Traverse City, MI · Member since 2018 · 3 posts · 5 votes
I would like to Buy and Hold but my husband does not feel comfortable with us being on title long-term with any rental property, he likes the idea of quick liquidity. He would like me to Fix and Flip or Wholesale, I have experience with all three strategies but feel the most comfortable with Buy and Hold. I cannot change his mind so I need some suggestions.
Investor · Mc Kinney, TX · Member since 2013 · 49 posts · 6 votes
8y
Well I think this is something that you and your husband need to discuss further and really dig into what fears/thoughts make him not want to invest in real estate.
I am a buy and hold investor and I have had to have these kinds of conversations with my wife as well.
What does he mean by he likes liquidity? I personally hold more money in cash as reserves for all my properties than i ever did before investing, so while i have a lot of net worth tied up in real estate the actual cash I have access to is actually higher.
Also I am about to procure a line of credit on some equity i have in a couple of properties, It will cost me nothing until i use it but is 100% liquid and can have it in my account instantly. Again I would not have had this before investing in real estate.
Also, his desire for liquidity may just make you change your strategy to buying single family since there is the largest market of buyers for that type of property, and at least right now in my area everything is so hot if i wanted to sell I doubt it would take more than 30 days to sell a property and liquidate my money.
But he may not know these things or see how they will effect y'alls financial situation. Or (like me) you may just have to have larger reserves than you personal would have to make him feel comfortable. Or he may want the liquitity because in his mind he is planning to buy a boat or car. So I say just continue to have conversations and talk through what is important to both of y'all
If you can not change his mind then do flips. As long as you can not agree you are going to do nothing. It's all the same money. Plenty of wealth generation in flipping homes and much faster than buy and hold.
He will eventually get burned out and that is when you take advantage of his weekness and suggest you move to buy and hold. A good opportunity will come from one of your planned flips.