Warren Buffet says Buy Buy Buy!
In February 2012, Warren Buffett was featured on CNBC live and asked what his opinion of the real estate market was. His response?
“If I had a way of buying a couple hundred thousand single-family homes I would load up on them.
It’s also interesting to note that Warren Buffett made his money in securities, but still believes that real estate is a smarter and safer move than the stock market right now.
Should we buy multiple houses?
“Because of the absence of many of these big institutional investors in the U.S. residential real estate market, it is less competitive than the stock market,” Buffett said. “When institutional investors of size do enter the residential real estate market, they usually go for apartment buildings, which leaves the single-family homes segment even less competitive than the general residential real estate market.”
When asked if a young individual investor should buy stocks or his first single-family home, Buffett recommended buying a single-family home with a 30-year mortgage.
“It’s a terrific deal,” he said. “It’s a leveraged way of owning a very cheap asset now and I think that’s probably as an attractive an investment as you can make now.”
In fact, if the young individual investor is “a handy type,” he could “buy a couple of them at distressed prices and find renters,” said Buffett. Don’t worry if you aren’t the handy type. It’s actually more cost effective to use our full service features. We can create a comprehensive rehab budget and plan for you and connect you with our trusted contractors that can stay within a budget and strict time frame to make improvements on a distressed property. Heaton Dainard is a full service real estate firm that will help you purchase, fund, rehab and execute an exit strategy.
Buffett is famous for only investing in assets he believes are undervalued. He must, therefore, believe that the U.S. residential real estate market is undervalued. Listen to one of the smartest investors of our time and take the opportunity to pick up some new investments in 2012. It’s a great time to buy a cash flow property. We can get approved through a short term bridge loan for a discounted rental property through our owner affiliated lending company, Intrust Funding and convert you to a traditional mortgage at these great rates quickly and easily. If you would like more info, please contact Will Heaton at 425.466.6878.