I LOVE a good buy and hold investment!
There has been three returning ingredients to my most successfull deals. Theese three ingredients makes me a lot of money, so I figured I’d tell you about them.
Number one. Buy a property :) Most of your money will be made here. In short, you want to buy something comparatively cheap. If you manage to secure a deal under the actual market value, you will most likely always have the option of selling with profit at any given time. This strategy will also help you maximize your potential appreciation. I spent a few months creating a massively useful document about how to find and analyze properties to make the best possible purchase right. If you want to read it, CLICK HERE. (in Swedish).
A step often overlooked by most investors and the step I like the best.
If you are able to increase the rental income, build some storage to rent, make something better, than that too helps increase apreciation. It also means you are selling something of higher value which means you will be more likely to sell at any time with bigger profit.
Time is money. Or at least most likely. There are times when the market dips, but in general we have had a pretty steady appreciation amongst properties for the last few hundred years. The strategy behind holding a property is spelled “cash flow“. You gain cash flow through rental incomes. As we only buy properties with good cash flow we won’t have to sell them unless we make a lot of money on the potential sale. Since we only sell when we want, we will sell during hot booming markets. We then hold on to the money until there is a cold market and boom. Money in the bank :)
How about that for convincing you to do a buy and hold investment?