Top 5 Benefits of Buy and Hold Real Estate – Video
Speaker: I just want to remind you of the benefits of being a buy and hold investor. First of all, leverage. Where else can you borrow 80% of an asset? Just put 20% down to own the entire asset and all of the cash flow of that asset. It’s just amazing. Then you’ve got this second piece of leverage where you have a tenant, somebody paying off that loan for you. You borrow the money to buy the asset, you have someone pay the loan off for you and you end up with the whole thing. It’s amazing. On top of that, you get tax benefits for doing so, amazing tax benefits. You can get to a point where you pay almost no taxes if you own enough real estate and can show that you’re working on it. Talk to a CPA, but it’s very exciting.
Of course, we know there’s appreciation. Historically, the housing appreciates. I think we can agree that in certain markets that have job growth and population growth, we’re going to see housing values increase as well.
Then, generational wealth- you can pass on these assets to your children and you can protect your assets with insurance, LLCs, and different entities and structures, so that you can even come to a point where nobody knows what you own and protect those assets for yourself and your family.