While attending business school I sat through endless hours of lectures given by professors who in my opinion loved to hear themselves talk. So much of what was being taught would work in theory but not in practice. Occasionally I’d obtain some small piece of information that I felt would be useful in the working world. One such piece of information came to me during an economics class when the professor made the statement “A rising tide floats all boats”. This class was so long ago that I’ve forgotten the context of the statement and only retain the statement itself. Frankly, it is an odd statement to remember and one would wonder why I ever thought it would be useful. However, it does have application in the working world.
A rising tide floats all boats … envision yourself on the tropical shores of a Mexican fishing village early in the morning. The tide is out leaving all the fishing boats resting on dry ground next to their moorings. There are all types of boats, dugout canoes, row boats, small and large “V” hulled. Some are made of wood others metal or fiberglass. The condition of the boats varies as much as the style of boats and materials used in their construction. It would be a safe bet to assume that some of the boats let almost as much water in as they keep out. Regardless, as the tide slowly comes in all the boats left of the dry ground and begin to float at their moorings. Granted some ride higher in the water than others but they all float.
Now consider if you will, that each boat is a business. There are all types of businesses representing different industries. Some businesses are start-ups while others are more mature. The vitality of the businesses varies as much the types of businesses represented. It would be a safe bet to assume some of these businesses are struggling. Regardless, as the economy slowly improves all the businesses will benefit and prosper in varying degrees. A rising tide floats all boats.
This is an import premise to keep in mind today. As the economy slowly improves there will be more real estate coming onto the market for sell. There will be properties that look like they are good investments but in reality are not because they are only profitable during good economic times, when the tide is high. If you are not actively involved in the real estate industry it would be advisable to obtain the assistance of a seasoned professional. Somebody who has weathered the up and down cycles of the real estate market and is familiar with the properties you are considering. With a professional’s help you will stand a better chance of finding the right property … a boat that floats while others are resting on dry ground.