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John,
My point about finding deals is similar to Warren Buffet's value
investing model. Buy what makes sense and avoid the averages or the
broad market. Find assets that are under priced in terms of true
current value or in terms of the income produced by the property.
Opportunities where value can be increased though better management or
a change in the property.
The big difference when it comes to finding a deal is you find a
motivated seller. This isn't possible in an exchanged based investing
model. The exchange stands in the middle and discounts the buyer from
the seller (legally and financially). Solve the seller's issue and you
can get a deal on the property.
John
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