The goal of every investor is to grow his/her investment portfolio all the time. This holds true for real estate investing as well. While having a single family home to rent out in the suburbs of Boston is a great way to make money in real estate, it is much better to own multiple investment properties of different types and sizes and in different locations throughout the US. That’s when you will be able to make lots of money as a real estate investor. Buying, managing, and renting out multiple real estate properties might sound like an impossible endeavor, but it is totally achievable if you work carefully and diligently in your career as a real estate investor. Here are some tips on how to grow your real estate investment portfolio applicable to any and every investor out there.
Grow your real estate investment portfolio at all times
Let’s settle this from the very start: the key to growing in real estate investing and being able to make money is persistence and dedication. If you want to grow your real estate investment portfolio to a level where your competitors will be envious, you have to work on it all the time. Explore every real estate investment opportunity and look for new rental properties at all times. Real estate experts recommend buying a new investment property every 2-3 years, so consider this piece of advice.
Do not rush your real estate investment decisions
The point is not only to grow your real estate investment portfolio for the sake of growing it but to grow it smartly. After all, you want the direct result of having a larger real estate investment portfolio to be making more and more money. So, while trying to not miss good investment opportunities, make sure you always take enough time and put enough efforts into choosing the good investment deals and those that will let you make money in real estate.
Learn all the time
Real estate investing is largely learning by doing. It is a very dynamic business which requires expert-level knowledge which is always up to date. This means that as a real estate investor looking to expand his/her investment portfolio, you should also be expanding your real estate knowledge all the time. Use various sources such as books, magazines, websites, blogs, podcasts, experts, partners, and your own experience – both mistakes and successes.
Try out different real estate investment strategies
A good investment portfolio is not only a large one but also a diverse one. So, it is important that you diversify your real estate investment portfolio while expanding it in size. The most straightforward way to do that is to go for different types of real estate investments. There are so many strategies in real estate investing that you will never run out of options. Make sure to include traditional rental properties, Airbnb rentals, corporate rentals, commercial real estate, and shares in REITs in your real estate investment portfolio.
Go for different types of properties
On the way to a diverse investment portfolio, don’t forget to add various types of investment properties. Some of the top and most profitable examples include single family properties, multi family homes, studio apartments, condos, furnished apartments, and corporate rentals. The real estate market is a dynamic one, and different property types become dominant in different times. Thus, if you have a well diversified investment portfolio, you are guaranteed to make money from real estate at all times.
Look for various locations
Location is a key determinant of the success of your real estate investment endeavor and one more way to diversity and expand your investment portfolio. As you grow your real estate investment business, don’t limit yourself to just one housing market. Explore different locations including various states, cities, neighborhoods, and streets. Also try out urban versus rural locations. Think about college and university towns. Although the real estate market is a relatively stable one, there is no way to guarantee a crash would not happen. If one local housing market is about to crash, it’s best to have investment properties in various housing markets to still continue making money.
Play around with different rental strategies
Traditional rental properties are long-term rentals, where you get a tenant to rent your income property to for a year or more. However, after the emergence of Airbnb, short-term rentals are becoming more and more popular. As a real estate investor looking for opportunities to grow his/her investment portfolio, you should explore both rental strategies. Other options that you also could look into include: furnished vs. non-furnished apartments, corporate rentals, and more.
Engage in real estate partnerships
Real estate investing can be done on your own or with others, and both methods have their pros and cons. One of the major benefits of entering into real estate partnerships is that they give you the opportunity to grow your investment portfolio faster. Although as a real estate partner you will own only parts of investment properties, you will actually own a larger number of rental properties. This means that partnering allows you to expand your real estate investment portfolio faster and more.
Look within your real estate investment network
Regardless of whether you prefer to work on your own or with partners in your real estate investing business, one thing is certain – you cannot do it all on your own. You will need other real estate experts and professionals, such as real estate agents and brokers, real estate lawyers, financiers, accountants, sellers, buyers, wholesalers, flippers, and home appraisers, in order to be a successful real estate investor. You will also need them in order to grow your real estate investment portfolio successfully. The people from your real estate investment network together are an endless source of information about the best deals available in the market at any point in time, so make sure to mingle with them in order to stay up to date.
Make use of your previous investments
While growing your investment portfolio, always remember to make use of your previous investments. First of all, learn from the mistakes you did with them and from the successes you achieved with them. Second, after you’ve paid the mortgage on your investment properties, start saving up the positive cash flow from them to buy a new rental property. Make your investments work for you!
Last but not least, as an aspiring real estate investor, you need to take advantage of contemporary real estate investing tools, and Mashvisor is one of the most important ones on the market now. Mashvisor will help you grow your investment portfolio in a number of ways including facilitating your search for new rental properties, helping you with the real estate market analysis and investment property analysis, allowing you to make the best real estate investment decisions, and providing you with lots of real estate investment tips and advice.