Tuesday, March 3, 2020
1) What's good about real estate investing in general and what
does buy and hold real estate investing mean?
Real Estate appreciates over time (goes up in value)
Gives you positive monthly Cash flow and
Gives huge tax incentives (lowers your taxes)
Buy and Hold investing means holding for the long term (More than one year) This is a great way to go because you pay down the mortgage monthly, the property goes up in value, and the rental rates continue to rise. If you do decide to sell there are tools (1031 Exchange) to defer any and all taxes you would earn through a sale for your lifetime.
2. What are the benefits of applying a buy and hold approach to real estate?
Property appreciates in value, rents increase over time and your positive monthly cash flow increases and you get great tax incentives (write-offs) that decrease your taxes owed annually
Which types of property investments/vehicles are best suited for
buy and hold?
Most investors start in single family residential close to their own home because it is easier and more affordable to get into. As they get more savvy, increase their tolerance, skill set, and increase of income they tend to accumulate more or and move up to multifamily (5 units or more) or and commercial investments like office buildings, strip plazas etc.
3. What are the top rules investors should keep in
mind/follow when investing in real estate from a buy and hold
perspective?
Rule number one be sure the property is a positive monthly cash flow after all expenses are paid. Rule number two stick close to home until you get the hang of it. Rule number three is to use professionals to guide you into the purchase, rehab, renting, and management of your investment. Rule number 4 it to invest in good areas where properties will appreciate
4. What mistakes should they watch out for?
Do a home inspection before you purchase to have a better understanding of what the condition of the home is. You can also use this as a negotiation tool to get the price reduced if needed.
How can someone get started with buy and hold real estate investing? Find an investor minded Real Estate Agent/Broker in your area and meet with them to discuss your goals and you can work out a strategy to acquire and manage your properties
Glenn has been a full time real estate investor for almost ten years. In the last two years, he and his team have purchased and renovated over 80 distressed properties in Las Vegas, NV. Glenn then places a high quality, long-term renter or lease option tenant in the home and sells it to his investor clients as a turn-key investment with great cash flow and strong appreciation potential. Glenn closely follows current market trends and his predictions and analysis have been featured regularly in such well respected publications as the LV Review Journal, LV Sun Business Journal, and CNN Money.