By investing in our firm, you are practicing what the modern investor calls “value investing.” Rather than trying to time the market and take advantage of price fluctuations, you are buying something because it has value, holding it as long as you can extract a good profit. Here are some guidelines that outline a value investing philosophy.
1. Look for value
This one goes without saying. An investment must have value. That doesn’t mean it has to be priced high. Some highly valuable assets are unloved and discarded because no one has had the vision to see their inner worth. Trends and fads can be misleading because they rarely follow value.
2. Stay patient
Once you’ve chosen an investment, you need to be patient and let it play out over years. We want to own and manage our properties as long as we can to extract the maximum dividends before we even think about selling. Growth from value investing not only comes from appreciating assets but also by reinvesting dividends into new investments, compounding your payouts.
3. Be different
Don’t invest in something because everyone else is. Investing in the latest “hot” property type is a great way to pay too much for something. Be willing to look at investments that others aren’t bothering with, even if they’re boring. Step away from the herd and invest smartly.
4. Don’t time the market
Mostly because it can’t be done. Trying to forecast the market never works. By focusing on value, you’re evaluating something that can actually be measured; something we can predict. This is one the reasons real estate makes such a worthwhile investment: we can easily weigh the value.
5. Banish emotions
Emotions have no place in investing. Your gut or hunches or feelings have no place. Value can be understood by studying sound empirical evidence. The data is out there, you just have to find it. Investing with a firm is beneficial because we do all the leg-work. We find the best investments and present them to our investors.
6. Stay skeptical
When you’re looking for value in an investment , always look for the hidden cracks; the little details that reduce the value of a property. Find reasons to disqualify it from your search. If you can’t find something wrong with an investment, you may be on to something.
Written by Mark A. Mascia, President and CEO of Mascia Development
Mark manages the investment and operating activities of Mascia Development, a diversified value real estate investment firm that acquires, owns and manages retail, medical office, family offices, multi-family, and industrial real estate properties in the most promising long term growth areas nationwide. Through crowdfunding, they create powerful real estate opportunities for high net worth individuals.
A fully integrated real estate company, Mascia Development has in-house capabilities in acquisitions, financing, re-development, and construction; and their principals have experience in property and portfolio management, leasing, and maintenance.
Mark has a strong career in real estate, previously managing a property of portfolios valued over $1.1 billion. Mark has worked at Archstone-Smith (a former publicly traded REIT) and Monument Realty, one of the largest office real estate developers in the Washington, DC metro area. Mark teaches real estate development and finance at New York University.
For more information, visit www.masicadev.com.
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