Acquire and hold real estate is

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Acquire and hold real estate is a approach most successful investors use during tough economic times. If you were to compare buy and hold investing with say for instance a flipping strategy, you'd require a longer time frame to realize your goals, but its well worth the wait. This strategy will make you a lot of money if you plan and work the offer appropriately.

First, let's describe how you execute this strategy. The idea is to buy a property at below market value, and profit from the appreciation of the real estate as the value rises over the years. In most cases, it takes a few years to realize considerable advances. Contrasting that with a flip method, you would purchase a property with the immediate intent to fix it up and sell that for a higher investment properties amount. The caveat is you may not be able to sell the house for the amount you'd like, so you could end up buying and holding that anyway.

Now that we know what the strategy requires, let's discuss the reason it works very well during distressed economies. When the housing industry is in turmoil, property values turn out to be very low. Prices are generally well off of their all time highs. This means real estate investor can buy and hold real estate property over a number of years and realize money. Simply put, there's room for the associated with the property to grow. If you made concentrate on of buying the property at its' largest value, you'd have to ride it down and wait for it to come back to previous highs, or take a loss. Your investing time horizon together with threshold for losses will help you make your decision.

Another benefit gained from this strategy is you can receive monthly rental salary while the home is rising inside value. To some investors, this a lot more than offsets the time required to realize money through appreciation. Hopefully this article tends to make your choice of strategy clear for trading during tough times. Every strategy provides its' time in the sun. You should check out buy and hold real estate the moment property values are depressed.