Warren Buffett’s Berkshire thinks that it is time to buy

By: Allan Heller ~ September 3, 2009

Here is an excerpt from a recent XXXa href=”http://www.bloomberg.com/apps/news?pid=20601087&sid=aiWKNGNQZyNk”>Bloomberg articleXXX/a> that indicates a continued interest by the Warren Buffett organization in capturing good real estate investments now while the market is still down.

XXXblockquote>Berkshire, Leucadia Join to Acquire Capmark Assets (Update3)

By Andrew Frye and Pierre Paulden

Sept. 2 (Bloomberg) — Warren Buffett’s Berkshire Hathaway Inc. and Leucadia National Corp. agreed to pay as much as $490 million for Capmark Financial Group Inc.’s loan-servicing and mortgage business in a bet on the U.S. real estate market.

The partnership of Omaha, Nebraska-based Berkshire and New York-based Leucadia was paid $40 million by Capmark to enter into the agreement, the Horsham, Pennsylvania-based lender said today in a statement. The deal gives Capmark the right to sell the assets later to the venture, known as Berkadia III LLC. Capmark may file for bankruptcy after a $1.6 billion second- quarter loss, the lender said in a separate statement today.

Berkshire has been increasing investments in the U.S. real estate market, buying shares of banks including Wells Fargo & Co., the No. 1 U.S. mortgage lender this year. Yesterday, Berkshire’s real-estate brokerage unit announced it acquired a Chicago-based agency to expand in Illinois.

The Capmark deal “fits with the real estate brokerage they bought,” said Gerald Martin, a finance professor at American University’s Kogod School of Business in Washington who has studied Buffett’s investing history. “The market’s down. It’s time to buy.”XXX/blockquote>

With some of the big investment organizations and their top management beginning to re-invest assets in the real estate market, now may be the time to join them and secure a property while prices are down.

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