Tuesday, 29 May 2012

The Reallionaire Matrix: A proven formula for analysing high performing property assets.


To dominate a real estate sector, amplify quadruple returns and accumulate millions in cash, reallionaires subscribe to a proven success formula. In fact, real estate cash-rich millionaires/billionaires (or reallionaires for short) know this and therefore, focus their energy on analysing real estate assets via a proven formula: ‘The Reallionaire Matrix.

The reallionaire matrix is used to analyse the performances of property assets over the propertys life cycle, within a given market. The concept was developed by property investing expert, KT Cunningham, after interviewing, studying and applying the investment patterns of over 300+ property investors worth £100m or more. It was concluded that, unlike other real estate investors, reallionaires differ in that they are both cash rich and asset rich as a result of monitoring industry trends and applying some key fundamentals.

So, to briefly describe the concept, the reallionaire matrix divides a property asset’s lifespan into four quadrants. In this way, a savvy property investor or asset manager can determine which property assets are emerging gold rush properties, which property assets are high performing cash cows and which property assets are heading for the graveyard. Dying property assets possess the propensity to bankrupt investors as they are nearing the end of their life cycle. At this stage, such assets begin to produce negative equity and negative cash flow. Today, a typical example of such these assets, include, retail shops and residential property. (See diagram below).

                                   
The reallionaire quadrant is one of the most effective tools for analysing property portfolios in the post credit-crunch era. It has the power to indicate which property assets to buy, when to buy and which to avoid. It also helps investors to deleverage property cycles. It does not encourage investors to become asset rich and cash poor investors.

Examples of reallionaires include, Donald Bren, Ted turner, The Reuben Brothers, Peter Jones, Richard LeFrank and Ray Lee Hunt, just to name a few. These investors have stuck to the reallionaires formula and continue to make millions despite the recession.

Now, here is the good news! Anyone can learn this formula.

To fund more about reallionaire matrix and how you can use it to find high performing property assets that can generate millions for you, visit our youtube channel or email me for a free MP3 audio.

No comments:

Post a Comment