How “Buy and Hold” Real Estate Will Make You Rich
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- เผยแพร่เมื่อ 19 มิ.ย. 2024
- The buy and hold strategy is arguably the most common type of real estate investing out there. True to its name, when investing with the buy and hold strategy, you buy…and then hold. That’s it-no flipping houses, wholesaling, wholetailing, or any other type of creative strategy needed. With buy and hold real estate, you simply buy a rental property, keep it maintained, and one day (hopefully) sell it for a sizable profit. But that’s not the only benefit.
If you can master the buy and hold strategy, you’ll have a portfolio of investments paying THEMSELVES off. Yes, that’s right, your wealth will grow on its own IF you do this right. Even if you’re not raking in huge cash flow every month, your tenants will be paying off YOUR mortgage, allowing you to one day sell the property for a sizable profit. And all you needed to do was buy and hold.
But with high mortgage rates and 2024’s challenging housing market, does the buy and hold strategy still work, or is it an outdated investing strategy only for the days of low home prices and equally low interest rates? Chris Clothier, multi-decade investor and co-founder of REI Nation, is here to give his take.
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00:00 The "Buy and Hold" Strategy
01:19 Does Buy and Hold Still Work in 2024?
03:04 Let Time Make You RICH!
06:33 Best Areas to Invest In
08:34 Financing Your Rental Property
10:43 When to Sell?
12:47 Connect with Chris!
I’ve done hold for 30 years. No debt on ten doors. All good income. Single houses.
Best time to buy?
Twenty years ago.
It works. Retired now. 😊
Great advice so if someone buys now, their 20/30 years will come 🎉 so time will be an early investors friend and business partner
That’s exactly the strategy I plan to employ! I’m not interested in being rich just want to have a better life style at retirement then possible if just on SSI, and to leave something of value behind for my children to do the same.
I could not agree with you more! That’s exactly what I hope to accomplish. Good luck
Thanks for this vid. I like how this guy had a job outside of Real Estate investing and said that he was "using time" to make the returns back. This is something that really interests me and I'm excited to learn more
Buy and hold has huge benefits in California thanks to Prop 13 which caps property tax increases at 2% per year (excluding any voter approved tax increases or bonds or if the property undergoes significant improvements). Property owners that have held for 10+ years are paying significantly less in property taxes than those that bought today.
Not to mention average appreciation of 6.77% over past 39 years… big appreciation on big prices = big equity
yes love my multi units bought in 2001 thank you prop 13 ....love my low property tax bill
Thanks Dave & Chris, much appreciated
Dave you're awesome! Keep it up!
We began our real estate investment by flipping. Once we had enough income we started buying/holding 13 years ago in San Diego county. We own 12 rental doors and our personal residence. We now over half of the properties outright and make a great income. Enough that my husband is retired and I am work optional although I enjoy my boutique real estate brokerage; I'm still working.
Hi. I also live in SD and own a couple of properties. What part of SD did you and your husband invest in, and which parts would you recommend going forward?
Cashflow free and clear is an amazing strategy for wealth accumilation. If you own several rentals free and clear you have options. Save that cash and roll into other properties or accumilate cash and use it to fund your lifestyle doing as you wish and when you want. Imagine living off 50k and having 150k of net income every year. 🎉🎉🎉🎉
I bought 4-Houses (in CA in 2009-2011!)
Doing a 1031 right now. Selling 1 and buying 2. Adding about $100,000 cash.
New houses are in AZ!
Will require less work from me!!!
I’ll get about $1000 more a month!
Will get at least another $10,000/yr I. Depreciation expense I can write off!
Be careful not to overpay prices and rents are coming down
That's awesome! Keep rocking and rolling! If you ever need any funding let me know. Happy to help!
Best method overall.
I’m buy and hold!
I think it's good to hold but also good to trade up when given the opportunity. Adding value to a new property always helps.
This is Quality content! #LongTerm
My plan is simple.
1) Buy enough properties to replace my income (plus a little extra) if they were all paid off.
2) Stop buying and start paying off the debts on a debt snowball method like Dave Ramsey talks about (just with real estate instead of things like credit card debt).
3) Live how I want with regular work being optional.
A lot of people push the idea of not paying off your debts yourself. Let your tenants do that with their money.
They especially push this if you have a low interest rate. The debt really isn't costing you anything.
That's great, except it is tying up money that you would be using as passive income.
I could not pay a dime of my own money, get the properties paid off in 15 or 30 years, and then live great.
But, I want it faster. And, I'd be paying a lot more interest over that entire timeline.
Also, I still pay one of my mortgages from my regular budget. Once I pay that property off my expenses go from about $3,600/month to $1,600/month.
It doesn't take many properties to get me well beyond that number.
@Chris random question, what brand is your quarter zip?
I'm on the fence with one of my properties. I want to sell it to pay off another property and keep a low overhead incase we have a catastrophic collapse. But this house it's in a highly appreciating area and huge game changing development within walking distance breaking ground this year and we have a 3.25% 30 yr fixed. I can cash out with a 380k tax exempt gain or hold it, continue to develop it (i can build 3 more units on it) and cashflow in the meantime. Anyone feeling nervous about being over leveraged if a crash does happen?
Such good honest advice
The effects of the downturn are beginning to sink in. People are being impacted by the long-term decline in property prices and the housing market. I recently sold my house in the Sacramento area, and I want to invest my lump-sum profit in the stock market before prices start to rise again. Is now the right moment to buy or not?
Let me guess someone else is going to reply and say that they did well with an advisor and you're going to say oh wow what's the name of the person, and then the person will reply with the full name including the middle name of the financial advisor and you'll say I'll try to reach out to them thank you. This financial advisor scam is all over TH-cam
There are so many complicated scenarios people use as investment strategies. But at the end of the day this is all it comes down to.
Multiple paid off properties can replace your w2 income in 15-30 years max once they are paid off.
AGREED!
yes buy hold goes up over time , than doing a quick ,cheap flip and run , make a buck today and pay captain gains
You should do both especially when ur young you don’t want to wait 10 years for the money to build up.
@@maalikserebryakov I hold for long term
@@maalikserebryakov cant argue that. Definitely should mix in some flips If you can. Good point.
Ty
luck makes you feel like a genius
If I have $100,000 to invest. Should I put it in a 6% CD or buy 1 House for $200K and put $100K down or buy 2 Houses for $200K each but only put $50K down on each?
50k on each house would be ideal for long term hold if the numbers make sense and it cash flows.
2 🏠 🏠😂
How do you think 3d printed homes and AGI will effect home values and real estate investing?
Scammers do not matter
Make real estate cheap as shit. A permanent Bear market
It’s about location. The home itself doesn’t matter. It’s like how in Saudi Arabia, Singapore and certain countries there is a car license plate market with plates worth more than American homes because the demand for certain ones is so high. Same with most geographic real estate locations there will always be certain high demand locations worth high prices. Now which areas are in high demand can certainly change over generations, just like the Midwest was a boom in Industrial Revolution and now they are ghost towns. Which specific areas are in high demand are speculative but for sure there will be a high demand area with very high prices.
Great video Dave. I just recently made a video talking about this exact thing... I am a long term "buy and hold" and collect cash flow investor. My market has low appreciation and high cash flow, but the appreciation does not really matter to me because Im holding on to these properties for the cash flow for the foreseeable future. The only time its going to matter to me is when the note is paid off and I go to refinance it again, to pull out equity for another deal.
I’m going to go check out your channel, i love seeing real case studies of people winning with real estate
@@MattTheMortgageGuy Sweet, thanks! Im just starting off making videos, so if you are use to bigger pockets quality i apologize in advance!
@@DanielDoesRentalsvideos are great! It’s more about content than video quality honestly. I’ve been making videos on TH-cam for a decade. I started off on my phone and no mic… just trying to get better everyday
@@MattTheMortgageGuy I appreciate the feedback!
Contradicting…. Nice girl math by the guest btw
What if I'm 65 and just getting into real estate?
Why???
You’re never too old to expand your wealth. People are living longer and everything keeps going up. The more you can invest the better.
Has anyone used REI National to invest
Do your homework and find out their holdings and be careful in commercial RE it's crashing hard.
Unrelatable 🤣
if only i had the money to start buying lmao. they always so many videos make it sounds easy like we all stupid for not owning multiple houses..
It's very easy to buy houses. Very very very.
"How to hoard homes for personal gain and further the destruction of the American Dream for yet another family." Disgusts me. A crash IS coming, folks. Buy-and-Hold only works when home prices are sustainable. Current prices are not sustainable. Current rent is not affordable-so how are you going to "hold" a home that you paid too much for so it made your rent TOO HIGH??? It's falling apart.
As my old boss told me, "we were saying that in silicon valley 20 years ago. The crash didn't last long"
Why do you think everyone bought in last couple of years? That’s such a small number. People own homes for many years. That’s why they aren’t selling!
@reination Chris!