Page 36 - Trump University Commercial Real Estate 101

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Ho w to Read a Market

When most of us look at a stream, we see water running through a

field, or perhaps we appreciate the nice landscape. A seasoned fi sherman
looks at the same stream in an entirely different way: He reads the
stream, noticing the currents, eddies, and contours. At a glance, he can

focus on the very best places to drop his fishing line and fi nd the
big ones.
It ’ s no different with real estate. Most people have a vague sense of
how their town is doing. Ask them, and they ’ ll say “ Pretty good, ” or
“ We ’ re kinda hurting right now, ” or “ I ’ ve never seen it this bad. ”
These are generalities.
When a professional reads a real estate market, it ’ s altogether a
different story. She can tell you specifics about construction, job

growth, the path of progress , and much more. Even more impressive is
her ability to predict the future. Yes, when you understand the concept
of leading indicators and what to look for in a market, you can quickly
get a solid idea of what that market will be like in months and even
years into the future.
In order to understand how to read any market, you fi rst must
become familiar with the four main phases of the commercial real
estate market cycle:

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