Warren Buffett Says Buy Homes Now!
Click the post title above to watch today’s video! Catch all your real estate news and mortgage news with Frank Garay and Brian Stevens here at www.TBWSDailyShow.com!
CLICK HERE for entire Buffett interview with CNBC.
I’m so glad I visited to review this today! I’m
not sure if I disagree with any of it actually … effectively said!
I’ll subscribe for your RSS feed and bookmark your website so I could come back to read even more. Thank you a lot!
Love your video, you guys! Nicely done!
This text is invaluable. How can I find out more?
[...] is link to a video blog we subscribe to that summarizes and excerpts Mr. Buffet’s interview: http://tbwsdailyshow.com/2012/02/28/warren-buffett-says-buy-homes-now/ As always, from a long-term perspective, we think real estate is the buy of a lifetime. And fence [...]
[...] Video: Warren Buffet Says Buy Homes Now [...]
Where else but Real Estate can you invest a sum of money and get an income from it indefinitely with little risk (as long as you keep insurance and are vigilant). If it burns down, you are funded to rebuild. Can’t say that about Enron….
It’s not like hitting the lottery, but it’s the most profitable conservative investment you can make, especially if you’re willing to put in the time to be “hands on”.
Buffett is one of the few people who is actually trying to help others as they are helping themselves. I marvel at how facts are twisted and spoon fed to the masses and so many eat them up! Sure, Buffett is making a great deal more dollars than the average person, so his taxes equal more dollars than most. So what? If one person makes $10,000 and pays $3000, and another earns $10,000,000 and pays $3,000,000, who will still be wealthy and who will be living in their car with no gas?
Over the years, the gap between what the wealthiest make and what the average hard worker makes has been increasing exponentially. Since the wealthiest have been making an increasingly large percentage of the wealth, do we have more jobs? No. The increasing profits have not translated to jobs for America. They translated to jets to visit their overseas factories on the way to their vacation destination. Yet they are shaming people with the “carry your own weight” line and threatening them with the “if you tax us, we won’t have money to hire you” BS. Really???? We will be a healthier nation if we cut off the weakest Americans in an effort to balance a budget that would be easily balanced if the wealthiest payed the same percentage??? That’s socialism?? Really????
This reverse Robin Hood mentality of taking from the poor to the advantage of the rich is dangerous and, if unchecked will lead to an Oligarchy like the world has never seen.
Hey guys,
Where has Farrah gone?
Miss her!!!!!!!!!!!!!!!
As a professional property manager, I manage over 80 single family homes in the Tampa Bay area. Currently, smart investors are buying up many of our really cheap houses and renting them out to foreclosed owners. Currently, about 49% of all area homeowners are under water so we have a great pool of ready renters since those underwater are walking away in droves. Some people end up renting a nicer house than they “own” for less money then their current mortgage payment. So the new investors, (or those who bought when the market was lower 10 years ago) are doing just fine. Our prices will go up again but you can get positive cash flow now unlike in recent years. Some investors are getting 20% on their money with a potential upside on the appreciation. Your market may be different, but I am buying anything I can get 20% return on. You need some balls and cash but I can manage one for you if you like. Self-directed IRA’s are very popular for some of these homes.
Just a comment or two….and a bit of a rant.
Interesting how “investers” seem to be the only ones being taken care of.
This all sounds very familiar. Last I heard over 50% of ALL REOS, Foreclosures were being bought up by “INVESTERS”. (Soros, Paulson and the likes) Dos the general public actually benefit from these spun fixes?
The very people that caused the problems and benefitted from the problems they caused, are now the ones making huge gains, again,now picking up more propertys (in bulk) at huge discounts. Tell me what underwater homeowner or distressed homeowner would not stay in thier home if the mortgage was discounted, or the % rate was half or less than thier current rate? Even with the current underwater scenario? However, You could say in support of investors, Opportunity meets preparedness? Or, is it just stacking the deck? I believe it is the latter….We are all experiencing the biggest ponzi scheme ever perpetrated in the history of the world. Wake up. What is it that you don’t understand about what is happening? Demolishing homes creates LESS housing, which causes rents to go up, which takes more of ones earnings to put a roof over ones head, while commodities (oil, food) are speculated on, which causes higher food prices, which causes more of ones income to just eat, while oil prices are artificially inflated by “investers/Speculators, again” When we have never had more oil available relative to demand. The speculators will never take possession of the oil, personally.. The population remains enslaved and scrambling just to make ends meet….. 25% of the population spends 50% or more of earnings to just put a roof over thier heads…..Get my point? Where do you all think this is going? More of the same? Who is renting those homes out? Who is amassing all of that MONEY? And what are they doing with it? There must be a better paradigm than this one….any ideas?
Best.
ummmm….he said hundreds of thousands IF he could manage them. perhaps he was speaking more to large scale high end investors who could diversify their risk by buying in a lot of different states–reo to rental program comes to mind…if big chunks of 100,000 come out of the shadows in one fell swoop, price stabilization would probably happen more quickly–but not 1 or 2 at a time. given the case schiller numbers that came out today, it is a hard sell to say that leveraged minimum down payment financing is anything but speculative…maybe the new mantra should be “if you live in it, it’s not an investment”—
Buffett for President!
)))
LOL at you guys saying Buffett is so smart and to listen to him on this topic. Of course your right wing leanings mean you think he is an idiot when he says the ultra rich should pay more in taxes, right?
It is this particular nastiness that is erroding the country and allowing the super rich to continue on with their agenda as usual. We, the average man, are too busy with this sophomoric rhetoric to focus on our real problems, how to solve them, and who would be best able to solve them.
Chris Christie is right. Enough Buffet – you want to pay more taxes? Just cut the check. Nuff said. No one is prohibiting he, Gates, etc., from cutting a hefty check to the general fund.
The super rich are composed of both right wind AND left wing leaners. Winfrey, Gates, etc., are so rich it hurts and they are left wingers. Again, if they feel they aren’t pulling their weight, their check won’t sour the checks written by right wingers. It will just make for a spicier soup.
I am right wing, I am responsible for myself first and foremost, and I contribute to my country and my fellow man. Because I don’t believe every dime I make should be redistributed doesn’t make me a villian – it makes me less of a sucker.
I so don’t care about any of that stuff… here’s what I know. He’s very rich and he says now is the time to buy. So now I can take that message to the street and encourage people to buy so I can make money. I’m a very simple person.
~ Frank
I have been telling people this for the past year. It is always smarter to buy at the bottom of the market. Inflation hasn’t affected the housing market yet. When it kicks in then those who buy at the bottom will make tons of money and better yet will curb inflation. The price of everything is going up because of inflation. Housing will follow suit, once the foreclosures are gone housing will start to go up very quickly.
Warren Buffet claims his bank was “Victimized” by foreclosed homeowners?
http://www.bloomberg.com/news/2012-02-27/buffett-says-banks-victimized-by-evicted-homeowners-who-emerged-as-winners.html
In Warren Buffett’s report, in article published on 2/27/12 entitled
Buffett: Banks Victimized by Excesses of Ousted Homeowners
http://www.bloomberg.com/news/2012-02-27/buffett-says-banks-victimized-by-evicted-homeowners-who-emerged-as-winners.html
“Large numbers of people who have ‘lost’ their house through foreclosure have actually realized a profit because they carried out refinancing earlier that gave them cash in excess of their cost,” Buffett, chairman and chief executive officer of Berkshire Hathaway Inc. (BRK/A), said Feb. 25 in his annual letter. “In these cases, the evicted homeowner was the winner, and the victim was the lender.”
This is the frustration of those who think short sellers got the best end of the stick. This is the perception most have, but perhaps not the reality now. There’s no debate that there were many that did tap out their homes.
However, a larger number of underwater homeowners who have not made out, and are at the end of any assets they have, have given up on hanging on and are opting to get on with life, but with no option except a short sale.
The ironic twist is that these underwater homeowners are required to become delinquent in order to get bank short sale approval. They are then called strategic defaulters, or those who “chose not to pay even though they can”. En masse, we are labeling these underwater homeowners as strategic defaulters, the last thing they want to be labeled, but they have to follow the rule to sell their home. There is no winning for underwater homeowners.
You know, strategic defaults aren’t anything new. The hell of it is the people who bought in 2006 onward are truly underwater. They didn’t even get a chance at the mortgage ATM because if they had any equity they have lost it.
People have been handing keys back to the banks for years and years. We just have a horde of them now. I work with people every day where it looks like on paper they can pay the mortgage but the reality of life is they really can’t.
Thanks for posting, great stuff! Thanks for speaking slowly and at a good pace, I really like how your show has evolved. People definitley need to listen to Warren Buffet!
Guys, where can I get the Warren Buffet video? I cant find it on YouTube.
There’s a link right below our video that says “Click Here for entire Buffett interview with CNBC.”
Hipo
Try Saturday Nite Live.com
Thanks! Btw- I worry that the agencies’ REO to rental program is going to depress rents and thereby hurt individual investors. When you have a wealthy out-of-the-area landlord who doesn’t know the local market, guess what they’ll do to keep their investment from laying vacant? Those lower rents will also erode the motivation of most of today’s FTHBs. So at the end it’ll hurt sales too.
uuuuhh…so, one of the richest men in the world says he doesn’t have a way to buy single family homes? Somethings wrong with that comment!
No, listen again. It’s the management of them. 100,000 if them was his example.
Personally I think he could open up a new business and furnish it with lots of jobs.
Hey guys – can’t see video with my EVO – you guys made any apps yet?
Not yet, but we are going that direction.
Investing money USED to be thought of as a long term investment for maximum gain. The Boom made people believe if a house didn’t double it’s value in a year or two then real estate isn’t worth it. WRONG.
The current situation we find ourselves in is temporary. Yes, temporary. Real estate markets don’t operate normally the way they did in the boom or the way they are now. This is due to problems that occured that housing really had nothing to do with, yet it affects everything connected to housing right now.
I don’t believe Warren is suggesting you run out and buy the most expensive house in the neighborhood like you would have 5 years ago. I think he would see the wisdom of *shocker* buying the least expensive house in a really good neighborhood, or buying a mid level house at a value in a really good neighborhood.
I bought a fixer upper in a good neighborhood for less than half of what the better house would go for. I fixed it up to the level of the better house with very little cash out of pocket. Guess what? I rented it in 3 days with several people vying for the house I got $100 a month more than I asked. They locked into a 2 year lease with an increase in year 2 and this house is way more less than they could truly afford. Perhaps renters are seeing reason now, too.
The point? I can rent this out for top dollar, recovering my investment (the GRM at this point is 58) and still make money once the market covers all of my investment (purchase and rehab) through monthly rentals.
Oh, the GRM for all of you not familiar? That’s how many months to get my money back, so here we have less than 5 years. That’s the point of residential real estate investment. Someone pays it off and you make income and appreciation over TIME. That time not being the blink of an eye, but rather a reasonable time.
That’s why Warren is filthy rich and most everyone else isn’t. He will bide his time and he knows from personal experience that time grows money more than any other factor.
Great show guys!
Well said!
Helen:
Mr. Buffett has amassed his enormous wealth by being able to spot, identify and wait for the walking wounded in the corporate world.
‘Wait’ is your operative word here and ‘wait’ depends on *you guessed it* TIME.
Whatever vehicle you use for your wealth, time is the biggest factor. He identified these companies but it took time not only to acquire them but to grow his portfolio above and beyond the initial grab of the walking wounded. The wounded wouldn’t have been wounded had they done better business. There are people like Buffet everywhere and they make loads of money, but maybe just not the billions Buffet has.
I don’t need billions to live on after I retire, but a few million is well within the realm of reality.
Use Buffet as a role model, study him, and move forward. You’d be surprised the strides you and other would make with a change of mindset.
Great Post! Now that”s how you hook um’ up.
Greg
I truly don’t get the “negative nellie” comments already … Warren Buffett was giving advice asked for, and freely gave it. In light of his vast wealth and his enthusiasm to get things going FORWARD again, great advice from a sage of finance!
Nick and Jetcat, are you guys for real? He said that last year and was wrong? First of all, there are many markets which have seen increases in an overall weak market and Buffet is talking about buying before prices go up based on current and potential future factors, which we all know they will. Quit being naysaying idiots. What do you need, god himself to come back and tell people to buy?
Mike:
Just tried to say be careful. The market conditions are changing and we have no clue what direction. Mr. Buffet has a little more residual income to play with than most of us.
Can’t wait for “someday” and “eventually” to get here… Timing truly is everything in life.
Mr. Buffett is also the B.O. GURU that says Americans should pay more Federal Income Taxes…if the mortgage tax credits go away and an increase of income tax takes effect…Be careful.
Buffett said the same thing last year and was wrong…. Maybe this time he will be right but his BAC and GS buys are not working very well either. It is a good thing that he can get a big dividend to wait unlike us average investors.
Be careful what really rich and smart investors tell you. Most of the time their words only benefit them at your expense.
TOP COMMENT!!
Well said and don’t forget that you have to hire a secretary that gets 200K. Just one of the little people that pays more income tax than Mr B. Listen and learn. He can’t keep a secret…
How exactly do you pay more income tax than Buffett? A 200K secretary isn’t necessary but we don’t know what that secretary does that Buffett feels the salary is compensation for efforts made.
If Buffet only pays 5% of his total earnings in a year towards taxes, that is likely enough to power a handful of small town governments 100%. I think the last tally was 18% of his annual earnings and I can guarantee you that any of us paying his one year’s taxes in a lifetime is not even remotely close.
The super rich pay a lot of actual dollars. Nevermind the percentage. Imagine the sheer dollars. Dollars is how the average person thinks, so think dollars. Giving the percent dumbs the real number down. So, if he made $100 million dollars last year, that is $18 million dollars in taxes. I think he likely paid more than his fair share for being successful.