Legendary investment guru Warren Buffett is making big bets on real estate, so what real estate education tips can be gleaned from his latest strategies?
Buffett has been invested in real estate for decades with his mobile home business Clayton Homes being one of the best performers throughout the recent crisis. Following on from previous successes with Clayton and expansion through HomeServices of America Warren has recently made moves throughout North America and most recently in buying a real estate franchise from Prudential and lending the Berkshire Hathaway name to it.
So what real estate education can be picked up from Buffett?
1. Real Estate Investing is the Way to Go
Clearly all of these moves confirm that you are on the right path with real estate investing and now is definitely the time to go all in if ever.
2. Buy Your Own Home
After the wedding rings Warren bought for himself and his wife he still calls his home the best investment he has ever made. So if you don’t own a home get one.
3. Buy a Franchise or Sell One
Buffett put his decision to buy this franchise down to being cheaper and faster than building one from the ground up. This has some merit but also its limitations as well, not to mention being out of the financial reach of most. Perhaps a better option is to craft your own business the way you want it and sell franchises for big bucks and ongoing royalties.
4. Hire the Best Possible Staff
Another major reason Buffett has gone this route and Berkshire Hathaway has been so successful for so long is the mission to lock up the best possible talent and management teams.
5. The Secret Formula for Investing Success
Warren Buffett’s investment strategy or motto has served him well for decades. Applied to real estate investing this can be translated as focusing on buying great properties in good locations at fair prices.