Conceptual Skills = Information = Computers = Linking

Human Skills = Activity = Business = Time

Technical Skills = Positioning = Real Estate = Space


The above all inter-relate but real estate is a base or a foundation for one's business. Real Estate is a paradox in that it is the ultimate in creativity and can be the very focus of information. Real Estate will always be a part of everyone who is wealthy's ownership.

The income generated from real estate is labeled as "Certain" or a major factor in major players world "Certainty".

The reasons for this go beyond the leverage, favorable financing, tax benefits, security, and tangibility. When owning larger portfolios of real estate it takes on a business and information quality which allow creativity in deal structuring unmatched in any other business. It is truely the BASE. The learning is never ending.

Most people start their businesses from financing equity out of there real estate. Then when the business is successful they go full circle and invest more in real estate either directly or indirectly which increases that certainty and long term predictability. With a quality portfolio cash for investment or acquisition is never a problem as equity can be pulled out at any time tax free. This enables other abilities like controlling the timing for reporting income, hence maximizing cash flow.

To understand this in part is a mathmatical fact that returns on small hard dollars can be astronomical, but returns on billion dollar portfolios are measured between 5% to 10% but the hard dollar cash flows are through the roof (Ex: Buffet)

Small = High ROI - no interest of large investor (you and I)
Large = 10% ROI - massive cash flow and certainty of that cash flow

Large investor will not walk across the street for $500 because it takes up to much of their time. The $500 is temporary and not permanent and reoccuring. A powerful investor is always looking to build more certainty in cash flow - not a one time gain.

The answer is yes, real estate is always part of any successful player's portfolio. And yes it should be part of everyones minimal understanding. You can factually make money in real estate with rudimentary knowledge and ownership over time. All good investments build in a certain amount of permanence and certainty. Real Estate has a head start in this permanence and certainty.