From the Desk of Zack Levy, Senior Investor Relations Consultant
The economic cycle is the fluctuation of the economy between periods of expansion (growth) and contraction (recession). Factors such as gross domestic product (GDP), interest rates, total employment, and consumer spending, can help to determine the current stage of the economic cycle.
When we invest our hard earned money we do it with a goal in mind. Whether it is to provide our family with a better future or to save for retirement. An investor's goal may vary but the series of emotions we go through such as greed or fear is a constant. For an investor, our mistakes, the big ones at least, are the result of allowing emotion to overrule logic. Emotions are the curse of logic.
On the other hand we do not have a crystal ball to know what’s going to happen in the future.
Every investment has its own risks and rewards. Yet, being able to make a prudent and logical decision at the most crucial points will result in an investment that generates positive cash flow or yields a high return. Or you could end up being that uncle at Thanksgiving who always says “I wish, I could’ve, would’ve, should've…”
Historically, it has not been known for investors to lose their capital, when they bought and held their income producing real estate assets over a long period of time. Especially, when you structure the deal properly, and have the right team and partners working with you side-by-side!
In todays' Investor Lesson #29, Abraham Mehrian of Family Financial Strategies, Inc., breaks down the importance of how the "structure of the investment" can drastically change the net return. The Case Study provided is an example of how someone were to invest $572,000 in REAL ESTATE SYNDICATION and the many different outcomes that may result due to the structure of the deal, even though the investment itself is exactly the same.