Warren Buffet’s annual Berkshire Hathaway Letter to Shareholders reveals some investment insight gained from real estate. However, Buffet stops short of sharing a few key concepts that are significant to today’s investor.
Sand Diego, CA - The annual Berkshire Hathaway letter from Warren Buffet was released over the weekend, and as usual the legendary investor had some thought provoking nuggets of wisdom to share.
However, while he talked considerably about a few of his past forays into real estate, Buffet didn't deliver on a few core concepts that could be invaluable to the average real estate investor today.
Illustrating his point by sharing stories about a couple of small real estate investments he made in the 80s, Buffet kept it simple by advising investors to “keep things simple”, turn a deaf ear to the market predictions of others, avoid speculation, and just pay attention to the future productivity of the asset under consideration.
What Buffet didn't talk about, though, and quite possibly of more importance to real estate investors according to Real Estate World Wide (REWW) CEO Kent Clothier, is that real money is made in real estate when acquisition is made easier and the investor “buys right.”
REWW, a real estate education company, specializes in real estate investment training and systems that help investors contend in an increasingly competitive market.
According to Clothier, real estate investment today is full of upside potential, limited risk, and a multitude of options.
Investors can sell the purchase contract, which is called wholesaling, they can rehab the property and resell it on the retail end of the real estate market, or they can keep the property and rent it out, or allow it to produce as it had been, thus generating cash flow income.
“Buying right”, though, is typically dependent upon the seller and how strongly the situation at hand is motivating the sale.
While there are a number of factors that lead to seller motivation, a vacant property is, according to statistics, one of the biggest. “If a property is sitting inactive”, says Clothier, “it is very likely losing money. The owner needs to rent it or sell it to stop the bleeding”
However, finding vacant houses has not always been an easy task. In fact, in the past, unless a property was boarded up, it took a tremendous amount of legwork and research to find out if a property was empty or not.
That is, according to Clothier, until now.
Clothier and his team at REWW have created Find Motivated Sellers Now (FMSN), a system that was developed to identify high equity or free and clear properties that are sitting vacant, thus allowing savvy investors, and real estate agents, to identify ideal properties, contact the owners, and make an offer to buy or list the property before anyone else sees it.
Those investors who are using the system speak volumes about its usefulness, saying that for the first time, they are getting a first mover advantage.
Claude M., a long time investor and FMSN user said, “With this system, I know when a house is sitting vacant and I can act on it before it ever even gets listed; I know about these deals before anyone else does.”
As Buffet said, real estate is a sound investment vehicle regardless of market conditions; nonetheless, those opportunities must be accessible. Having the right system in place, says Clothier, “makes all the difference in the world.”
About Kent Clothier
Kent Clothier is President and CEO of Real Estate World Wide (REWW), a multi-faceted real estate education company with headquarters in Scottsdale, Arizona; San Diego, California, and Boca Raton, Florida.
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