Serious investors take time to research information they can find from billionaire investors that have strategized well. However, most billionaires are not sharing much about their personal investments or offering excellent insight into how you can really maximize your investments.
Except billionaires like Warren Buffett, as his annual letter to Berkshire Hathaway shareholders addresses several of his own investment strategies – real estate included.
The following are some key insights Buffett shares for anyone interested in investing in real estate investing:
- Invest in real estate that is undervalued
If you have been listening to me you already know that a good real estate investment deal is property that is undervalued. However, many people are missing out on such properties because they’re not constantly on the lookout for such. They want the great deals, but they’re not being vigilant on all fronts regarding finding them. Buffett mentions in his letter that one of his acquaintances happened to tell him about a New York property that was available to purchase. The property was undervalued, so Buffett went ahead and purchased it. See, people know that Warren Buffett is a serious investor, so when they come across what they feel is a great deal, they’ll get word to him.
You want to have the same kinds of experiences. The best way to do that is to be sure to get the word out to your friends, coworkers, and acquaintances that you’re a serious investor. The more people that know who you are and what you do, the more likely you’ll get some word of mouth referrals.
- Keep investing
The markets can be volatile, but Buffett says to stay calm and keep investing regardless. He says too many people get scared and get out of investing, rather than stay in it for the long haul. This goes for the stock market and real estate investing. He says when others are scared, clothe yourself in confidence and get out there and invest wisely. If the market dips, there will be more motivated sellers out there, so rather than get fearful and pull back, that’s a great time to get out there and find those motivated sellers.
- Work for a stellar reputation
Buffett says, “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” As a property investor, it’s important that you work for a stellar reputation, because your rep matters. This means that every day you put on a smile and go to work for those who have a “house for sale” problem that you can solve. You have the perfect solution for motivated sellers and you go about your business in a kind and ethical way – always. This affords you a wonderful reputation that will continue to help your business over time.
- Discipline and patience are virtues
Buffett says, “Successful investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time: You can’t produce a baby in one month by getting nine women pregnant.” Granted, it doesn’t always take a long time to acquire wealth in real estate investing. You can make big bank in real estate investing in a short time, but even then it takes discipline and patience to see the fruits of your labor. Therefore, be sure to be patient, methodical, and disciplined in all your business endeavors, for these are surely keys toward success.
- Keep learning
Buffett continues to learn, even after 50 plus years of investing. He doesn’t think he knows it all; in fact, he knows he doesn’t, and he’s willing to invest in time reading and learning every day. He loves the learning process and if you want to be the type of investor that Buffett is – a successful one – take time regularly go over your materials and re-watch the videos. You will discover new key insights each time you do.
It’s worth it!