Buy and Hold

What Is Buy And Hold Real Estate?

Buy and hold real estate is a popular long-term investment strategy where an investor buys a property and holds it for a long period of time. This is usually done with the goal of selling the property for a profit as appreciation increases the property value. Often the investor will rent the property while holding it to cover the costs of the mortgage and expenses. To successfully buy and hold real estate for a profit, an investor must crunch all expenses first and “make money on the buy”. This means that the price they actually acquire the property for must make sense when they consider their plan for the deal. Since we never know the future 100%, the buy-in price is the only sure factor in the equation that the investor can control. Follow these simple steps to guide you through a buy and hold strategy transaction.