Use: 20OFFSPRING  Save up 20% on all Corofy Real Estate courses. Ends May 31, 2024.

Can Real Estate Agents Buy-and-Hold Investing?

A real estate agent's signboard leaning against a house
In this article

Real estate investment is a lucrative venture that many people are interested in. Among the various strategies available, one option that often comes up in discussions is buy-and-hold investing. But can real estate agents engage in this strategy? In this article, we will explore the ins and outs of buy-and-hold investing for real estate agents and provide valuable insights to help you make an informed decision.

What Does Buy-and-Hold Investing Mean?

Before diving into whether real estate agents can engage in buy-and-hold investing, let’s clarify what this strategy entails. Buy-and-hold investing is a long-term investment strategy where an investor purchases a property with the intention of holding it for an extended period. Instead of focusing on immediate profits like flipping houses, buy-and-hold investors aim to generate long-term income through renting out the property or waiting for its value to appreciate over time.

Buy-and-hold investing is a fascinating approach that allows investors to tap into the potential of real estate. By holding onto properties for an extended period, investors can unlock a myriad of benefits. One of the primary advantages is the potential for long-term income and wealth accumulation. Through rental income, investors can enjoy a passive cash flow that can provide financial stability and even open doors to new opportunities.

Is Buy-and-Hold Investing Worth It?

Many real estate investors find buy-and-hold investing worth the effort and patience it requires. By holding properties over the long term, investors can potentially benefit from rental income, tax advantages, and property appreciation. However, as with any investment strategy, there are risks involved, such as market fluctuations and unforeseen maintenance expenses. It’s essential to thoroughly research and analyze the market before committing to buy-and-hold investing.

When considering the worthiness of buy-and-hold investing, it’s crucial to evaluate the potential tax benefits it offers. Investors can take advantage of deductions for property expenses, which can help reduce their overall tax liability. This tax advantage can significantly contribute to the profitability of the investment and enhance the long-term financial outlook.

Is Buy-and-Hold Investing Legal?

Buy-and-hold investing is completely legal and widely practiced in the real estate industry. As a real estate agent, you are well within your rights to engage in this investment strategy. However, it’s crucial to ensure that you comply with all relevant laws and regulations governing real estate transactions and property management. Familiarize yourself with local zoning regulations, landlord-tenant laws, and any other legal requirements that may apply to avoid any potential pitfalls.

Compliance with legal requirements is a fundamental aspect of buy-and-hold investing. By adhering to the laws and regulations, real estate agents can protect themselves and their clients from any legal complications that may arise. It is always advisable to consult with legal professionals or seek guidance from experienced mentors to ensure full compliance and mitigate any potential risks.

Buy-and-Hold Investing Example

To provide a better understanding of how buy-and-hold investing works, let’s consider an example. Suppose you, as a real estate agent, purchase a residential property in a desirable neighborhood. Instead of selling it immediately, you decide to rent it out to tenants. Over time, not only will you receive monthly rental income, but the property’s value may also appreciate. This appreciation can result in long-term wealth accumulation and potential financial freedom.

Imagine the satisfaction of owning a property that not only generates consistent rental income but also grows in value over the years. This example showcases the power of buy-and-hold investing and its potential to create a solid foundation for financial independence.

Pros and Cons of Buy-and-Hold Investing

Like any investment strategy, buy-and-hold investing has its advantages and disadvantages. Let’s explore some of the main pros and cons:


  • Potential for long-term income and wealth accumulation
  • Passive cash flow through rental income
  • Tax benefits, such as deductions for property expenses
  • Potential property value appreciation
  • Opportunity to build a diverse real estate portfolio


  • Requires a long-term commitment
  • Risk of market fluctuations affecting property value
  • Responsibility for property maintenance and management
  • Potential challenges with tenants and rental issues
  • Initial investment and financing considerations

Understanding the pros and cons of buy-and-hold investing is crucial for making informed investment decisions. By carefully weighing the potential benefits against the associated risks, real estate agents can navigate this strategy with confidence and maximize their chances of long-term success.

Can You Buy-and-Hold Investing Without A Real Estate License?

One common question among individuals interested in buy-and-hold investing is whether a real estate license is necessary. The answer depends on the specific activities you plan to undertake. If your intention is solely to invest in properties for rental purposes without engaging in real estate transactions on behalf of others, a real estate license may not be required. However, it’s important to consult local regulations and seek legal advice to ensure compliance with all applicable laws.

When it comes to buy-and-hold investing, there are various factors to consider beyond the need for a real estate license. For instance, understanding the local rental market is crucial. Conducting thorough market research will help you identify areas with high rental demand and potential for growth. This knowledge will enable you to make informed decisions when selecting properties to invest in.

Additionally, having a solid understanding of property management is essential for successful buy-and-hold investing. Being able to effectively manage your rental properties will ensure a steady stream of income and satisfied tenants. This involves tasks such as screening potential tenants, handling maintenance and repairs, and addressing any legal or financial issues that may arise.

Furthermore, it’s important to have a clear investment strategy in place. This includes setting financial goals, determining your risk tolerance, and establishing a plan for property acquisition and portfolio diversification. Having a well-defined strategy will help guide your decision-making process and increase the likelihood of achieving long-term success in buy-and-hold investing.

While a real estate license may not be required for buy-and-hold investing, it’s worth noting that obtaining one can provide certain advantages. For example, having a license can give you access to a wider range of resources and networking opportunities within the real estate industry. It can also enhance your credibility as an investor and provide you with a deeper understanding of the legal and regulatory aspects of real estate transactions.

In conclusion, buy-and-hold investing can be pursued without a real estate license, as long as you are solely investing in properties for rental purposes and not engaging in real estate transactions on behalf of others. However, it’s crucial to thoroughly research and understand the local rental market, have strong property management skills, and develop a clear investment strategy. Consulting legal professionals and staying updated on local regulations is also essential to ensure compliance with all applicable laws.

Can You Buy-and-Hold Investing As A Realtor?

As a real estate agent, you have a unique advantage when it comes to buy-and-hold investing. Your expertise in the market, familiarity with real estate transactions, and access to potential investment opportunities can significantly support your buy-and-hold strategy. However, it’s important to strike a balance between your role as a buyer and your responsibilities as an agent. Disclose any potential conflicts of interest and ensure you prioritize your clients’ needs above your personal investment goals.

How To Buy-and-Hold Investing As A Realtor

If you decide to pursue buy-and-hold investing as a realtor, follow these steps to maximize your success:

  1. Research the market thoroughly
  2. Identify properties with rental potential
  3. Perform due diligence on potential investment properties
  4. Consider working with property management professionals
  5. Create a clear rental strategy and business plan
  6. Ensure compliance with all relevant laws and regulations
  7. Maintain open communication with clients and investors

Researching the market thoroughly is a crucial step in buy-and-hold investing as a realtor. This involves analyzing historical data, current trends, and future projections to identify areas with high growth potential. By staying informed about market conditions, you can make informed decisions about which properties are likely to generate long-term returns.

Once you have identified properties with rental potential, it’s important to perform due diligence to ensure they are a sound investment. This includes conducting property inspections, reviewing financial records, and assessing the property’s overall condition. By taking the time to thoroughly evaluate potential investment properties, you can minimize the risk of unexpected expenses and maximize your chances of success.

Benefits of Having a Real Estate License to Buy-and-Hold Investing

Having a real estate license can provide significant advantages when engaging in buy-and-hold investing. Some benefits include:

  • Access to Multiple Listing Services (MLS) for comprehensive property search
  • Understanding of real estate market trends and dynamics
  • Ability to negotiate better deals with sellers and agents
  • Knowledge of legal requirements and contractual obligations
  • Established network of industry professionals for guidance and support

Let’s delve deeper into these benefits to understand how having a real estate license can truly enhance your buy-and-hold investing journey.

Firstly, having access to Multiple Listing Services (MLS) is like having a treasure map in the real estate world. MLS is a database that allows licensed real estate agents to list and search for properties. With a real estate license, you gain the advantage of being able to tap into this vast resource of property listings. You can refine your search based on location, price range, and specific criteria to find the perfect investment property. This comprehensive property search capability gives you an edge in identifying lucrative opportunities that may not be easily accessible to non-licensed investors.

Secondly, understanding real estate market trends and dynamics is crucial for making informed investment decisions. As a licensed real estate professional, you are required to stay updated with market trends, property values, and economic factors that influence the industry. This knowledge allows you to identify emerging markets, predict potential growth areas, and make well-informed decisions about when to buy and sell properties. By staying ahead of the curve, you can maximize your returns and minimize risks in your buy-and-hold investment strategy.

Another significant advantage of having a real estate license is the ability to negotiate better deals with sellers and agents. With your knowledge of the real estate market, you can assess the true value of a property and negotiate a fair price that aligns with your investment goals. Additionally, being a licensed professional gives you credibility and leverage during negotiations. Sellers and agents are more likely to take you seriously and consider your offers when they know you have the expertise and authority that comes with a real estate license.

Moreover, having a real estate license equips you with a comprehensive understanding of legal requirements and contractual obligations. This knowledge is invaluable when it comes to navigating the complex world of real estate transactions. You can confidently draft and review contracts, ensuring that all legal aspects are covered and protecting your interests as an investor. This expertise also helps you avoid potential legal pitfalls that could arise during the buy-and-hold process.

Lastly, a real estate license provides you with an established network of industry professionals for guidance and support. Building relationships with other licensed agents, brokers, and professionals in the real estate field can open doors to valuable resources and opportunities. You can seek advice from experienced individuals who have successfully navigated the buy-and-hold investing strategy. This network can also provide you with potential partnerships, referrals, and access to off-market deals that can give you a competitive advantage in the market.

In conclusion, having a real estate license offers a multitude of benefits for buy-and-hold investors. From accessing comprehensive property listings to understanding market trends, negotiating better deals, and having a strong knowledge of legal requirements, a real estate license empowers you to make informed decisions and maximize your investment returns. Additionally, the network of industry professionals that comes with a license can provide invaluable guidance and support throughout your buy-and-hold journey. So, if you’re serious about buy-and-hold investing, obtaining a real estate license is a wise investment in your future success.

Should I Get A Real Estate License To Buy-and-Hold Investing?

The decision to obtain a real estate license for buy-and-hold investing ultimately depends on your specific goals and circumstances. While it is not a requirement, having a license can enhance your knowledge, credibility, and opportunities in the real estate industry. Evaluate how actively you plan to be involved in real estate transactions and consider the long-term benefits of acquiring a license.

One of the key advantages of obtaining a real estate license is the opportunity to gain a deeper understanding of the intricacies of the industry. By completing the necessary coursework and passing the licensing exam, you will acquire valuable knowledge about real estate laws, regulations, and best practices. This knowledge can prove invaluable when it comes to making informed decisions and navigating the complex landscape of buy-and-hold investing.

Moreover, having a real estate license can significantly enhance your credibility as an investor. When dealing with sellers, agents, and other industry professionals, having a license can demonstrate your commitment and expertise in the field. It can give you a competitive edge, as it shows that you have taken the time and effort to become a licensed professional, which can instill confidence in potential partners and clients.

Additionally, acquiring a real estate license can open up a world of opportunities for networking and collaboration. As a licensed professional, you can join local real estate associations, attend industry events, and connect with other like-minded individuals. These connections can lead to valuable partnerships, mentorships, and access to a wider range of investment opportunities. By immersing yourself in the real estate community, you can stay up-to-date with market trends, learn from experienced professionals, and expand your knowledge base.

What Can I Do With A Real Estate License?

A real estate license opens doors to various opportunities within the industry. As a licensed real estate agent, you can engage in property sales, represent buyers and sellers, offer property management services, and even be involved in real estate investment as a buy-and-hold investor. The possibilities are diverse, allowing you to choose the path that aligns best with your interests and goals.

How Do I Get A Real Estate License?

To obtain a real estate license, you need to meet specific requirements set by your local real estate regulatory body. Generally, the process involves completing pre-license education courses, passing an examination, and submitting an application along with any required fees. Each jurisdiction may have its own variations and additional requirements, so be sure to check with your local licensing authority for precise instructions.

Final Thoughts On Buy-and-Hold Investing as a Real Estate Agent

Buy-and-hold investing can be a profitable strategy for real estate agents, offering long-term income potential and various advantages. However, it requires thorough research, understanding of local laws, and careful property selection. As a licensed real estate agent, you have a unique vantage point, enabling you to navigate this investment strategy effectively. Evaluate your goals, consider the benefits of having a license, and make an informed decision that aligns with your vision for financial growth and success.

Who is Corofy?

Before being a school, Corofy is a community. Our founder, Eddy Boccara, started his real estate career as a real estate salesperson looking for a side hustle.

Since then, he’s had a passion for New York real estate and specifically the talented individuals that take the leap to get their real estate license and help this industry progress.

Eddy created Corofy with one goal in mind: to provide people with quality real estate education that actually helps them build a career they can be proud of.

New York Online 77-hour Real Estate Pre-Licensing Course

Engaging Online Real Estate Course Content

Our New York online real estate course is designed to help you stay engaged and pass the New York real estate exam. With this in mind, our pre-licensing course includes:

Fun activities & quizzes

Chapter review summaries

Easy to follow content

Careers tips and advice

Memory cues to help you learn