The Birmingham age-herald., 1923-11-04
History Of Market Proves More Mistakes Made In
 Immediate Selling

"If the usual care is taken before making an investment" said Ed Allen, vice president of the Motion Realty company, "an investor can not make a mistake in purchasing Bir mingham business or semi business property. It is only necessary that the property be bought on such terms that it can be held safely-the wise investor always following this rule.
 History of the Birmingham real estate market has proven conclusive ly that more mistakes have been made in selling immediately after the pur- chase has been made than in hold ing the property as an investment for a reasonable time. Of course, there IS limit to which property should be held. It might be wise for the in vestor to sell at the present time, and reinvest his profit in another piece of property with expectations of increase in other property. Gircum- stances of the investor and uses he has for the money are large factors in making decisoions to sell, but at any rate, it is hardly wise to expect or take an immediate small profit"
 In citing some of the concrete examples of increases in Birming ham property, MT. Allen mentioned a piece of business property sold in 1919 for $32,50o. By the time the purchaser. had received the deed for the land, he decided it was not as good as he at first had thought and stated he was willing to take a small profit if sold immediately and quoted a price of $37,500 on easy terms. Shortly after we were able to offer s36,500, but the owner held out and no trade was effected. Within a few months we offered $42,50O, which he declined, and two years after the original purchase we offered S50,OoO, which was also declined. Ad- vices which have come to is state that s65,000 has been offered for the same property. This same piece of property is now paying 13 per cent on the original purchase price.
 Another instance" MT. Allen stated, Twas that of a corner close in, which sold in 1920 for $110,000. The pur- chaser immediately spent $25,000 in improvements and obtained a rental of approximately S15,000 per year a from responsible tenant. We sold this building in 1923 for $225,00O, and the present owner has been offered a substantial profit"
 Another large increase has been noted in a building which was sold Is months ago by the Motion Realty com pany, MT. Allen pointed out, for $33.- 00O It immediately sold for 10000, and is now being held for S60,00o.
 In another piece of property that was bought in 1920 at S57,000, con- sidered at the time a top price, the property being leased for five years at the same rental, which paid a fair return. In 1923, this property was sold for S112,500 at the same rental obtained as at the~ commencement of the lease. In 1925 the purchasers ex- poet to double the rent, and the prop erty will bring it.
 Birmingham, of course, experi- ences boom periods, in which the spectators buy and sell actively" said MT. Allen, This means that prices rise rapidly and when the boom has run it's course, a period of stag nation sets in. It has been proved, however, than even should the in- vestor purchase during the boom at the highest figures, having bought on safe terms and being able to hold the property, the period of stagnation will run its course and on the next boom period, the highest prices that prevailed during the first will be the starting point in. the next. this be- ing in direct contrast to stocks and bonds under the same circumstances.
 Our advise is to invest in Birming- ham business or semi prop erty and do not buy with expectations of immediate profit, but with expecta- tions of selling at most the propitious time. Buy it on such terms that you can afford to hold it until you deem it wise to sell. and do not buy be- yond your means"