- Investment Opportunities
- Media
- FREE Training Videos
- Mortgage Investing
- Video Series – Into To Hassle-Free Cashflow Investing Philosophy
- INTRO PART 1 – Intro To Hassle-Free Cashflow Investing
- INTRO PART 2 – Learning real estate investing vocabulary
- INTRO PART 3 – Get Higher Returns with Less Invested
- INTRO PART 4 – Getting From Where You Are To Where You Want to Be
- INTRO PART 5 – Taking The Hassle Out Of Your Real Estate Investing
- INTRO PART 6 – Formulas – Using Arbitrage To Increase ROI
- INTRO PART 7 – Understanding Leverage Ratio
- INTRO PART 8 – Calculating ROI Using Leverage Ratio And Arbitrage Spread
- INTRO PART 9 – Increasing Arbitrage Spread Magnifies ROI
- INTRO PART 10 – Property, Location, Team, Financing, and Expectations
- INTRO PART 11 – How To Make Money With Real Estate Investing
- INTRO Part 13 – Are Passive Investments in Real Estate Right for You?
- Video Series – Real Estate Math
- Lesson 1 – Calculating Return on Investment
- Lesson 2 – How and When to Use ROI (return on investment)
- Lesson 3: Calculating Gross Scheduled Income, Adjusted Gross Income, Net Operating Income
- Lesson 4: Calculating Operating Expenses
- Lesson 5: Calculating Capitalization Rate
- Lesson 6 – Calculating Interest Rate
- Video Series – Real Estate Investor Training Webinars
- Secrets of Self-Storage Investing
- Real Estate Collection Agency Secrets For Improving Your Real Estate Profits
- Chasing Infinite Returns with Real Estate Investor Financing
- How to Build Your FICO and Use It for Real Estate Profits
- Cash Management Strategies for Real Estate Investors
- Partnering for Profit
- Introduction to NNN Lease Commercial Real Estate Investing
- Cashflow Investing for Prosperity and Happiness
- Cashflow Investing Strategies for Recessionary and Inflationary Times
- Creating Your Life By Design
- Keys to Successful Property Management
- Tackling Success: From the NFL to Professional Investor With Professional Athlete Terrence Robinson
- Strategies for Protecting Your Income and Wealth from Rising Inflation
- Video Series – Tax / Accounting / Self-Directed IRA Investing
- A Real Estate Investor’s Comparison of IRA, ROTH IRA, and 401(k)
- Tax Planning Strategies For Cashflow Real Estate Investors
- Year End Tax Strategies for Business Owners and Real Estate Investors
- Using A Self-Directed IRA to Create Hassle-Free Cashflow
- The Ultimate Tax SmackDown Event: Solo(k) versus IRA
- Back to Basics Bookkeeping For Real Estate Investors and Business Owners
- Using A Self-Directed IRA When Your Income is High But Your Balance Is Low
- Taxmaggedon: tax strategies to Protect Yourself From Tomorrow’s Taxes!
- Creating Powerful Retirement Accounts for Business Owners & Real Estate Investors
- Falling in Love with Real Estate Bookkeeping
- Real Estate Investor Tax Deductions and Investing Strategies
- Why Do Hassle-Free Cashflow Investors Love Texas Real Estate
- eBooks
- Hassle-Free Cashflow Investing Secrets
- Hassle-Free Cashflow Lending Secrets
- How to Avoid UDFI Taxes When Investing in Real Estate with your IRA
- Eight Best Kept Secrets About Investing with your IRA
- A Guide to 1031 Exchanges
- Top 20 Things Every Business Owner Needs to Know
- Recordkeeping: Keep the Receipt or Lose the Deduction
- Managing Your Properties with QuickBooks
- Powerful Cash Management Strategies
- 17 Steps to a Successful Joint Venture
- Get a Fast Fifteen Points on Your Credit Report
- 12 Warning Signs You’re Headed For A Lawsuit With Your Partner
- choosing entity type
- 8 Steps to a Payment Agreement
- Negotiate Better Lender Terms
- Foreclosure Process
- Blog
- Contact
Warren Buffett’s best investment? – the single-family home!
By David Campbell On 03/15/2012 · Leave a Comment · In Cashflow Investing, Investment Training, Training Video
Warren Buffett’s best investment? Now it’s the single-family home!
Warren Buffett, chairman and CEO of Berkshire Hathaway, is widely regarded as one of the world’s most successful investors. He recently appeared live on CNBC’s Squawk Box program, Monday, February 27, 2012, for his annual “Ask Warren” three-hour marathon. Among the many topics covered was the housing market. Here is Warren’s latest advice on investing in that area.
Buffett began by pointing out, “…equities are still cheap relative to any other asset class,” but added, “I would say the single-family homes are cheap now, too.” He then made this startling statement:
“If I had a way of buying a couple hundred thousand single-family homes… I would load up on them.”
He admitted that he would need a way to manage so many residences: “… the management is… really the problem because they’re one by one. They’re not like apartment houses.” But if it were practical, he would “load up on them and I would take mortgages out at very, very low rates.”
He then offered an insightful summary of the current situation in the housing market: “If anybody is thinking about buying a home — five years ago they couldn’t buy them fast enough, because they thought they were going to go up, and now they don’t buy them because they think they’re going to go down. And interest rates are far lower.”
Keying off the low mortgage interest rate situation, he pointed out:
“It’s a way, in effect, to short the dollar, because you can take a 30-year mortgage and if it turns out your interest rate’s too high, next week you refinance lower. And if it turns out it’s too low, the other guy’s stuck with it for 30 years. So it’s a very attractive asset class now.”
Buffett was then asked, point blank, if he were a young individual investor who had to choose between buying a first home or investing in stocks, which one would be the better bet? His characteristically direct answer:
“…if I knew where I was going to want to live the next five or 10 years, I would buy a home and I’d finance it with a 30-year mortgage and it’s a terrific deal.”
He followed that with this business idea:
“… if I was an investor that was a handy type, which I’m not, and I could buy a couple of them at distressed prices and find renters — and again take a 30-year mortgage — it’s a leveraged way of owning a very cheap asset now and I think that’s probably as attractive an investment as you can make now.”
And a final note: Buffett wrote in his latest letter to Berkshire Hathaway shareholders: “Housing will come back — you can be sure of that.”
Check out the video: