Build Assets, Generate Cash Flow

“Professional Property Investor never or rarely sell their asset, they build Asset and generate Cash Flow”

My guru says that another secret to be rich in property is never or rarely sale property assets. Again initially this is a little bit contradictive with what I understood or thought. I used to think that those people who rich from property used to buy and sell property quite frequently. I thought that they get rich in property by buying and selling property and get a huge capital gain from it to be invested in another property. But this time what I heard is that those people seldom sell their property and keep building assets and generating cash flow from it.

According to him, there are few reasons why those people seldom sell their assets. First is to avoid the taxes. Once they sell their property they need to pay for the tax from the capital gain they get from the property. Second, their assets are their worth. They used their assets to leverage on their investments, e.g. for getting bigger fund for investments. And that’s why you will find some of the rich people are having assets in property not only 1,2,3 or 4 but they could have assets up to 20,50, and even 400 properties.