The Azucena Take: What Investment Real Estate is Worth Overpaying? (A Thought Exercise)

"What investment real estate is worth overpaying?" is a thought exercise that we will be looking at this week. It's a topic that is often brought up during meetings or when chatting with other like-minded investors. It's a fun thought experiment while also allowing one to look into the mindset of another.

A smart investor isn't looking at what is present. They are looking at several factors such as past trends in the market along with the current trends, potential value, and what to expect in the coming years. It's all about looking at all the information provided while also looking at creative means to capitalize on an investment.

When presented with such a scenario, it's important to have three components of critical thinking:

Information: Investors need to know the market, the submarket, and the current trends along with how it will impact the properties in the next 5 to 10 years. 

Insight: One needs to see not the potentials it has today but also for tomorrow and the days to come. 

Perspective: An investor not only must align the property with the needs of the tenants now but also the market demands that will come up in the next few years. 

Smart investors also don't act on their impulses, they work with real experts. We are referring to people who understand the markets and have access to an abundance of credible information. Be aware that real experts work for a respected institution, they don't make poor-quality videos on YouTube.

Working with experts, having the right information, and understanding the market will make overpaying for an investment worth it in the long run.