The Advantages Of Linear Real Estate Markets!

Well you know I've taught you about the Hartman risk evaluator where we talk about the LTI ratio the land to improvement ratio and how the lower risk markets the more linear markets are lower land value markets and higher improvement value the home sitting on the land as a ratio that sets a floor on downside risk. Those are more linear and you've got much less leverage in the more linear markets and better cash flows to boot. You want to lower your risk. You want to you want to be a prudent investor be in the linear and maybe some of the hybrid markets you won't see the radical appreciation and you might be jealous or green with envy of people in those markets during certain times but more likely than not overall over the long term you are going to win the appreciation game because the downside risk and the givebacks and the losses during the correction phases of the market cycle you're just not going to give as much back as those people in those cyclical markets are.