To become one of the most successful real estate investors you should strive to grow your real estate investment portfolio all the time. Owning and renting out an income property somewhere in the suburbs is a great way of making money in real estate. However, it is better to own a couple of investment properties for generating a bigger profit. Moreover, it is advisable to own multiple income properties in different locations and of different size and type in order to start making money in real estate in a safer way. This is because even if the real estate market negatively influences one of the properties, it might not do the same to the others if they operate on a different strategy.
What is the challenge that every real estate investor may face when managing diversified investments? Well, from the beginning it may sound impossible to be responsible for different investment properties. Still, you have all the chances to succeed. All you need to do is to operate wisely and carefully in order to succeed in real estate investing. Keep on reading to find out how to grow your real estate investment portfolio the easy way.
#1 Growing Your Real Estate Investment Portfolio Step One: Expand Your Knowledge in Real Estate Investing
In order to be successful in the real estate investing business, you should constantly improve your knowledge. Investing in real estate is a dynamic activity, which requires that a real estate agent or investor keeps up to date with everything that happens in the real estate investing market. Consequently, if you plan on growing your real estate investment portfolio, you should constantly develop yourself. Consider real estate education as a first step towards becoming one of the most successful real estate investors or real estate agents. However, where can you obtain real estate education?
Real Estate Websites
Nowadays, all the information is available online. Real estate websites are a great source for real estate education. A few clicks and you are able to find any information, like “out of state real estate investing.” There is a huge number of real estate websites that can help you develop yourself in the world of real estate investing. Mashvisor is a great example of the best real estate websites which is full of useful real estate information.
Real Estate Books
Apart from real estate websites, there are plenty of real estate books. Real estate books are another great way to obtain some real estate knowledge. Therefore, if you are curious about the best ways of buying an investment property, for instance, just visit the library or a bookstore and select a few real estate books right from the shelf.
Curious to find out more about real estate education? Make sure to read “What’s the Real Estate Education You Need to Start an Investment Business?”
#2 Growing Your Real Estate Investment Portfolio Step Two: Making Use of Real Estate Investment Tools
Growing your real estate investment portfolio successfully is a challenging activity as you need to select only the best real estate investments. Completing the steps manually will take you months until you find the best income properties. That is why you should use real estate investment tools in order to grow your real estate investment portfolio the easy way.
Investment Property Calculator
The investment property calculator is the must-have tool that calculates real estate metrics in seconds. For instance, Mashvisor’s investment property calculator will provide you with neighborhood analysis and detailed property information. Therefore, selection for the best location and property is guaranteed. Moreover, this tool enables you to choose the financial method you will use for more precise results.
Using the heatmap is one of the great ways for selecting the best real estate investments. These are the ones which will generate high profits for the real estate investors. This tool will help a real estate investor select the location with the highest cash on cash return, rental income, Airbnb occupancy rate, etc. Moreover, with using a heatmap, you will be able to avoid negative cash flow income properties. Thus, you will be able to grow your real estate investment portfolio easily. In a nutshell, in order to select the best real estate investments, the most successful real estate investors use a heatmap. Interested to learn more about the heatmap? Make sure to read “Investing in Income Properties Using a Heatmap: The Way to Go.”
#3 Growing Your Real Estate Investment Portfolio Step Three: Buying an Investment Property
After the real estate education and selection of real estate investment tools, it is the right time to start with buying an investment property. You may choose such strategies as long and short term rentals as well as fix and flip. However, if you are new to real estate investing, it is advised to invest in only one income property in the beginning. Afterward, you may consider out of state real estate investing and dealing with diversified real estate investments. Let’s explore what these are.
Out of State Real Estate Investing
Some real estate investors prefer investing in real estate in the same neighborhood, close to home, due to the fact that this gives them a sense of assurance. However, sometimes out of state real estate investing is the better choice. Let’s explore when exactly this is the case.
You will not be able to grow your real estate investment portfolio if the current housing market does not offer profitable income properties for purchase. This means that, at this stage, in order to prosper in the real estate industry, you will need to turn to out of state investing. Another example of choosing a different state for your next investment is when your preferred strategy does not fit in the local market. For instance, if you prefer working with Airbnb rentals only and you cannot stand the idea of investing in long term rentals, but your local market is all about traditional rentals, then this is a serious bottleneck of your career. In such cases, in order to grow your real estate investment portfolio, you should begin with out of state real estate investing.
Diversified Real Estate Investments
What does a successful real estate investment portfolio look like? Well, it should not be only large, but also diverse. Diversified real estate investments in the real estate investment portfolio are actually different types of real estate properties. Moreover, they could be located in different housing markets. What are the benefits of diversified real estate investments? Well, when you are investing in real estate, either in different markets or in income properties, you lower the chances of losing money due to an appearance of a specific problem with an investment or if a housing market crashes, for example. Being in charge of diversified real estate investments means that one negative cash flow income property will not have a tremendously negative effect on your career as a real estate investor. Consider diversified real estate investments in your real estate investment portfolio. Curious to learn more about diversified real estate investments? Make sure to read “Diversified Investments in Real Estate – A Basic Guide.”
To learn more growing your real estate investment portfolio, continue reading our blog.