Buy and Hold Real Estate Investing Articles
I have always loved real estate investing and while I have invested in a number of investment strategies, the one that is nearest to my heart is the Buy and Hold Strategy.
Years ago I was told about the 5 wealth building principle and the more of those wealth building principles you can incorporate into one investment the stronger and more sustainable investment you will have. These 5 wealth building principles, appreciating values, cash flow or income, equity build up, appreciation and the ability to leverage a down payment and use borrowed money are all attributes that help accumulate wealth. There are number of investments that will offer 2 or 3 of these wealth building principles but it is only real estate that will offer all 5 in one investment. Now that packs a powerful punch
When you invest in real estate that you hold for long term investment you have the IDEAL Investment.
Buy and Hold Real Estate, the Ideal investment
I = Income / Monthly cash flow
D = Deductions / tax benefits such as deductions and appreciation
E = Equity / The debt reduced on the mortgage that is paid for by the tenant
A = Appreciation / Value growth from year to year (national average is 6% past 50 yrs
L = Leverage / the ability to have 1005 of these above benefits while borrowing 80% of the money used to make the purchase
Don’t wait to buy real estate, buy real estate and wait. – T. Harv Eker
You can buy cash flowing property in any city U.S.A. Buying safe and sustainable cash flow with the best chance of appreciation is what seasoned investors have been doing for years. Everyone knows that real estate is all about Location. The Location that provides the most sustainability for a long term investment is the focus of seasoned investors and that too is our focus here at Equity Builders Group.
When you incorporate all 5 wealth building principles in one investment you have the best investment vehicle. When you are diligent and purposeful to use the number one attribute of that investment (For real estate it is location) then you have added an investment to your portfolio that will reward you will. This is how 90 percent of the worlds millionaires have generate all or part of their wealth from real estate investing.