When is a good time to start planning for a downturn? Real estate consultants share their strategies and best practices for timing the housing market.
For both long- and short-term investors, John Burns Real Estate Consulting advises clients to evaluate their position against the competition and their own competitive edge, their ability to absorb and tolerate risk, short- and long-term investment horizons, and capital structure. Vice president Kristine Smale adds that this should be done in writing to ensure collaboration and cohesion on one's team.
Clients with patient money, [long-term investors], who are chasing a long-term rate of return and have managed their debt levels are more comfortable with the ebbs and flows in the market. While they may not like the daily fluctuations in their stock price if they are publicly-traded, we help them focus on diversifying their portfolio without deviating from their core competencies ... Most of our clients, [medium-term investors], are not ready to sell but aren’t planning for succession either.
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