Welcome to passive real estate investing the show where busy people like you

learn how to build substantial passive income while creating wealth for the long term

and now here's your host Marco Santorelli.

Welcome to passive real estate. Now here's your host Marco Santorelli.

Welcome to passive real estate investing.

I'm your host, Marco Santorelli.

And today we're going to talk a little bit about market cycles.

In order to make a profitable investment it's vital that you understand the

cycles of the real estate market because they actually affect the value of the properties that you

want to consider or the properties that you own.

Now let's be clear right from the beginning.

I am not suggesting or implying that you focus on appreciation or potential appreciation

in lieu of cash flow. For me, cash flow is still the

number one priority. It's at the top of the list. It is the most important factor

that I look at. So I look at cash flow in terms of dollars, but I also look at

cash flow in terms of what's my cash on cash return. That's how I judge a good performing

asset. So in terms of market cycles the first thing to understand

is just as the weather has four seasons so does the real estate market it has four

general cycles an up, a peak market, a down market, and a

bottom market. In other words, just as temperatures fluctuate during spring, summer, fall and winter, so do property

prices in residential real estate. They go up and down in their cycles. However,

unlike weather seasons, market cycles tend to last longer at approximately

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