Building your real estate portfolio can be likened to playing a game of Monopoly. If you go too hard at the start of the game, you can quickly find yourself cash poor and mortgaging your properties just to stay in the game.
In this article, we reveal the ultimate game plan to start building your real estate portfolio. These tips will not only see you blitzing your friends over a friendly game of Monopoly but will have you winning at property investments in real life too.
Property investment guru Leonie Fitzgerald from Wealthology is an expert in building real estate portfolios. Having purchased her first property when she was just 18 years old, Leonie is an advocate for financial freedom. She’s a market savvy property investor with an unquenchable thirst for self-education with knowledge that empowers and inspires. Leonie has a burning desire and determination to help others pursue wealth and create an amazing lifestyle.
Want to know the best strategy to building a successful real estate portfolio? Well, think of property investment as a stairwell to the top. Leonie reveals how it all starts with taking that first step, starting at property number one.
The 5 Step Game Plan To Begin Building Your Real Estate Portfolio
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1. Don’t Break The Bank
Your first property should be one that doesn’t break the bank to purchase and maintain. Don’t forget to factor in vacancy and maintenance dollars as mortgage underwriters do when qualifying you for a loan, so ensure you do too, to stay on the side of caution.
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2. Maximise Cash Flow
Aim for something that offers cash flow. Multi-family housing is great for this. There are typically restrictions of who can rent and for how long, association dues, and so family homes are typically favourable. Being near a school is often an attractive feature for a possible tenant.
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3. Favourable Property Attributes
Look for property attributes that good tenants will appreciate for instance, a garage – people that store “stuff” may live there longer. That is the goal, to find a good tenant for long term, isn’t it? Remember… what fair market rent is today may not be fair market rent in a few years.
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4. Maintenance Plan
Seek out a property that allows a cash flow for maintenance. The roof, air con, and refrigerator all have a shelf life. Not to mention when you need an electrician or plumber – just be ready to maintain the home to keep your great tenant in place.
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5. Prepare For The Next Step to Building Your Real Estate Portfolio
Financing doesn’t have to come from a bank. Remember when you passed “go” and collected $200? Use your cashflow from your first property to save your deposit for the next one.
For an insight into Australia’s property hotspot, check out Leonie’s blog.
Thanks to Leonie for her expert knowledge
Leonie Fitzgerald
Wealthology Founder & Investment Specialist
Phone: +61 (0)423 465 038
Email: hello@wealthology.com.au
Did you find this article about building your real estate portfolio helpful? Here are some other articles about landlords, investing and purchasing property that other readers have found helpful :
- How to Be Mortgage Free In Ten Years
- How to Save Money to Buy Your First Home
- Ten Tips For Buying Real Estate That Will Save You Money
- 6 Things Every Property Investor Should Know When Buying
- The 7 Vital Facts You Need to Know As a Buyer In a Multiple Offer Situation
- How To Be The Winning Bidder At An Auction
- How To Buy At Auction. 14 Things You Need To Know.
