How to Improve Your Real Estate Investment Portfolio

March 10, 2022by Sterling Homes0

If you are able to find a way to get started with real estate investing, bravo! But how about scaling up from an investor to a tycoon in real estate?

Cardone Capital’s CEO, Grant Cardone, built an impressive real estate portfolio. He made it from his first $78,000 rental house, to a private real estate fund with nearly $1.8 billion in assets under management.

Improving your investment in real estate seems interesting, right? The long term wealth that emanates from this should make you take the next step of building your real estate portfolio, like Grant Cardone.

A real estate portfolio is a collection of both current and past investment assets in the real estate sector, all held by one group or individual. Metaphorically speaking, portfolios are like a resume that identifies one’s accomplishments in assests ownership.

These portfolios include investment properties, real estate investment trusts (REITs), or real estate mutual funds. They can also include properties from different asset classes, which could be single-family homes, apartment buildings, rental or commercial properties.

To improve your real estate investment, you need a great deal of capital and a good understanding to leverage. Growing your portfolio demands hard work, diligence, and a solid plan.

Although, reward and risk are inherently intertwined with improving your real estate investment. Assuming liability for property repairs, difficult tenants, and the mortgage can be daunting, but the reward is great. The height of your risk tolerance will ultimately determine your susceptibility to long term rewards.

Let’s hit the nail on the head. Follow these steps to grow your portfolio.

1.) Know your end goal from the start

Keep in mind there are lots of different reasons to grow your real estate portfolio. Whether it is to serve as a source of reliable monthly income to help with bills or to diversify your portfolio as a whole, you must have a clear vision for what you’d like your portfolio to achieve.

knowing your end goal for your portfolio will help you decide in the next step of improving your portfolio growth; Creating your real estate investment strategy.

2.) Create your real estate investment strategy

There are lots of different ways to invest in real estate. At the beginning, it’s advisable to leverage on a precise strategy for a start.

You can leverage on a buy-and-hold strategy. Purchasing a property and holding on to it for an extended period, before selling. Choosing a fix-and-flip strategy allows you to buy a dilapidated or old property, usually a house or shopping complex, at a lower price and sell that same property at a higher price after renovation.

3.) Buy your first investment property

Purchasing your first property can be exciting but you have to be careful . In this step, your first property’s performance is vital to the success of your real estate portfolio. Your first investment could be the key to unlock more investment opportunity later.

Better still, work with a team of experts who have experience in the real estate industry to guide you through the purchase of your first property. They can help you perform a perform an investment property analysis to ensure your property is financially viable.

4.) Buy more properties over time

As your financial and knowledge capacity expands, buy new properties and add them to the mix. The more accessibility you have to cash and an improved knowledge, the greater your ability to act quickly when new investment opportunities surface.

5.) Diversify your real estate portfolio

As with any investment, putting all of your eggs in one basket comes with a risk. If you diversify your portfolio, your high-performing investments will cover you if the market drops. Real estate investors can diversify by investing in different locations, investing in REITs or investing in different asset class.

The essence of expanding your real estate portfolio cannot be overemphasized. Overall, an expansion will help you get closer to achieving your financial goals.

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