices, but normal retail buyers can only buy and sell stocks as they can afford. Unfortunately, this going rate is set by the market, and in order to buy or sell these assets you have to go back to the same market you bought them in, while usually paying a fee in order to sell them or buy more of them, just for the right to play in the investment sandbox known as the stock market.
Now to the good stuff, with real estate, each piece of real estate is it’s own asset unto itself. If you do not have a loan or mortgage on the property you can sell it for as much or as little as you want. Directly to other buyers or sellers, you don’t even need a realtor or broker. It is your asset and you choose the price point for acquisition or disposition, not a suit in New York or a CEO in Silicon Valley.
The “market” rate for your real estate may be a certain price per square foot or price per acre, but you choose the actual sale price. As long as all sides agree to price and or terms, this is the epitome of a win-win transaction, or the complete opposite of a perfect market zero sum transaction.
Even though there are many different reasons to love real estate for investment, the ability to purchase or sell any asset class of property directly to someone else for any agreed upon price without intervention of regulatory agencies or high commission sales professionals. With real estate we have control of our destiny, and control over your financial future is a wonderful thing.