Identifying Intrinsic Value ... Continued

OK, so how do we use this information to accelerate our wealth building? Let's draw up another success triangle... Intrinsic value has three key dimensions, expressed as questions.

1. What is the property's value today?
2. What is its highest and best use?	3. What is its value in the future?

When you know these three things about a property - and when I say 'property', I mean a block of land - then you have an edge over the market... You can begin to forecast the future of property values. And you can begin to identify properties that may be undervalued or under-utilised - often because the vendors and their advisors have not thought through the Intrinsic Value Triangle...

Formulating an exit strategy

Seeing the whole picture of any enterprise means having an exit strategy. No matter what business you're in, or what project you're working on, you need a clear idea of how you'll come out the other side. It boils down to one key question: When you decide to crystallise the potential of your asset, who might be the buyer?

For one thing, an underpinning exit strategy is important when we do our market research, so that we don't over-capitalise on a property. It's also important in funding, as any financier is going to want to ensure that there's a market - with room for a profit margin.

But exit strategy is not just about creating a loophole in Murphy's law and waiting for the worst to happen. Not all exits are escapes... Most are opportunities seized. Potential crystallised. Rewards reaped... And perhaps another door - a way in - opening somewhere else.