Simply put, real estate "Wealth Phases" are the times when you can make the most money with the least effort, capital, and risk — because:
- Real estate values are appreciating, and
- Appreciating markets are vibrant — more buyers and sellers, deals are easier to do, and real estate is (temporarily) more liquid.
Real estate is cyclical. All prices rise and fall over time, and these cycles occur at the local (city) level. Every local market is different — there's no such thing as a "national" real estate market, only an average of hundreds of divergent local ones. At any given moment, some local markets show double-digit appreciation while others are in steep decline — increasingly, red-hot markets sit right next to crashing ones.
Owning or controlling leveraged real estate in declining markets is the kiss of death: the same leverage that builds wealth in rising markets destroys it in falling ones. Trying to create wealth ignorant of these cycles is taking two steps back for every three forward. Avoiding the recurring cyclical declines builds wealth many times over vs. investing blindfolded.
On the new platform, the Wealth Phase chart on the Market Summary Report shows exactly this — the green shading marks the times when the local cycle is best for wealth-building and transactional income, generated by our algorithms in real time as data comes in.
