Want to go from being a beginner landlord to a property investor with a large profitable portfolio? Here are some of the many things you need to consider.
Anyone can scale a property portfolio – but experience and knowledge are crucial. Start small – in case you fail your risks are low. Start smart – in case you fail – you still have a valuable investment for cushion.
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Learn all the industry ropes and find a mentor or business who can help you do what they have done.
If you’re confident you’ve got what it takes and you’re ready to take the next step in your property business, here are the top 5 tips to help you scale –
1. Diversify
Many investors do this to lessen the risk since the property market is always changing. In the event of a property market shift like COVID, with a diverse portfolio, you can steer your way through challenging times and still make money.
Diversifying your portfolio by investing in different property strategies like Buy to lets, HMOs, developing, and having a mix of commercial and residential property types will give you flexibility. Investing in different locations where there are different opportunities available is something you might want to look into.
2. Relationships
To scale any business, relationships are key. In property, a solid connection of suppliers and people that will help you take on properties and make a success of them is your lifeline. Trust is key in building relationships.
This includes anyone involved in the property from tradespeople, estate agents, finance brokers, project managers, deal sourcers, and especially brokers who work for you but ARE PAID BY THE BUILDER.
3. Finance Deals
Like any business, finance is your make or break. A finance broker will be able to advise on a range of options, some less conventional than others, to help you scale your portfolio in ways you wouldn’t have thought of.
Positive Income Properties works with specialised brokers experts in finance for NDIS, Duplex, Dual key, and Co-living properties.
In any investment strategy, it’s crucial you keep your finances in check and credit in good order. This will give you access to the best finance deals available to help you buy more property and grow your portfolio.
The exit strategy of your investment will have a big impact on the finance available to you, lenders will be more willing to offer you better deals if your finances are in good standing.
4. Strategy
Some investors invest for cash flow, while some invest for an increase in the value of the property (capital gains). However, by diversifying your investments it is possible to benefit from both strategies.
Invest and diversify with a clear strategy – you have to be able to adapt to market changes and personal circumstances. Take advise when offered and do your due diligence in a timely manner.
The key is to take calculated risks by understanding your strengths and weaknesses as well as the market and the opportunities available to you. Lessen the risk with knowledge and a plan and a goal.
5. Brokers
While property brokers will charge a fee, some will be paid by the builder at no cost to you.
Brokers will do their best to find you the best investment opportunity and you don’t have to waste time and effort by doing it yourself. Imagine an unchartered location – investing in an area you are not familiar with and do not have time to search for and view properties can be very challenging.
In order to scale, you need to acquire as much valuable property as possible, and brokers such as Positive Income Properties can make this possible in a shorter space of time than you could do on your own.
Gil Elliott is the Managing Director and Founder of Positive Income Properties. Gil has a rich background in business consulting and property investment. All of these he gained in his nearly four decades of experience in the real estate and marketing industries.
