The 5th Element – Your “Product” (Warren Buffet Essential Elements to a Real Estate Investing Business Plan)

One of the things that Warren Buffet said, that any entrepreneur investing in real estate should remember is: “We are willing to hold a stock indefinitely so long as we expect the business to increase in intrinsic value at a satisfactory rate . . . we do not sell our holdings just because they have appreciated or because we have held them for a long time.”

With television programs such as House Flipping so popular, many real estate investing entrepreneurs imagine that the real estate game is all about flipping properties very quickly.
That’s not always true.

In many instances, successful investors have created enormous fortunes by real estate investing over the long term.  That is, some of the biggest success stories have bought commercial real estate, marketed it better to increase the vacancy rates, and are generating a large, steady income while building their net worth.

For you, this where you need to clearly outline the types of “product” you’ll be investing in, the length of time involved for each type of real estate, and the proposed exit strategies along each step of the way, with a focus for long-term wealth creation.