Multifamily Investor Rob Rowsell explains the nuts and bolts of buy and hold real estate deals. Is this right type of property investment strategy right for you? Watch now and find out!
What Are Buy and Hold Real Estate Deals?
Rob and Claudia only buy two categories of deals. One of them is Buy and Hold real estate deals. When engaging in this kind of multifamily deal, Rob refers to the asset as a Legacy Property. After completing the purchase, Rob holds the property in his portfolio for ten years. Then, he “checks the temperature” of the market to decide if he should keep or unload the investment.
The Velocity of Money Deal category is one example of a Buy and Hold. You buy an underperforming property. Since you can’t keep the units at 90% occupancy, it voids your qualification for a conventional loan. Therefore, you apply for a bridge loan and inject a ton of capital into renovations and attracting new renters. After you’ve finished those tasks, the property is 90% full, and you can refinance the loan. Get back all or most of your capital investment, and let your investors stay on at the same rate of return they agreed to initially. Now, the value play is done. Everyone can sit back and enjoy ten years of cashflow.
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Do you own multifamily properties? Do you want learn how to build wealth through passive income? Then you should consider joining our online discussion group, the ATL Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!