Market Cycle Analysis

Real estate is largely macro-economic. It responds to credit availability, population growth, and land scarcity. Trying to day-trade property is foolish, but understanding where we are in the cycle is mandatory.

The Four Phases

• Recovery: High vacancy, low prices, negative sentiment. (Best time to buy).
• Expansion: Rents rising, construction starts, cap rates compress.
• Hyper-Supply: Cranes everywhere, vacancy begins to tick up, yields drop.
• Recession: Credit tightening, distressed sales. (Time to hold and rely on your DSCR).

See why we advocate the 10-Year Hold to smooth out these cycles.