Are you a real estate investor in Oklahoma that buys and hold properties for the long term? If so, you can benefit from working with a real estate lawyer that understands your investment strategy, and how to minimize legal problems in your portfolio.

Buy-and-hold investors look to keep the property in their possession and rent it out at a profit. Unlike wholesalers or fix-and-flippers, the buy-and-hold investor chooses to be a landlord and to earn a return over the long term.

The nice thing about buying and holding is the favorable tax deductions. Income is treated as long-term capital gains, and the properties themselves create a deduction called “depreciation.” The tax benefits can be numerous, and is one of the best reasons for holding real estate investments for long periods of time.

But the day-to-day issues of a long term buy-and-hold investor are not without problems, particularly with investors that have not finished setting up their operations team.

How to succeed as a buy-and-hold investor in Oklahoma

Buy-and-hold investors do best when they are well-prepared to tackle all the operations involved in managing rental properties. These operational tasks include:

  • Property management,
  • Marketing and showing the properties to new prospective tenants;
  • Assisting tenants with move-in and move-out inspections
  • Executing leases, deposit receipts, and other statements
  • Managing repairs and maintenance
  • Working with banks and lenders to finance acquisition of the property
  • Working with banks and lenders to re-finance the property once it has increased its income
  • Evicting tenants for non-payment and protecting the asset from adverse legal claims.

These jobs and tasks can be managed in-house with a team of individuals employed by the landlord; or they can be delegated out to third-party contractors.

Real estate investors who engage in buy-and-hold real estate should, at a minimum, utilize the services of a local property manager and a local attorney. Only very large companies will have attorneys and property managers on staff. Most investors will hire third-parties to handle these roles, which is often the best and most cost-effective way to handle these tasks.

Hire a local real estate attorney to handle leases, contracts, and evictions in Oklahoma

Whether you invest in commercial real estate or residential real estate, you will greatly benefit by developing a relationship with a local attorney that handles real estate matters.

For example, you will want your leases to be up-to-date with current laws, as well as to prevent previous problematic situations. Generally, a landlord will continually update his leases over the years, to fix issues that came up in previous court battles.

However, if you are a new real estate investor, or a new landlord, you don’t need to live through decades of trial and error. By connecting with an experienced real estate attorney from the start, you can save many thousands of dollars by using contracts and leases that have been optimized for your benefit.

Your Oklahoma real estate lawyer can assist you when it comes time to sell

Every buy-and-hold investor eventually reaches a point where they no longer want to hold. Instead, they are now ready to sell.

This happens to all long-term investors. Sometimes it could be after five or so years, because they received enough appreciation that they can sell, capture the profit, and re-invest into an even larger property. This is one of the more common strategies played.

Some investors just reach that point where they’ve held the property long enough that they are just ready to move on or retire.

In either of these scenarios, there are several strategies that can work.

For the investor looking to move up and immediately re-direct their proceeds, they would be well served to consult with an attorney or tax professional about a 1031 exchange.

For the investor looking to exit real estate altogether, they might want to consider being a financier. This could involve a variety of selling financing options, like holding mortgages or utilizing contract-for-deed arrangements.

Whatever your situation, you may call on us for help. Check out our next article on seller-financing in real estate.

Oklahoma City Real Estate lawyer for landlords and long-term investors

Travis Charles Smith is an experienced real estate attorney and real estate investor. He works with Landlords, property managers, and long-term real estate investors. His clients include commercial shopping centers, residential landlords, apartment complexes, and private lenders. To schedule your consultation, call (405) 724-8112 or send us an email.