To be able to judge whether we have overproduction in housing facilities, the operator must be in touch with immigration, with the natural growth, and the increased demand through marriages, etc.; also with the class of dwelling needed; whether we have too many high-class and too few cheap apartments; whether the scale of wages permits paying for better facilities, etc. All of these things are not the result of guess work nor chance, but of constant study, careful observation and application. This study also discloses the extravagances of a community, thus regulating the rentals of shops and stores, especially on select streets, such as Fifth Avenue and its side streets. As the land value is regulated by its income-bearing possibilities the wealth of the community is an important factor.

The financing of real estate is extremely important. It is, at times, complicated, depending largely on the class of real estate dealt in. This will be discussed later.

I have attempted to show how, largely by comparison, one arrives at real estate values, and why I put foresight and imagination first in my list of requisites.

Real estate operators can be divided into six classes: Those who deal, 1st, in business property; 2nd, in private residential property; 3rd, in apartments or flat property; 4th, in vacant land generally or land adapted to any specific purpose; 5th, in factory and stable property; 6th, in all kinds of real estate. Each class has its own peculiarities. The general rules which I have outlined apply to all classes.