Eight Warren Buffett Quotes Applied to Net Lease Real Estate Investing
Who, in the business world, hasn’t heard of Warren E. Buffett and the Berkshire Hathaway (NYSE: BRK) empire he has built over the last half century?
Although he’s the second richest man in America with a net worth of $59 B (next to Bill Gates’ $72 B), Warren lives a modest lifestyle. He is known for being courteous, personable, and humble. Warren still drives himself to work And lives in the same house he bought in the 1960s; one of only two homes he and his wife own.
So, how can a real estate investor benefit by applying some of the attributes to Buffet applies to his life and his investments? Here are ten popular Buffet quotes that can help us with our triple net lease commercial real estate investing strategy.
1. "Rule No.1: Never ose money. Rule No.2: Never forget rule No.1".
Easier said than done? Warren believes in buying based on value not its market price. He does not speculate or gamble. He focuses on investments based around companies with sound fundamentals and extensive due dili- gence review and analysis to make sure he knows an investment’s value. Net Leased investments fit the investment mold of Warren’s philosophy. If a credit tenant occupies a property and there is a fixed long-term rent, then the risk of losing money significantly diminshes.
2. "Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
This is a great strategy for buying real estate investments. This means only buying properties that will grow and succeed in the foreseeable future regardless of the market, such as a property with a long term credit tenant and a great location. Great real estate almost always succeeds in the long run. It is too often that investors buy property to flip based on speculation and they get burned.
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