Real Estate Advice 1927
EIGHT MAXIMS FOR REAL ESTATE OPERATORS
HOW to make money handling real estate was recently comprest into eight maxims by W. Burke Harmon, a well-known New York realtor, and reported as follows by the New York World:
1. Never buy for cash. The successful operator invests just as little of his own funds as possible, glad to pay 6 per cent. interest for the use of money that he expects to bring profit. And mortgage interest is deductible from your income tax.
2. Buy when others aren’t buying freely—don’t wait for a boom.
3. Buy property monopolistic in character that will increase in value because it can’t be exactly duplicated, such as water-front near a great city or a business corner in a thriving neighborhood.
4. Buy where things are going to happen in the future, not where the neighborhood is built up and changes are unlikely.
5. Don’t take things for granted, such as the statement that bridges make high values or that proximity to a railroad station is an asset. Transportation facilities make values, but not necessarily for property almost on top of bridge or station.
6. After asking questions and comparing values in the neighborhood and judging all future possibilities, then have the courage of your convictions to stay by your guns.
7. Know when to sell—you never get poor taking a profit, but don’t sell until you are convinced values have approached a temporary peak at least.
8. Don’t retain indefinitely property that is unimproved. Either sell or put a building on it that will produce enough to pay taxes and carrying charges.
Source: The Literary Digest for July 23, 1927