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How Buy and Hold Works

Many first-time international commercial real estate investors are unclear about the term “buy and hold” – particularly when thought is given to the fact that many thousands of miles sometimes stand between the investor and the investment. Here is an explanation and some good advice.

First, buy and hold residential and commercial real estate investing is the process of purchasing a property, then holding it for income and equity appreciation. Most investors who utilize this brand of investing on a international basis are interested in tapping into the promise that foreign markets offer – many times offering much greater returns than their home markets.

Information in these investing situations is golden because thousands of miles typically separate investments from the one making the investment. In cases such as these, most investors tend to utilize in-country investing partners – trusted allies who help ensure that the proper investments are selected. Once an investment is made, successful international commercial real estate investors rely upon their business partners to help ensure that the investment performs as well as hoped.

Before making a long distance commercial real estate investment in Norway (or anywhere else), it’s crucial that you:

·        Learn the local market – Norway, like many other international markets, is considerably different than the United States. It’s crucial that you enlist the assistance of a local market expert who can guide you through the maze of potential pitfalls that can make turning a profit in a foreign land difficult. If you choose wisely, not only can you turn a handsome profit; you might generate extremely lucrative returns.

·        Perform due diligence – Performing due diligence is crucial. You must be able to estimate fair market value; learn the total of ongoing expenses; be able to source repairs and other property improvements; obtain good tenants, etc. Many of these steps can be taken before making a purchase. This due diligence process can mean the difference between a losing investment – and wealth beyond anything you might hope or dream.

·        Make winning offers – Once you’ve determined the value of an asset and determined that you’re interested in making the purchase, you’ll need to make a winning offer on the property. Norway has a specific process for submitting offers to purchase commercial (and residential) real estate. Miss a step; your chance of becoming the owner of a property drop precipitously. Done correctly, however, you improve your odds of having your offer accepted – and profiting handsomely.

·        Effectively manage properties – Profit or loss on commercial real estate investments in Norway – like in the United States and Canada – sometimes comes down to the thinnest of margins. One of the biggest opportunities for ensuring that your commercial real estate investments in Norway are successful is by effectively managing your properties. This means controlling costs; maximizing opportunities to increase income; and doing all of the little things that will help you succeed. Don’t have the skills necessary to effectively manage your properties? Tap into the skills of a local commercial real estate expert. Not only will you be able to rest easier knowing that a skilled professional is on the job, you’ll have “eyes and ears” on the ground in-country – which can help ensure that you turn a profit.

·        Increase asset value – Over time, rents can be increased in a measured way. This will enable you to increase the overall value of your investment, can give you increased spendable income, and can help to put you in position to reap lucrative financial returns when and if you decide to cash out of your investment at some not-too-distant date in the future.

Buy and hold commercial real estate in Norway isn’t difficult. There is plenty of skilled help that can help you succeed in the local market. Tap into the available help. You’ll be glad you did!

“If you want to learn more about how to make money in the Norwegian Real Estate Market, visit www.bloomshire.com