Investors Face Uncertainty: Where Should You Allocate Your Funds?

Over the last decade, we’ve all witnessed how rising tides have transformed amateur real estate investors into professional real estate gurus. But as Warren Buffett once famously noted: “Someday the tide will recede; then we’ll know who was swimming naked.”

Well, someday has come.

Are You Swimming Naked in a Submerging Tide, or Huddling on the Beach With an Extra Layer? A quick survey of real estate investing news reveals a great deal of bare skin, as well as reports of many investors flocking to beaches for investment properties.

But that doesn’t mean retreat. Sound investments with strong profit potential are available right now–if only you know where to look. I will demonstrate this shortly.

Real estate investors have seen suspended distributions, capital calls and losses abound – something BiggerPockets strives to educate investors on in its educational programs relating to due diligence and diversification – this phenomenon underlined BiggerPockets mission statement of spreading due diligence knowledge among investors (which will be covered separately later).

You, Too, Can Invest Like Buffett
Had we invested with Warren Buffett decades ago, Berkshire Hathaway stock would likely have lost over 97% in value but still outshone the S&P 500 over that same time frame. Unfortunately we don’t possess time travel abilities so we cannot invest with him in 1965; but there may still be opportunities to follow his lead–particularly during challenging economic times like these.

Buffett often conducted his most lucrative deals over dinner, with handshakes and brief handwritten notes exchanged. Another one happened over 15-minute phone call (you will soon learn why this matters).

These acquisitions did not happen by chance. Instead, they resulted from relationships established over time and trust – two commodities which are increasingly hard to come by in our society today.

These deals all contained obvious flaws that caused them to be undervalued at acquisition, providing significant wealth-creation potential for Buffett and his investors.

At times like these, opportunities like these may seem beyond your grasp – but we can assure you this isn’t true!