Become a landlord without the work
Buffett clarified that in his dream world of buying all of those homes, he’d need to find an easy way to manage them as investments, too.
Firms like First National Realty Partners (FNRP), for example, make it easy for investors to tap into commercial real estate opportunities without the legwork of finding deals yourself.
And while some commercial investment opportunities are expected to witness weaker growth in 2025, they are not all one-and-the-same. Real estate for essential businesses, like grocery stores and health care facilities, is still popular because it has proven resilient to the broader e-commerce transition.
And First National Realty Partners allows accredited individual investors to access these types of necessity-based commercial real estate investments — without having to do the research or manage tenants.
These are a few examples of past properties or acquisitions from FNRP. For a full list of currently available properties, visit the FNRP deal room.
The FNRP team has relationships with the nation’s largest essential-needs brands, including Kroger, Walmart and Whole Foods, and provides insights into the best properties both on and off-market. And since the investments are necessity-based, they tend to perform well during times of economic volatility and act as a hedge against inflation.
You can engage with experts, explore deals, and easily make an allocation, all in one personalized portal.
There are also other real estate crowdfunding platforms that are currently stripping out the management and admin that’s usually required when you invest in real estate.
For example, Homeshares allows accredited investors to gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning, or managing property.
The fund focuses on homes with substantial equity, utilizing Home Equity Agreements (HEAs) to help homeowners access liquidity without incurring debt or additional interest payments. This approach provides an effective, hands-off way to invest in high-quality residential properties, along with the added advantage of diversification across various regional markets – all with a minimum investment of $25,000.
With risk-adjusted internal returns ranging from 12% to 18%, the U.S. Home Equity Fund offers accredited investors a low-maintenance alternative to traditional property ownership.
Invest with a mortgage
The average rate for a 30-year mortgage was 3.65% in 2012. These days, a 30-year fixed mortgage rate is around 6.87%.
So, Buffett would probably be a little bit less jazzed on home buying in 2025.
That said, markets are cyclical. Usually (or at least in the world of interest rates) what goes up will eventually come down.
No matter what happens to interest rates, you’ll want to ensure you’re shopping around for the best rate possible–because the search really does pay off.
According to research from Freddie Mac, borrowers who applied for mortgages from two lenders saved up to $600 annually. And if they applied for four or more, those cost savings doubled to $1,200 every year.
For an efficient way to shop for rates, Mortgage Research Center (MRC) helps you quickly compare rates and estimate your monthly payments from multiple vetted lenders. All you have to do is enter some basic information about yourself, such as your zip code, your desired property type, price range and annual income.
Based on the information you provide, MRC will show you mortgage offers tailored to your needs. After you match with a desired lender, you can set up a free, no-obligation consultation to see if you’ve found the right fit.
For those refinancing an existing mortgage, MRC can even help you find a better rate than what you currently have.
Choosing in-demand markets
Generally, Buffett isn’t a huge fan of investing in real estate for returns. He tends to prefer the stock market, because it can be easier to pinpoint companies with strong growth potential. Real estate can be a bit murkier. That said, he has invested in REITs, and sold his stake in STORE Capital’s REIT after it was acquired by Singapore’s sovereign wealth fund.
If you’re interested in REITs, DLP Capital offers tax-advantaged, private REITs through various investment funds.
DLP Capital aims to deliver annual returns in the range of 9% and 13% — at par with the S&P 500 index’s 10.26% median annual return. The firm’s success speaks for itself. DLP Housing Fund has delivered 19.47% returns annually between 2020 and 2023.
Accredited investors can earn passive income through monthly, quarterly, or annual distributions, all while benefitting from portfolio diversification and a potentially lower tax bill.
DLP also facilitates the investing process, so real estate investing can be as simple as Buffett dreamed of back in 2012.
