We’ve been in the REO services industry since the late 80’s and we’ve seen a lot of things come in go in those years. But we’ve discovered something new that we wanted to make sure that you knew about.
Warren Buffett has built the 2nd largest Real Estate Brokerage chain in the country.
That’s right, while you were looking the other direction one of the world’s most prominent investors has decided that real estate would be a good asset and pushed his chips in that corner.
His company is called Home Services America and is based in Minneapolis, Minnesota. It is a subsidiary of Berkshire – “controlled” Mid-American Energy Holdings. The umbrella of amenities for HAS includes a plethora of settlement services, such as mortgage, title and escrow, relocation and insurance..and they are on pace to add 4-6 regional chains this year.
Here’s the other interesting wrinkle to the company. After acquisition, the local Brokerages are encouraged to keep their company names and the owners must remain involved in the business. Homes Services of America provides well thought out business systems and backend tools in to support the local brokerage. Financially, it’s like putting the best regional brands on steroids.
If Warren Buffett thinks that real estate is a profitable investment, we think that indicates something that we’ve known all along. The future for the real estate industry is bright.
What do you think?