Tips for Building a Successful Property Portfolio

Two focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. Real Estate has been a pathway to wealth for many people. One of the keys is gathering up as many quality properties as possible. The following contributed post is entitled, Tips for Building a Successful Property Portfolio.

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Building a property portfolio not only takes investing money but also time and careful planning. It is crucial that you set goals, research the market and plan your property moves carefully if you want to turn it into a fully-fledged business.

Expect at the start, to be spending time and energy on ensuring the upkeep of the properties as well as general maintenance. When you have a good number of reliable properties, you can start to outsource those tasks.

Here are some top tips to help you build your property portfolio.

#1 Set clear goals

Defining exactly what you want to gain from building your property portfolio is key to success. This plan will guide all future property locations and purchases, and ensure its growth. If the main goal is building a sustainable income from property management, then you can set milestones along the way so you know how many properties you are aiming for, what investment you need, when you can outsource maintenance tasks, and a realistic timescale. Goals will also help keep you motivated.

#2 Ensure the properties are in good condition

Unless you have unlimited funds and time, investing in a property that is in decent condition can keep your project moving forwards. It may seem like a good idea to invest in a run-down property because you can purchase it at a lower cost, but it will take a lot of time, money, and energy to fix the project with the added risk of losing money rather than making money. This is where sticking to your goals is important to continue growing your business because it will mean making a profit quicker.

#3 Seek new opportunities

Once you are comfortable with a few properties, it might be time to seek new opportunities to help increase the equity in the properties. You can dedicate some of your budgets to renovate the properties and add extensions, or even add extra amenities in the house so you can divide into a house share. There are endless opportunities when you have a more flexible budget to grow your business even more.

#4 Be prepared to work hard

While growing your property business, at first it is going to mean getting your hands dirty in order to stick to the budget. This can be anything from interior and exterior repairs, maintenance, fixing any issues as well as sorting contracts. It might be beneficial to invest in basic household equipment such as cleaning supplies, high-quality tools such as lawnmowers, wheelbarrows, and the best commercial weed eaters (you know how hard those are to remove!) as well as basic office supplies such as a printer. This basic equipment can save you a lot of time and money and can be used in all the properties to cover the basic maintenance and duties of the landlord.

When embarking on the property portfolio journey, while it can be challenging, it is worthwhile. Take time to do your research, set goals, and plan, to ensure your portfolio grows quickly and turns a good profit.

Author: anwaryusef

Anwar Y. Dunbar is a Regulatory Scientist. Being a naturally curious person, he is also a student of all things. He earned his Ph.D. in Pharmacology from the University of Michigan and his Bachelor’s Degree in General Biology from Johnson C. Smith University (JCSU). Prior to starting the Big Words Blog Site, Anwar published and contributed to numerous research articles in competitive scientific journals reporting on his research from graduate school and postdoctoral years. After falling in love with writing, he contributed to the now defunct Examiner.com, and the Edvocate where he regularly wrote about: Education-related stories/topics, Science, Technology, Engineering and Mathematics (STEM), Financial Literacy; as well as conducted interviews with notable individuals such as actor and author Hill Harper. Having many influences, one of his most notable heroes is author, intellectual and speaker, Malcolm Gladwell, author of books including Outliers and David and Goliath. Anwar has his hands in many, many activities. In addition to writing, Anwar actively mentors youth, works to spread awareness of STEM careers, serves on the Board of Directors of the Friends of the David M. Brown Arlington Planetarium, serves as Treasurer for the JCSU Washington, DC Alumni Chapter, and is active in the Dave Ramsey Financial Peace Ministry at the Alfred Street Baptist Church. He also tutors in the subjects of biology, chemistry and physics. Along with his multi-talented older brother Amahl Dunbar (designer of the Big Words logos, inventor and a plethora of other things), Anwar is a “Fanboy” and really enjoys Science-Fiction and Superhero movies including but not restricted to Captain America Civil War, Batman vs. Superman: Dawn of Justice, and Prometheus. He is a proud native of Buffalo, NY.