386 - FROM THE VAULT: Real Estate Investing
InvestED: The Rule #1 Investing Podcast
00:00
How to Buy a Building Cheaply
Buffet originally got ten % on this building, with the rent as it was ok. With 20 % of it at five dollars a foot, in a 70 dollar market, that produced a 10% return. So if buffet could get it at that price that produced a ten%, then he would know that nine years later, when he rents out that 20%. The value of this building is going to explode. And all he has to do is do the math to see that getting ten % a year and raising rents over time gives you a phenomenal rate of return.
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