By: John Wilhoit Jr. - 2/22/2012 2:29 pm
What does real estate equity and jet fuel have in common? Both can evaporate before your very eyes! Equity is the rocket fuel of real estate investing. In the last five years we have experienced an entire real estate cycle.
Simplified the real estate cycle is equilibrium, growth, over-built (bubble), bust, recovery. Except for the recovery part we have seen each part of the cycle in the last five years.
A rocket scientist never uses rocket fuel just for fun. Even in experimentation fuel usage is purposeful. Like a Sunday drive, without a known destination- you're just driv'in. Likewise, the energy and resources required to start and finish a commercial real estate transaction is significant. It is a serious endeavor with large financial ramifications.
The primary "sense of purpose" in any real estate investment should be, first, preservation of capital. Second is providing a return on...
By: John Wilhoit Jr. - 2/14/2012 11:50 pm
What Google and Intel Know about real estate investing is that a certain cross section of skills is necessary to optimally run a business. Using a fine point pen, these two global, multi-billion dollar companies have identified the necessary core competencies they desire and they know exactly the type of people they wish to hire. I believe that property management companies hiring people with these same skills could see exponential increases in productivity.
Google and Intel have scholarship competitions to encourage young people in science, engineering and computer science. Do you know a burgeoning scientist? Google and Intel are searching the globe for talented young minds to change the world.
Yet while ideals are important, the people they seek must have certain cognitive and social skills to fit into their respective organizations. Hermits need not apply.
In recent years the applicants at Intel's Science Research Fair attained a...