That’s what this line represents right here. blue mountains Valuers Now this represents the previous artificially inflated values and down here represents these troughs and these lows. Valuers are at a really interesting place in the economy right now where valuers are in the middle of our recovery. It’s probably one of the best historic times to be in real estate than valuers ave seen for years.
Now, let’s just talk briefly about what you do and how you value properties. These bubbles… valuers are gonna use a value method called CMA, stands for a Comparable Market Analysis. And what valuers are doing during these cash flow markets is you are interested in buying a property and using valuers will, my approach to real estate, my formula, I don’t feel good about buying a property unless I buy it with a… with a huge equity position, a huge discount.
By the way, another little bonus that’s what Rockefeller did during the Great Depression. Five years later when the values came up he was able to sell off his real estate and he became America’s first billionaire. So the Warren Buffetts, the Donald Trumps, the modern day very, very wealthy, they’re using these strategies right now. What is a Comparable Market Analysis? I’m interested in buying a house and the CMA basically says go back in the last six months. Find five or six nearby properties that are similar in size, age, bedrooms, bathrooms, features, lot size, and use a system that most realtors have access to through their… through the multiple listings service – the MLS.
You can select the five best properties and compare them to the property that you’re looking at buying, and it will usually spit out some kind of thing saying, “Valuers will, these five properties in the last six months roughly sold for $, and you’re buying this for $,?”. Yeah, that’s a good deal. I’ve got roughly $, of equity. Now does it mean that there’s $, of equity? No. There’s only one way to know that. A home is only worth what someone’s willing to pay for it. But if you’re wicked fast and you know how to find these really good deals, then you can substantiate that valuation. You can substantiate that equity. At least get as approximately as close as