Investing in Emerging Markets
By: Clint Steiner
ARE YOU LIMITING YOUR INVESTMENT GROWTH POTENTIAL?
Real estate investors that build wealth using the traditional long term "buy and hold approach" often overlook one of the most profitable and passive strategies of real estate - timing. Strategically building a real estate portfolio based on timing focuses investment buying decisions in parts of the country with economic strengths that support rising real estate values, regardless of the investor's hometown. The real estate market cycle is based on the fundamental economics of supply and demand.
As economic conditions in one city cause real estate values to rise, values in another city remain flat as vacancies climb. A few years later, economic conditions change in both markets, the cities swap place in the cycle and the opposite city now has skyrocketing real estate values. It is useful to seek out experts who track this cycle
and monitor the economics of thousands of real estate markets weekly.
WHAT IS A PORTFOLIO COMPRESSION?
Building a real estate portfolio by timing investment property purchases in cities where economic conditions lead to rising real estate values will increase an investors net worth by millions of dollars. Strategically timing the purchase and the sale of real estate investments is called Portfolio Compression and results in
exceeding the growth of the traditional 15 year buy and hold approach. Portfolio Compression captures real estate growth in shorter segments of between 1 and 3 years resulting in increased diversification and a more linear equity growth curve. This allows investors to target a wealth building plan through the growth phases of 5 to 6 market cycles rather than limiting growth to any single
economic location. Portfolio Compression incorporates a multi-market investment approach focused on:
* Buying investment property in cities where economic conditions support risingreal estate values;
* Selling investment property as economic conditions change and a city moves into the plateau aspect of the cycle;
* Incorporating the use of strategic releveraging plans, combined with a §1031tax deferred exchange;
* Identifying next market growth phase opportunities for replacement investments.
Supply and demand imbalances create a trendable, trackable and predictable cycle. By monitoring economic fundamentals, it is possible for investors to fully implement Portfolio Compression and time predictable cycles. For more information on incorporating the 4-Phases of Portfolio Compression, timing the real estate cycle, and knowing the economic conditions of over 12,000 cities
nationwide, visit Signil Wealth Consulting Group at www.strategicrealestateinvesting.com
Clint is a Real Estate Portfolio Planner for Signil Wealth and has been investing in Real Estate for 4.5 years.

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