The Ultimate Guide to Buy-and-Hold Investing

Do you dream of financial independence? Early retirement? A comfortable college fund for your kids when they grow up? If you’re willing to be patient, you can build wealth with real estate through buy-and-hold investing. Keep reading to learn more about this strategy from the experts behind the Real Estate Financial Planner™.

What Is Buy-and-Hold Investing?

A buy-and-hold investor is in it for the long-term gains, not a short-term boost. Instead of acquiring property and trying to sell it for profit within a few years, buy-and-hold investors typically hold on to their investment properties for five to 10 years. While investors like fix-and-flippers are typically interested in short-term gain, buy-and-hold investors play the long game.

Why Choose Buy-and-Hold Investing?

What are those benefits buy-and-hold investors are holding out for? Here are a few:

  • Appreciation
  • Easier management with time
  • Tax benefits
  • Lower risk

Short-term real estate investing can offer short-term cash, but it also comes with higher risks and a lot of pressure. For example, fix-and-flip investors have to move quickly to make significant, value-add changes to their properties, and the longer those changes take to make, the less profit they will see from their deal.

The greatest advantage of long-term real estate investing is time. Time can cure most bad deals, as long as you have a solid plan in place. Your rental income will increase over time, and appreciation will boost your property’s value, so even if you paid a little too much at the beginning, you’re likely to earn it back if you’re willing to be patient and put in the time to manage the property.

Choose Your Strategy

There are many ways to approach real estate investing, and there are several ways to approach buy-and-hold investing too. The Real Estate Financial Planner™ was not only built specifically support buy-and-hold investing, but also support specific approaches to this strategy.

Nomad™ Investing

In our opinion, the Nomad™ investing approach is the best strategy out there. You buy each of your investment properties as an owner-occupant, and you live in each new property for at least a year (or however long your lender requires). To learn more about the Nomad™ approach, check out our 101 class for interested investors:

House Hacking

You can also take advantage of Nomad™ investing from another angle by not only living in each property as you acquire them, but also renting out space in that property to gain rental income at the same time. We call this “house hacking,” and it’s a great option for bringing roommates into a multi-bedroom home or leasing out space in multiplex property.

Learn more about house hacking in this two-hour class:

Take Action

No matter what real estate investment strategy you choose, take action! The only way you’ll benefit is if you buckle down and make your first deal. If you’re not sure where to start, that’s okay! We offer hundreds of free classes on everything from being your real estate agent’s favorite client to bookkeeping and managing your properties. Get started with our overview class “How to Get Your First Deal Done,” which packs all of our best advice for beginners into a two-hour seminar.

Learn More

Are you ready to dive in? Get started with these classes, and have the tools you need to make smart investment decisions with the Real Estate Financial Planner™. Sign up for your free account today, and keep learning!

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