There’s more to meets the eye when you’re looking at investments. And being able to look past the surface is what allows investors to think differently than the average person.
For example, in real estate, the average person would look at a rental property and calculate that a $42,000 investment would only return about $1,025/yr (2.4%). That’s awful. And they’d move on to the next asset class or next investment opportunity.
However, an investor thinks differently. And looks at real estate in terms of “value” not just “cash”. The average person only measures what comes into their wallet–but an investment can create far more value “on paper”; even if it doesn’t pass into your wallet until years later.
For a full write up on how investors see real estate differently, check out the blog post here.