Some Thoughts from Andrew Syrios Buying real estate ain’t free unfortunately. Indeed, I like to say that if you’re not cash poor, you’re not a real estate investor, at least in the beginning. Buy and hold real estate offers a great way to gain wealth, but most that wealth will be tied up in equity. And to get to that equity, you’ll need to find a way to finance your acquisitions. Fortunately, there are a lot of great ways for a new investor to finance holds. The best methods, in my humble opinion, are listed below: Save and Hold
Page 14
If you have a decent job and want to invest in real estate on the side, the “save and hold” method is for you. This requires living below your means and saving money of course, which really is a prerequisite for any sort of investing. Having a job is a major advantage because it makes it much easier to get bank loans. Banks just love easy-to-digest borrowers with W2 income. Unfortunately, there are downsides. It’s much more challenging to find good deals when you’re working a 9 to 5. And of course, you are stuck with a job, which is
what many people who get into real estate want to get out of. Save and hold is a fairly passive approach to real estate investment, but it can help secure a great retirement. It’s also a good way to build a foundation so you can later leave your job to go full time into real estate investment. Flip and Hold Flip and hold is probably the lowest risk method to buy and hold as a full-time real estate investor. With this strategy, you simply use the profit from the first flip to live and the profit from the second flip for the down payment on a property to hold. Then re-
Grow Your Business
