buy and hold investing

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buy and hold investing

Joseph Egan
New to Real Estate · Member since 2020 · 6 posts · 2 votes

Hi everyone! 

this might be a silly question but how does buy and hold real estate investing help an individual compete with other investors. I understand there is cash flow and tax advantages and the holy grail of passive income. But, how does my singular property of buy and hold help me compete against another investor maybe using another strategy or using the same strategy. why is buy and hold good? why is it bad? how can i maximize growth and profit? any insight is welcomed! thanks in advance everyone!

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Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
5y

It sounds like you are trying to win a trophy. Why do you care so much about "competing against other investors"?  This is not a win / lose competition.

Not everyone has the same goals.  Not everyone wants to do exactly what you want to do.  Everybody can win.

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  • Greg ScottPro Member
    Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
    5y

    It sounds like you are trying to win a trophy. Why do you care so much about "competing against other investors"?  This is not a win / lose competition.

    Not everyone has the same goals.  Not everyone wants to do exactly what you want to do.  Everybody can win.

    1Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    5y

    @Joseph Egan REI is a very wide field. Decide what your goals are and what you think you like. Flipping, BRRRing, Lending whatever. I am a buy and hold investor. In order to be successful you must know underwriting you can't get anywhere without that.

    You have to have a deal qualification process-for a property/deal. You must be able to analyze financials, you have to know what numbers are suspicious and which ones are just plain wrong. Don't accept numbers in a listing or from a broker as being correct. Dig up the real numbers or know how to accurately estimate them.

    You will need to develop a deal flow pipeline that is not dependent on the regular MLS. It is all about relationships. Join a local group of LL's, they are in many places. When covid subsides go to meetings.

    Find out and educate yourself about deal structure and lending.

    Hang out here; this place is invaluable. 

    There is miles more to this stuff. Read books, attend podcasts and ask questions. All the best!

    1Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    5y

    Bjorn Ahlblad Investor from Shelton, WA

    replied less than a minute ago

    @Joseph Egan REI is a very wide field. Decide what your goals are and what you think you like. Flipping, BRRRing, Lending whatever. I am a buy and hold investor. In order to be successful you must know underwriting you can't get anywhere without that.

    You have to have a deal qualification process-for a property/deal. You must be able to analyze financials, you have to know what numbers are suspicious and which ones are just plain wrong. Don't accept numbers in a listing or from a broker as being correct. Dig up the real numbers or know how to accurately estimate them.

    You will need to develop a deal flow pipeline that is not dependent on the regular MLS. It is all about relationships. Join a local group of LL's, they are in many places. When covid subsides go to meetings.

    Find out and educate yourself about deal structure and lending.

    Hang out here; this place is invaluable.

    There is miles more to this stuff. Read books, attend podcasts and ask questions. All the best!

    0Reply
  • Joseph Egan
    OP
    New to Real Estate · Member since 2020 · 6 posts · 2 votes
    5y

    @Bjorn Ahlblad thank you very much. i really appreciate your post now I have some more direction, i'm going to go look up underwriting and figure out exactly what that is and i'm going to look more into the deal analysis. Thanks again!

    0Reply
  • Calvin OzanickBusiness Member
    Property Manager · Janesville, WI · Member since 2017 · 707 posts · 297 votes
    5y

    The competition does not really matter. The purpose of REI is to bolster or replace your 9-5 income. You need to pursue paths that work best for you. If you are a very skilled tradesman, then I would say you should be flipping homes because you might be able to make more money. However, if you do not have those skills, then Buy and Hold might be the way to go. You need to assess your needs and make a move based on that. Not the other way around.

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  • Candice De
    Real Estate Agent · Denver CO and Summit County, CO · Member since 2015 · 74 posts · 43 votes
    5y

    @Joseph Egan I agree with others that you I have to define your goals. Two components of those goals are timeframe and risk tolerance. Those help frame which part of REI is more appealing for your situation.

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