Which Side of the Quadrant Do You Investing In?

If you like visual metaphors as a tool for effective real estate investing, then you would be delighted to discover the 'Reallionaire Quadrant'. Also referred to as the 'Portfolio Building Model', the quadrant is a useful and effective tool in helping investors determine which property assets they should buy and when. It also provide investors with an insight as to what type of acquisition vehicle to used, which method of finance one should tap into and which asset protection and exit strategy should be employed. It is also a yard stick for maximising quadruple returns.

To understand the model, you need to understand how property asset cycles work. Every property asset has a life cycle (regardless of whether the economy is in a booming or burst situation). A property asset life cycle begins in it infancy, subsequently grows into maturity and then dies.

The reallionaire quadrant purports that if you buy property assets when they are in their infancy stage (Quartile 1), your chances of accumulating millions in cash and equity from real estate investing is far higher than if you were to buy them when they are in their dying stages (Quartile 4). See diagram below.

This key tool is what distinguish Real Estate Cash-rich Millionaires & Billionaire from average property investors and savvy investors. There are to many property investors who focus on buying property assets that are on the left. They focus on property assets that are either cash-cow assets or dying assets. Reallionaire do not invest solely for cash flow and thus channel their energy towards buying property assets that are on the left. In short, reallionaire invest on the left side of the quadrant. see below:

Generally speaking, there are four types of property investors, namely, average investors (Q4), savvy asset rich property investors (Q3), Super savvy cash rich property investors (Q2) and the Ultimate mega cash-rich property investors (Q1). Property investors who become super and mega rich are the ones who buy property assets that sits on the left side.

So, which side of the quadrant are you investing in? Are you investing for cash flow, just to accumulate assets or for quadruple returns? To find out more, subscribe to our magazine at www.reallionaire-mag.com