Successful real estate investors, similar to that full service real estate company , have one thing in common: they work hard to expand their property portfolio. While owning just one property may indeed provide some cash inflow, investing in more is one of the keys to building massive wealth and attaining financial freedom.
Many investors have started small. Often, their first few investments are located within their city or state. If you want to expand your real estate portfolio, you must be ready to broaden your horizon because it’s a whole new ballgame. You need to look at different property markets not just in places near you but also in other parts of the globe. For instance, you can look at the best places to buy in London 2021 and take part in one of the fastest-growing real estate hotspots in the world.
Of course, one of the most significant issues that prospective investors need to face is where to get the capital to buy more properties. Assessing all the benefits and key reasons to invest in more properties will count for nothing if you don’t have the means to buy more homes, buildings, or land. You need money to make more money. But if you play your cards right and plan your investments accordingly, you can use your existing property to expand your portfolio.
Expanding an investment property portfolio may not be for everyone. There are many considerations when buying or selling real estate , more so when investing in several properties across different locations. But to make it big in the real estate business, growing the number of properties you own is the way to go.
Below are some ways you can expand your real estate portfolio.
1. Start With Your First Property
This one may look obvious, but before you can grow your portfolio, you must start with one property investment. Your first real estate will be the foundation upon which you’ll build your property investment empire.
But don’t get too excited when selecting your first real estate. Investment isn’t a race, so you don’t necessarily have to buy the first opportunity that falls on your lap. Understandably, shelling out a considerable amount of your hard-earned money is hard to do, but it would help if you weren’t too fussy about everything either. Keep in mind that you’re buying a house for flipping or investment and not a forever home.
2. Try To Leverage What You Have
If you already have at least one real estate, you can boost your chances of expanding your property portfolio by using your equity as leverage.
There are two ways to do that. One, you sell your home and use the proceeds to buy another property. Just be sure that you’re selling your property for profit. Make sure that the new real estate you’re eyeing has excellent earning potential, too.
Two, you borrow money against the existing equity of your property. It would be wise to borrow when the rate is low. Just make it a point not to overburden yourself with debt. If you’re unable to pay your mortgage, you could end up losing your property.
3. Enhance Your Property’s Value
Another way to boost your real estate portfolio is through improvements and renovations. If you have some money to spare, updating the layout and aesthetics of your property could make it more attractive to high-end lease offers.
Sometimes, even just a fresh coat of paint could do the trick to help increase the value of your rental. With a higher rental income, you can save up for the down payment for more properties.
4. Be Always On The Lookout For Off-Market Deals
Not all properties are advertised online, nor can they be found in listings. Motivated sellers market attractive but low-priced properties through word of mouth or private networks. To be in the loop for information about such undervalued homes, you need to expand your network of real estate agents.
It would be best to join real estate auctions, seminars, or even online groups. Moreover, learn how to do cold calls so you can make offers even before the properties you want are presented for sale to the general public.
5. Consider Getting A Property Manager
When you’re just starting with one or two rental properties, you can still manage your investments on your own. However, if you already own several homes or buildings, it would be wise to work with a reputable property manager to help you acquire properties.
Some of the services that property managers offer include:
- Rent collection
- Screening of tenants
- Dealing with repairs and tenant issues
- Getting your properties up to date with local ordinances
- Helping improve the image of your properties
To grow your portfolio effectively, always focus on finding new investment opportunities and avoid getting bogged down by managing your existing investment properties.
Bottom Line
There are many reasons to invest in real estate , even though there are plenty of obstacles at the beginning. Still, once you’ve tasted the fruits of your real estate investments, it would be easier for you to find ways to expand your portfolio. Remember to stick with properties that offer the best ROI.
