What Is Buy and Hold Real Estate Strategy
Buy and hold real estate strategy is an investor buying property in a depressed market and then not selling until the market comes back up. This strategy can be used successfully as long as the buyer executes it right. An investor buys a piece or pieces of real estate below market value and then makes money when the property appreciates. This may take a few years, but the wait is well worth it. Take some time to pick out the best investment for the money that will be spent.
When Does Buy and Hold Work?
This is a good system to use when the economy is in turmoil because property values are very low. An investor that can buy low and afford to hold on to the property until the value appreciates, stands to make an incredible profit.
Some investors even rent the property out to make money. This allows them to keep a steady flow of income coming in while they wait for the increase in value. They then can pay the taxes and other expenses from the rental income without digging into their own pockets.
What To Look For With A Buy and Hold
When buying investment real estate, an investor should look for one that does not need a lot of renovation. The less money that needs to be put into fixing the property up means more profit when it sells. If renting the property out, do not rule out the possibility of lease to own. This can ensure that the property will be sold.
Buy and hold real estate strategy is worth taking a look at. Buying real estate can be a smart investment when times are tough. There are MANY different buy and hold properties to choose from and plenty of time to let them appreciate. An investor can be in a position to make incredible profits by doing proper diligence during the acquisition.