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Posted about 15 years ago

Can an Imperfect Market Produce Perfect Results?

In economics, it's well known that a perfect market is one in which everybody has access to information instantly, accurately, and uniformly. The closest market in the United States to this is our stock market, where the information flows freely; investors know exactly how securities are priced within moments of the most recent trades. Perfect markets are difficult to beat, and the people who identify and take little pinches of profits call it arbitrage.

The real estate market, on the other hand, is far from perfect. Very little information is known about buy and sell transactions on homes, apartments, commercial properties, industrial centers — often times not until months after the transaction has taken place. It's the lack of instant information that makes the real estate market such a great place for professional purchasers to make plenty of money.

The opportunity to take advantage of an imperfect market is always available for the people who have the most information. And those tend to be the professional investors who are often brokers. Real estate brokers also have lots of information that consumers don't have, which is why the licenses they carry require them to make certain disclosures to consumers when making purchases. Because they have special information, state governments consider it unfair for them to compete against consumers without advising about their license status.

But as long as proper disclosures are made, there is no limit on what professional investors can accomplish. Especially in this crazy market, professional investors are enjoying their lives in the real estate candy store. Check back next week and I will show you how this imperfect information combines with significant market irregularities to yield opportunities that haven't been seen in the real estate market for decades. I'll also show you how to take advantage of these opportunities - especially if you are not a professional investor.

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Often dubbed a "Growth Architect" by his clients, Joel Block advises companies on explosive growth strategies by driving revenue and sales. Well known in the capital markets, Joel is a successful entrepreneur, speaker , advisor and astute investor. Joel is President/CEO of Bullseye Capital (www.bullseyecap.com), a full-service real estate company that supports owners and buyers of real estate assets with brokerage, leasing, property management, and mortgage services. The company also provides investment opportunities to accredited investors. A leader in real estate syndication, the company invests in properties and offers seminars to assist others in acquiring the skills needed to raise syndicate capital to acquire properties. Imagine knowing how to pool funds to purchase any real estate investment, whether it is for single family, multi-family, commercial, or another kind of investment property. For full information, go to www.syndicatefast.com.


Comments (1)

  1. As always....a solid post Joel. I look forward to your posts and calls every week!