Buy and Hold Training
Owning real estate that continuously generates cash flow can provide extra income for many years. It’s called Buy and Hold investing and it can generate passive income.
It sounds good, but how do you do it? What do you watch for? What do you need to know as you get started with this investing strategy. Mostly, where do you get Buy and Hold Training?
Many people just jump in and take their chances on making this investment strategy successful. But actual Buy and Hold Training can fully prepare you for the ups and downs of investing in real estate with this method.
First let’s look at the benefits of putting your money in a property that you hang onto, possibly for years to come. Then we’ll talk about where and how to get Buy and Hold Training.
What Are The Advantages of Buy and Hold Investing?
- Monthly Rental Income. After acquiring a property, you typically turn around and rent it out. You immediately become a landlord. Maybe you fix it up or add some improvements. But the point is to get it rented ASAP and realize the monthly income from rent and other built-in fees.
- Asset Appreciation. Just as you gain equity in buying and holding your own home, the same is true of a Buy and Hold investment rental property. With the right acquisition, your investment will appreciate throughout the hold period.
- Automatic Debt Reduction. Rental property is great because the tenant rental income pays the mortgage payment each month, and if you buy smart there is cash flow left over. So rental property is a great inflation hedge. The debt is being reduced and at the same time the appreciation is growing.
- Added Diversity to a Portfolio. Real estate adds diversity to your holdings and helps to provide protection against the volatility of a stocks-and-bonds only portfolio.
- Rental Stability. Once you acquire a property, you want to place dependable long-term tenants in your unit(s) and continue to realize the consistent income that comes from month-after-month of reliable cash flow.
- Protection from Market Changes and Housing Price Fluctuations. Once you have a Buy and Hold property in place, you’ll avoid the scary fluctuations of working with a short-term fix & flip investment.
- Opportunity to target property types. Remember, Buy and Hold doesn’t have to involve investing in a single family home to rent to a family. Consider undeveloped land, commercial buildings, multi-family or short-term rentals. Any one of these paths can provide the advantages of the Buy and Hold strategy, although with different expectations and results.
How To Get Started With Buy and Hold Investing
Naturally, you will need capital to get started with any investment. But the source of that money can be broader than you first imagine. You might be thinking you need to have $25K or $50K in the bank to get started in a real estate investment.
Not necessarily.
Of course, cash is always good. But don’t forget the possible leverage you have elsewhere. Take out a home equity loan or other type, borrow from a friend or relative, consider a partner.
You can even tap into your retirement assets through a self-directed IRA. Be careful: there can be tax consequences, so be sure to consult with your investment and tax advisors before proceeding.
It’s also important to understand that when using your IRA funds for real estate investing, you are not allowed to live in the property, use it, even lift a finger to fix it up or manage it in any way, according to IRS rules.
What You Get From Buy and Hold Training…
Okay, so if you can just jump in and do it on your own, why do you need Buy and Hold Training?
Believe it when we say, there’s a lot to know and understand to be successful in any real estate investing. Buy and Hold investing is no different. Suddenly becoming a landlord isn’t easy if you have no instructions. This is a people business, and it can be challenging.
“We have worked with LeAnn for 9 years now and she has helped us grow our rental portfolio to 50 units.
She has been our agent, mentor and friend who has helped us every step of the way.
LeAnn has been readily available and willing to give advice whenever needed.
…We cannot say enough about our experience with LeAnn and feel grateful to know and work with her.”
– Dean & Renae
‘Need To Know’ Things About Buy and Hold Training
- How to locate properties with upside potential and how to gauge that property’s ROI, or return on investment.
- Be prepared to be a landlord. Screening and selecting long-term tenants, setting up leases, payment systems, building your maintenance and management teams, and lots more.
- Anticipate the unexpected. Get your head into the fact that owning property brings not only investment income but likely financial and management surprises too.
- Optimize your property. What does that mean? You need to know what types of value-add actions will actually improve your revenue and bottom line. How much fixing/upgrading will actually improve your numbers, and know what choices you make that could be costly but won’t add to your investment income. You need to think and realize this is operating a business and it takes great skill if you have never had the experience. Also, mistakes could be costly so it’s critical to have a real estate investment coach or mentor to guide you when you are just starting out.
- Know your exit strategy. Why is this important? It’s good to have a plan for your long-term investment, and included in that plan is when and how to ultimately sell and move on from the investment. If you’re prepared, you can better evaluate–-ahead of time–-the timing and method for selling that particular property. It’s all part of your real estate investing strategy.
What You Learn From Buy and Hold Training…
Do your research to find the right Buy and Hold Training program for you. There are many options with a wide range of “experts”–online courses, YouTube channels, podcasts galore and more.
When looking at buy and hold training options, it’s wise to consider what you need for your personal learning style.
Do you want an in-person class environment? Will you consider online learning? Do you want more “hand holding” or prefer to be on your own learning schedule? Do you plan to just dabble in investing through this strategy, or are you expecting to create and build a full real estate investment business? Can you rely on book learning, or is it better for you to have ongoing personal coaching to keep you on track and on-task.
LeAnn Riley’s Proven Profit Formula Coaching Program may be just what you need to get started with your first investment property or to scale a real estate portfolio.
Whatever educational choice you make, expect to pay a certain amount of tuition. These costs can range from hundreds of dollars to tens of thousands. But remember, a well-known Harvard Professor Howard Gardner once said, “If you think an education is expensive, try estimating the cost of ignorance.”
Education is an investment in itself. Choose wisely but realize the gain you’re getting. Remember, investing in real estate is likely the most money you will spend on one item, a rental property. Mistakes can be costly and that is the big fear that stops most people from getting started. Don’t let that be you. Get help, choose a mentor or coach and get some reliable Buy and Hold Training.
What to Look For In a Quality Real Estate Investing Training Program, Including Buy and Hold Training:
- A proven business system. Rely on an individual or company that has operated successfully in the world of real estate investing. Find a trainer who has built a portfolio of investment properties, someone who has done multiple strategies in real estate investing.
- A dedicated coach. There’s so much to learn and know as you begin and grow in this arena. A reliable trainer/coach/mentor can guide you step by step on your investing journey, and walk you through the inevitable tough times. Make sure you know the right formulas so you can tell a good deal from a bad deal.
- Access to current resources and tools. Your learning will continue into the future, so it’s great to have online tools and materials you can return to throughout your growth.
- A like-minded community for support. It might be a weekly phone call or Zoom meeting, a Facebook group or a real estate investing club. It’s important to surround yourself with positive folks who believe in what you’re doing and can provide emotional and hands-on support and resources.
- Access to additional training events. Your community will provide all sorts of options when it comes to seminars, podcasts and online opportunities for continued learning.
Whether you’re new to real estate investing or have completed a few deals, getting training in Buy and Hold, and other real estate investing strategies, can be a deal breaker when it comes to your success.
The Proven Profit Formula Coaching Program offers all these tools and more.