The use of the term “soft economy” refers to the accurate fact that we are a cyclical economy. There are four parts to a complete economic cycle: (1) The downturn (i.e., soft economy). (2) The bottom. (3) The upturn. (4) The top.

Drawing on the history and averages of past economic cycles, a holding period of five-to-seven years is an appropriate plan. That presumes a qualitative due diligence analysis of the property has been completed. Without such an analysis, a holding period of twenty-five years or more might be an appropriate plan.

It would only make sense during this period of a soft economy to take advantage of NetGain’s Economic Valuation System (EVS), the leading due diligence program on the Internet. Following are eleven of the over one hundred categories EVS uses to recommend a specific action for the subject income property: Migration, Earnings Per Capita, Retail Sales Per Capita, Home Ownership Affordability, Unemployment, Job Creation, Rent Control, Legislative Environment, Permits Issued-Dollar Value, and Number of Construction Starts.

Registration for access is free and the system is easy to use. NetGain is also happy to respond to any questions concerning EVS or income property valuation.