Buy & Hold Long-Term Strategy for Real Estate Investors‏

Buy and hold real estate is a strategy most thriving investors use during tough economic times, but can be used anytime. If you were to evaluate buy and hold investing with say a flipping strategy, you'd need a longer time frame to apprehend your goals, but it's well worth the wait. This tactic will make you a lot of money if you plan and work the deal properly.

First, let's explain how you implement this strategy. The idea is to buy a property at below market value, and profit from the appreciation of the property as the value rises over the years. In most cases, it takes a few years to understand significant gains. Comparing that with a flip strategy, you would buy a property with the direct intent to fix it up and sell it for a higher amount. The limitation is you may not be able to sell the property for the amount you'd like, so you may end up buying and holding it anyhow.

Now that we know what the strategy requires. Let's discuss the rationale why it works great during distressed economies and works during thriving economies but not as good. When the housing market is in commotion, property values become very low. Prices are usually well off their all time highs. This means the real estate investor can buy and hold real estate over a number of years and grasp a profit. Simply put, there's room for the value of the property to grow. If you made the fault of buying the property at its' highest value, you'd have to ride it down and wait for it to return to prior highs, or take a loss. Your investing time perspective and threshold for losses will help you make your decision.

Another advantage gained from this strategy is you can receive monthly rental income while the home is growing in value. To some investors, this more than offsets the time essential to realize a profit through appreciation. Hopefully this article makes your choice of strategy clear for investing during hard times. Every strategy has its' time in the sun. You should look to buy and hold real estate when property values are low.

Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets... Learn More...... www.memphisbuyandhold.com