Get Rich Slowly By Holding Property

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Those who become involved in real estate investing, usually do so because they have aspirations to become rich.  Many beginners get involved in real estate, excited by quick riches.   After these ideas fail, these investors generally become more informed and end up choosing a long-term approach to real estate.  One of those strategies is holding property over the long-term, while renting it out in order to pay down the mortgage.

Holding property has many benefits that other real estate niches can’t provide.  Those who have a long-term plan and access to leveraged capital can become involved in holding property.  Investors can benefit from long-term appreciation and earn equity in their property over time.

When deciding on holding property, look for asset property.  Avoid property that is located in an undesirable location and one that has too many problems associated with it.  Fixer uppers are for rehab investors and most long-term holders don’t want to get involved with these properties.  Be sure that one has the available funds to pay for the investment month after month.  The best way to do this is to rent out the property and pay down the mortgage with other people’s money.

Most people, who end up holding property, rent it out in order to benefit from leveraged capital.  Those who secure a bank loan are able to leverage about 80% of the capital, while only supplying about 20% of their own capital in the deal.  They are then able to have renters pay for their loan month after month.  In the best case scenario, an investor doesn’t have to put any more of their personal capital into the investment, all while earning equity in the property.

When holding property, don’t cut corners, as the physical condition of the property is of utmost importance.  Put in the time and money to make repairs, while putting in maintenance when necessary.  A good way to maintain a property is to find a responsible tenant who takes pride in the location and wants it to look its best.

It is also important to purchase a respectable insurance plan in case anything goes wrong.  Most investors put a good majority of their capital into such a project and they should protect it in case anything goes wrong.

Holding property is the get rich slow strategy that many investors have employed over the eons.  Those who understand the benefits of holding property and renting it out are able to benefit on the short-term and over the long-term.

Asking questions with these tips in mind will help save real estate investors thousands.  For more ideas related to real estate investing, call or visit us a  We are the nation’s number one home buying franchise with over 15 years of experience.  Our company has a vast assortment of real estate investment and real estate franchise opportunities available to help you grow your real estate business.  Come see us for more information.

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