March 10


Getting Started in Real Estate Investing: Building Your Portfolio

How do you build a real estate portfolio? 

Well, one of the ways is by leveraging the current properties that you already have to buy more. 

How do you do that? You do value-add improvements. So you bring value up, and then you look to do things like a home equity line of credit against that property, a cash out refinance, or potentially selling it so you can double down. 

Of course, you can buy more properties through the cash flow of your current properties but a lot of times, in a best-case scenario, I see that takes like six to seven years; wherein like a two-year time horizon, if you play it smart, you can bring the value up and you can double down and keep multiplying that portfolio much faster.

I recently had a client buy three duplexes for the price of one. How did he do this? He did it on a 10% down contract for deed. Now why three for one? Well, if he were to purchase this on a 30 year fixed mortgage on a traditional route, he would have put about 25% down, add the closing costs on top of that, he would have put about 30% down. 

There are ways to get creative and to buy properties faster, you just need to think outside the box and go after some off market properties. Which takes a little bit of work, but the reward pays off greatly in the end.

One of the best ways to find off market properties is to look for a list of investment properties. Most cities have a rental license database, which means that anyone who has a rental property has registered with the city. 

Someone who is renting out a property is more likely to sell a property than someone who is living in a property because it is just a financial move for them, not a big lifestyle change. 

So call a rental license database, call the phone numbers, email people, that is going to be the easiest way to find an off market deal and start adding to your portfolio.


You may also like

Investing in Class B Housing
Leave a Reply

Your email address will not be published. Required fields are marked

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}

Stay Connected With Eric