Buy to Hold or Create Value?

General Real Estate Investing
1

Buy to Hold or Create Value? :argue I personally would want to create a portfolio with a combo of both but which would you prefer…?

2

I prefer questions that I can understand so that I can answer them! Try this again, in English!!

Rob

3

LOL…ok…I’ll break it down…Would you prefer to buy a APT and hold it forever or buy an APT and “flip” it?.. :beer

4

Depends upon which makes the most money.

Also, some properties aren’t enough quality to hold, but can still be flipped for a profit.

5

By the way, you should be “creating value” on your buy and hold properties, too. Buy them cheap, fix them up, increase value by upgrading or remodeling if it pencils out. I don’t purchase a property to hold unless I get either a lot of instant equity, and/or can create a lot of equity within a month or two.

6

The concept mentioned above should go for any property. I can’t imagine an investor who only wants the current figures. I say increase and hold. I flipper can make close to $92M over a 25yr period but a buy to hold investor can make about $24M per year for the rest of his/her and thier kids life and beyond at year 25…and thats not including the equity cash out…so…i guess it depends on your lifestyle and goalz. :beer

7

for me, i prefer to create value out of it…
because holding a apartment for myself isn’t gonna make me any money.

8

I am agree with whatever you provided here. The reason I am stating this is holding apartment will not work out. I am having an example of this and I know it doesn’t help out much.

9

In general, flip if you need immediate equity but try to hold if the area is booming.

For most properties, flip and hold will give the best value.

10

I guess I see it as a constant income rather than quick money…Its creating wealth…Get paid for the rest of ur life where it maybe a smaller amount or get one big check that you may blow over time…

11

I normally buy and hold for rental, however I ran across a deal this week on a beautiful house, upscale in upscale neighborhood, doesn’t need a big rehab budget,and it was built in 92,a short sale for about 65% FMV…but there is a problem, is has a beautiful pool,I do not want a pool in a rental, so because the deal is so good, I am going against what I normally do and flip it.

12

Yea…I think it all depends on the deal…u don’t want to be sittin on a lemon just because it has income…the value could be degrading so I think it should be a balance between holding and flipping…but I think its two diff worldz wit commercial and residential…

13

I have read the discussion going on the topic the risks involved in buying the property which has been owned buy a bank. Of course there will more legal provisions involved in this business that an ordinary one with no bank involvement.

14

right! if the property seems to be very expensive if we are to create a value for it, think twice before buying it.