The 4 Lifecycles of Real Estate -ZT
There are 4 phases, or lifecycles, to real estate and here is how it often goes.
Phase 1: You will see new construction, bright shiny homes popping up, landscaping contests, baby strollers and tricycles in the neighborhood. This is probably going on in the suburbs of the city, as new growth tends to radiate out at a pace of one mile per year from growing and prosperous cities.
Phase 2: The same neighborhood now 10-15 years later has aged a bit and now you see basketball hoops and 2-wheel bikes, as the kids are older and want more mobility.
Phase 3:The kids are grown and gone with families of their own and now the parents are riding their own 3-wheel bicycles, trikes to the hip grannies. Here in Phase 3, you’re looking at 25-35 year old homes, where some people are passing away. Others are just hanging in and some are moving in with the kids or going to an A.L.F. (Assisted Living Facility). No doubt, you have outdated homes, deferred maintenance and some repairs to be made. Here is the beauty of this whole thing. These are my cosmetology candidates. Here’s why! The formally elder owners lived there and they needed everything to work. They didn’t update it. They just fixed things that needed repair in order to maintain a level of comfort. They had pest control and the Sears man come annually and piddled around. So things were kind of looked after in that manner. Buy here!
Phase 4: That’s what happens as a result of you buying your ripe- for-rehab fixer-upper in Phase 3 neighborhoods. Odds are, you will rent it out, lease-option it or sell it to a young family when it does sell, and guess what? Yep, out come the tricycles and baby strollers and it starts all over again.
3-wheel bikes (buy here!)
Determine what cycle different neighborhoods are in! Follow cycle #3.
Isn’t that a beautiful story; isn’t that the truth? Think about your own parents and your own childhood. Now I also want you to think about that brand new young family that is counting on you to treat them fairly and give them a trouble-free home when they buy or rent from you.
The harder and smarter you work, the better quality and value you can provide to others. Don’t rip them off. Don’t take advantage, don’t scrimp and for Pete’s sake, do your best to do your level best. You need education and help from others to achieve these heights of excellence.