Real Estate Investor Magazine South Africa October 2013 | Page 34
PROPERTY FORUM
INVEST IN REAL ESTATE LIKE WARREN
BUFFET THE JT FOXX WAY
JT FOXX
JT Foxx is a serial entrepreneur and real estate investor and is known worldwide as one of the top speakers
and coaches in the wealth creation, real estate and business sectors. He has also been a radio personality
over the last 7 years. Originally from Canada, he started eight years ago with $974 and a very old Ford
Ranger Pick up truck. His areas of expertise are marketing, branding, sales and strategic thinking
and investing. He is also the founder of the world-renowned event Mega Partnering
and Mega Partnering Africa.
R
eal estate is by far one of the best vehicles to grow your wealth and to accumulate assets. Hoarding cash is the wrong
strategy especially if inflation creeps up or the value of the Rand starts tanking against other world economies. Many
people got hurt during the last real estate crash and are still skeptical about investing again, even though they know
there has never been a better time. The reason many got hurt is that they invested like real estate investors rather than
real estate entrepreneurs. Too many investors work in their business rather than on it or bought properties where the margins
were so tight they had to do the work themselves to make the deal work. Sadly, this strategy didn’t work and many lost it all, only
to be left with broken hopes and dreams.
My strategy for investing has always been one of success modelling. Take what
other very successful people or other industries are doing and apply it to what
you are doing in your real estate business. That way you are not only being
disruptive but you are creating your own economy. In my case, I have always
looked up to and idolised Warren Buffet and have tried to build my real estate
business in the manner he built his empire. Here are the four main concepts.
information, which turned out to be wrong. That mistake was a R200,000 loss but
one of the greatest lessons of all because had this not happened it could have
cost me a lot more later on in life. Despite this isolated mistake, even after well
over 500 deals, my partners still like to bring it up.
Buffet/Foxx Principle #1
The final lesson is that you need to find good partners. Whether you are Donald
Trump or Warren Buffet you will run out of money to do deals and you are
going to outgrow your bank or scare your bank into capping the amount they
are willing to invest. Banks are scared and even Buffet, who is flush with cash
and bought Heinz Ketchup for $22.4 billion, brought in a partner. Trump no
longer uses his own money to build big development projects, rather he finds
local developers to partner up with. So it is essential that you find a value added
partner where you have a mutual beneficial relationship that is built on loyalty
and trust. I truly believe that this lesson from Warren Buffet, and his relationship
with Charlie Munger made me realise at a young age that no matter how
good of an investor I can be, I will always run out of money, so why not find
a partner? Better to get 50% of 500 deals, than 100% of 6 properties. Buffet
proved that whether the market is up or do ?] ??[??&]X] \??X?]\?HY? [?B???Y? ?Y? [?H?[? ?X]\?[?HX\??] \??[[??K???H ??\?H ?X??\??[?[? ?^x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