BUILD YOUR REAL ESTATE PORTFOLIO TODAY
People will always need a place to live in. According to recent research, the demand for rentals will remain strong over the next decade. Viewed as a financially suitable option for many Americans, the demand for rental property remains strong.
Investing in real estate continues to rank as a top investment pick for many people. A stream of income from multiple rental properties can set you up for retirement without worrying about economic factors that accompany investing in stocks or bonds.
With something for everyone, now is the time to look at the numerous ways of investing in real estate by building up a property portfolio.
The Low Down on Building Your Property Portfolio
- Do Your Market Research
The great thing about investing in property is that it’s flexible, presenting you with the opportunity to buy in whatever state you chose. Take time to do in-depth market research into the area you are looking at investing in. To maximize returns from your real estate investment, you want to buy property in places with high rental occupancy and a low tenant default rate.
You will also have to consider what type of property to buy in terms of sectional title, freehold, residential, or commercial and whether the property will need renovating.
Even during the pandemic, Florida, for instance, was a popular destination with rental income prospects on single-family homes on the rise according to The New York Times
- Create a Real Estate Business Plan
Building a real estate portfolio requires planning for future purchases while you are still negotiating your first. Real estate investing is about making money; therefore, you should treat it as a business. Your business plan needs to address your goals and objectives when you build a real estate portfolio, which you can hone as you progress. Having a clear, defined strategy in place right from the beginning can keep you in check and on the right path.
- Money Matters
How are you going to finance this investment? Find out what sort of finance you qualify for. Pay off any existing debt and get your credit score as healthy as possible. If you don’t have a lengthy credit history, start saving for a cash deposit before approaching your bank for a loan. Compiling a comprehensive financial plan is a must and needs to include improvement costs and monthly operating expenses.
- Acquiring Your First Investment Property
Starting off small is the sage advice from industry professionals. You need to remember that your first property’s performance is vital to your real estate portfolio’s success. Choosing wisely and buying the right rental makes buying that second property possible.
- Focus on The Future
As you start building your property portfolio and acquiring more properties, you will need to streamline your business. Keeping your tenants happy and being available for them is one of the more fundamental property management factors.
Covering all possible concerns of your properties is vital. By hiring a property management answering service, you provide better support for your tenants in a way that increases their contentment and helps justify rental costs.
There is No Better Time Than the Present
Building a property portfolio amid a pandemic might seem like the last thing you should be doing. But from an investment point of view, buying a property and creating your portfolio can be very lucrative and provide you with a tidy income on retirement.