This post is all based on one simple quote - and it was the secret to Warren Buffett's billions:
"Buy wonderful companies at fair prices instead of fair companies at wonderful prices"
It's from Berkshire Hathaway's annual report and is the advice that a young Warren Buffett received from Charlie Munger almost 60 years ago.
And by following that advice, Mr. Buffett built the 8th largest company in the world worth almost a trillion dollars.
It wasn't a get-rich-quick scheme. It wasn't by day trading or bitcoin mining. It was by acquiring good assets at fair prices and holding them long-term.
I think that philosophy also applies to real estate as well. You may be able to make a quick dollar by underbidding on hundreds of properties just to get one property at a discount (which is exactly what Mr. Buffett was trying to do with businesses).
It may seem like a good idea on the surface, but having bought several properties at seemingly amazing prices, the deals are rarely as great as they seem on paper.
What I've personally found is that the fantastic properties are rarely sold at a significant discount, and that's a good thing too. It means that when YOU want to sell the property, you'll get top dollar for it too...
So, what's the lesson I learned from Mr. Buffett this week?
"Buy fantastic properties at fair prices."
Now, how do you find fantastic properties?
Start with the location - and BTW, it's hard to find a better metro to invest in than Salt Lake City...
Dial down a little further on location - look for a neighborhood that is stable or on the rise. You really want the local dynamics to be favorable to a long-term hold, so the last thing you want is an area that is on the decline.
Find a property in good condition with a solid history of rental income. Of course, every property needs maintenance and occasional upgrades, so make sure you're looking past the finishes.
Of course, that's exactly what we do and you can take advantage of our expertise in the field and presence in Salt Lake City. Interested in investing with us and letting us do all the work? Schedule a call to discuss.
Don't wait to invest in real estate - invest in real estate and wait!!
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