How to Buy and Hold Real Estate


There are a few basic rules you should follow when investing in real estate, but the benefits and risks of this strategy are not limited to just property prices. Other factors to consider include financing, turning a property around and turnkey properties. Read on to learn more about how to buy and hold real estate. Then, get started! Here are some examples of properties you should consider. And remember to keep an open mind! You may even find yourself investing in property that you would not normally buy, and that’s perfectly fine!


If you want to invest in the stock market, consider purchasing long-term real estate. Long-term investments like this can withstand the whims of the housing market. These investments tend to have a long time-frame and low correlation with other assets, including stocks. They can also continue to perform well even during periods of widespread volatility. In addition, a real estate secured loan can help you control a $1 million asset for less than two percent of your total net worth.


Investing in real estate involves risk. You must determine your risk tolerance and assess your financial capability before starting your real estate investment journey. Location can be a significant factor in boosting or reducing the risk associated with a prospective investment. Factors such as local job growth and population density increase the likelihood of higher occupancy rates, reducing the risk. Also, you need to consider your desired exit strategy. Listed below are some of the risks that investors face when buying and holding real estate.

Financing options

As an investor, you have many different financing options for purchasing and holding real estate. A traditional bank loan and cash-in-hand are two common options, but these methods are not the only way to fund your investments. Before committing to one type of financing over another, you should assess your finances and explore all available financing options to find the one that works best for you. In addition to obtaining a traditional bank loan, you can obtain a loan through a self-directed individual retirement account, which is an excellent way to purchase investment property.

Turnkey properties

The term “buy and hold” is a popular way to describe real estate investing. Some investors look for below-market deals and oversee renovations, while others simply want to sit back and collect rent checks. Turnkey properties are ideal for these investors, since they’ve already undergone major renovations and often have tenants already in place. In either case, turnkey properties can provide a steady stream of cash flow for years to come.

Off-market deals

You can find off-market deals in many places, including realtors, contractors, and estate lawyers. The first source of off-market deals is the property manager or estate lawyer. Property owners usually tell their property managers when they plan to sell. Be sure to let them know your criteria and needs when they send you a deal. If everything looks good, you can close the deal. If you want to get in on the ground floor, consider contacting a real estate agent to learn more about off-market deals.

Cash-out refinance method

Using the cash-out refinance method for buying and hold real estate is a popular way to get extra cash for various purposes. Unlike a standard refinance, this method does not result in cash in hand, but rather a reduction in monthly payments. Because the cash is yours to keep, you can use it for whatever you want. Many people use it to finance large expenses, debt consolidation, or even emergency funds.