Posted almost 9 years ago

7Ps will create Your 3Ps

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The world as one can see is created by organizations that control you and your hard earned money and have three letters as to their notoriety and how money is central to their cause directly or indirectly but this is of course subjective.

However, one can recognize these organizations by their acronym as the IRS, FBI, CIA, NSA, FTC, and FCC although they provide a service in the USA; there is of course the BBB and the REI -- these organizations provide opportunity by being accountable though honesty and integrity...so how does the 7Ps create your 3ps? The definition for 7ps is preparation, pre-planning, planning, post-planning, pricing, precision, and productivity which creates opportunity for the real estate investor as perpetual profitable properties.

Why Hybridization Creates Multiple Incomes

The keyword hybridization; if you Google that word it will take about 14,500,000 results (0.38 seconds)... if you go to Wikipedia for the definition you would find numerous uses for hybridization as a disruptive innovation

Hybridisation (or hybridization) which may refer to:

Hybridisation (biology) the process of combining different varieties of organisms to create a hybrid
Nucleic acid hybridization, the process of joining two complementary strands of nucleic acids - RNA, DNA or oligonucleotides
In chemistry, the mixing of atomic orbitals of different energy to obtain homogeneous orbitals of the same energy (Orbital hybridisation)
In evolutionary algorithms, the merging two or more optimization techniques into a single algorithm
- Memetic algorithm, a common template for hybridisation
In linguistics, the process of one variety blending with another variety
The alteration of a vehicle into a hybrid electric vehicle
In Globalization theory, the ongoing blending of cultures
Hybridization in political election campaign communication, the combining of campaign techniques developed in different countries
In paleoanthropology, the controversial hypothesis of Neanderthal and human hybridization

Investopedia's Definition and Disruptive Innovation for Real Estate Investors

Both real estate funds and real estate investment trusts (REITs) are used when diversifying a long-term investment portfolio. A real estate fund is a type of mutual fund that primarily focuses on investing in securities offered by public real estate companies. The majority of real estate funds are invested in commercial, and corporate properties, although they also may include investments in raw land, apartments complexes and agricultural space. This type of fund can invest in properties directly or indirectly through REITs

A REIT is a corporation, trust or association that owns or finances income-producing real estate -- a hybrid concept.

Their mode of operation is similar to that of a mutual fund where investors combine their capital to buy a share of commercial real estate and then earn income from their shares. REITs’ taxable income is paid out as dividends to their shareholders, who then pay income tax on the dividends.

There are three main types or REITs, equity REITs, mortgage REITs and hybrid REITs. Equity REITs own, operate and trade hard real estate assets; Mortgage REITs trade commercial and residential mortgages; hybrid REITS are a combination of equity and mortgage REITs. The majority of revenue associated with equity REITs come from real estate property rent, while the revenue associated with mortgage REITs is generated from interest through mortgage loans.

Investments in both REITs and real estate funds have their benefits and drawbacks. The benefits of investing in REITs include their lower investment entry costs insofar that investors can invest as little as $500 or the price of one share; secondly, REITs offer a highly liquid method of investing in real estate; thirdly, REITs are highly flexible, allowing investors to invest in a range of real estate from commercial properties to shopping malls.

Real estate funds that invest in mortgage REITs provide higher yields than real estate funds that invest in equity REITs. Conversely, as equity REITs trade on assets and not on mortgage loans, capital gains are instead far more attainable for equity REITs. Mortgage REITs don’t offer as much capital gains as equity REITs because an earned capital profit cannot be attained on a loan. Mortgage REITs’ potential for capital gains are correlated against interest rates, as the higher the interest rate, the greater the gain. Conversely, the opposite also applies. If mortgage rates fall, the REIT receives diminished interest payments and thus suffers a loss of expected income. As REITs generally deliver more of an income, neither provides long-term capital appreciation. On the other hand, real estate funds that are not invested in REITS can offer capital appreciation and fund value appreciation.

Real estate fund investments allow investors to reap the same benefits they would if they were investing in a mutual fund, as they receive the same professional and portfolio management support. Real estate fund investments with direct real estate investments invest in assets while real estate funds that invest indirectly invest in REITS. An investor is, however, able to choose whether to invest in a real estate fund (that may or may not invest in REITs) or invest in REITs directly.

Investopedia on Facebook

In 2010 and 2011, almost 50 percent relied on hybrid models vs. 37 percent in 2006. These entrepreneurs sought to address social issues in domains as diverse as hunger, health care, economic development, environment, education, housing, culture, law, and politics. This recent increase in the number of hybrids results in part from social entrepreneurs’ willingness to be less dependent on donations and subsidies, as well as from an increased interest in creating sustainable financial models in the wake of the 2007-08 financial crisis.

The hybridization of organizations for commercial and social sectors has long been governed by an assumption of independence between commercial revenue and social value creation. For more than a century, activities necessary to create commercial revenue, it was assumed, could not substantially affect or improve on social welfare, and vice versa. Thus most organizations that sought to pursue social value and commercial revenue simultaneously pursued differentiated strategies. Now the real estate investor can have both possible worlds in the palm of his/her hands (http://ssir.org/articles/entry/in_search_of_the_hy...)

7Ps will create Your 3Ps

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