The Oracle of Omaha, better known as Warren Buffett, was interviewed on February 27, 2012 on CNBC’s Squawk Box. Becky Quick asked Mr. Buffett where he would place new capital right now. Warren Buffett answered, “Single Family Homes … I would load up on them … it is a very attractive asset class now.”
As an investor who is on the lookout for best return on investments, you most likely will consider, along with traditional bonds and stocks generating high interest income, residential income properties. The Warren Buffett investment strategy is to ‘buy distressed single family homes and rent them for five years.’
Why? Because these distressed properties have fallen in some cases by more than 50%, far below replacement costs. The result is that rental rates at these reduced home values provide attractive steady income. As Mr. Buffett explained, another key factor is the number of households in formation – the large number of married children in their mid 20’s living with their parents is simply not sustainable.
We all know you can buy real estate investment trusts, real estate funds, and real estate indices on the public markets, but our real estate strategy is very specific: for investors who are looking for a high yield fund, purchase distressed properties and hold for five years as rentals in order to achieve consistent yield from the rental cash flow. As you know, high yields are difficult to find in today’s low interest environment. Therefore, private real estate investors are now seeking real estate investments that produce monthly cash flow from residential income properties. This is what inspired us to create the Three Arch Investment Fund One for Accredited Investors, to provide a low risk high yield investment with steady income.
Sample rental home from our Three Arch Investment Fund One
Please join us to be a part of what we feel is the best value investment for 2014 – The Warren Buffett Way. Our established investment strategy of acquiring foreclosed single family homes, and renting them out to local families, is consistent with Mr. Buffett’s famous, and often quoted statement, that he likes to “be greedy when others are fearful.”
Three Arch Investment Fund seeks out distressed properties that can be acquired for half of their replacement costs, and which can produce high yields. Employing an approach similar to Warren Buffett’s value investing strategy, over the past 24 months we have distributed 5% annualized cash flow while maintaining 100% occupancy.
We believe our Three Arch Investment Fund One is exactly what Mr. Buffett was referring to in his interview: consistent, low risk high returns on homes purchased at or after foreclosure, and rented to families with strong ties to the community.
We invite you to request further information on our program that aligns with the Warren Buffet strategy by completing our Contact form.
