Buy & Hold Real Estate Investing in 3 Easy Steps:

The concept of buy and hold real estate investing is very simple…

1. Buy a property as an investment
2. Hold onto that property
3. Create passive income and build equity

Obviously this is often easier said than done. Especially if you want your real estate investments to generate consistent profits every month. So what essential principles help investors invest safely and profitably?

Thinking Long Term

Thinking long term can appear very difficult in a microwave society where most struggle to hold their attention long enough to read a 140 character Tweet. But it is essential to think long term if you want to win long term. This doesn’t just mean next month, or in two or five years, but in ten, thirty, or one hundred years from now. Thinking for the long haul will make a difference in the properties you buy and how you manage them.

Make Your Money When You Buy

Appreciation is a great perk by deciding to diversify into the real estate investing industry. It helps real estate investors keep up with inflation, build long term wealth passively, and often enjoy tax breaks along the way. However, betting on appreciation shouldn’t be an investor’s only hope of making money from a property. Instead lock in value and returns upfront by buying undervalued properties, or buying cash flowing rental property which is already producing income each month.

Deep Due Diligence

As an active real estate investor you must do your homework if not your just asking for trouble. Research and know exactly what you are putting your hard earned money into. The more detailed you are upfront the less likely you’ll run into issues later.

Expect the Unexpected

Even when we do our best research there can still be unexpected issues, or at least those which are hard to time. This can range from storms to tenants paying late, to miscellaneous property damage, and bad contractors. Anticipate issues and be prepared to handle them. This includes having adequate insurance, building up some financial reserves to deal with unplanned expenses, and having professionals on call.

Diversification

One of the most important keys to success in any form of investment is diversification. This applies to buy and hold real estate investing too. So don’t just buy one property and hope it performs as expected. Invest in 3 to 10+ residential properties/units and consider commercial as well to increase your odds of success, and portfolio optimization.

I”ll See you at the closing table,

Marcel Umphery the “R.E.I. Successmaker”