Turning a business venture into real estate requires patience, determination, and knowledge. Learning how to build a real estate investment portfolio will help you further your career and is a quick way to ensure everything goes according to plan. There is no one way to make a portfolio; instead, your portfolio is more like a resume to showcase your hard work and impeccable property selections.
Flesh Out Your Goals and Strategies
Begin making your portfolio with an end goal in mind; this can help you figure out the investment strategy you want to take. Pick one method to start so as not to overwhelm yourself right away in the beginning; you can diversify the strategy later. Consider all financial options, such as hard money lenders, cash financing, a conventional mortgage, seller financing, partnerships, etc., and get all your ideas down on paper to help organize your thoughts and plans.
Create a Business Plan and Find Real Estate Professionals
If you plan to bring in partners or real estate professionals to help finance your first investment, curating a business plan will show your level of sincerity and the big picture of what they will be getting themselves into. This is also an excellent opportunity to show individuals how you plan to grow your portfolio and investments; will you grow exponentially? Or linear? The requirement of a business plan is not necessary but could be an effective tool in helping you keep track of your goals and numbers.
Purchase Your First Property
If you think you have all the successful traits of a real estate investor, you can begin searching for the first property you’ll purchase! You won’t want to buy the first property you like; make sure to calculate an investment analysis to ensure you won’t be putting yourself in the hole by purchasing this real estate. Getting help from a real estate agent on your first purchase can help you learn the ins and outs of the business.
Pro tip: start in your local real estate market because you’ll already know the area and geography of roads, businesses, and other properties.
Diversify Your Portfolio
Now that you have your foot in the door and are on the road to success, you can start to diversify your investments and add more to your portfolio. You can do this by diversifying your asset class, investment strategy, or real estate market.
Diversifying your assets could mean branching out and purchasing commercial real estate or apartment buildings. Expand your market to long-distance properties and others such as coastal homes, multifamily homes, etc. Change your investment strategy by dabbling in the fix-and-flip industry or the buy-and-hold approach to grow your finances.
There is no right or wrong way to build a real estate investment portfolio. Never stay stagnant in what you are doing, and consistently seek to expand and grow your opportunities. There are plenty of options on the market, and if you don’t like the direction you are going in, you can always change your course.Marla Stone, MSW REALTOR® License ID: 01823712 Nora Gallogly Group Beverly & Co. DRE#02078273 i-deal-lifestyle.com | Direct (949) 709-7000 | Connect with Marla on Instagram & Facebook! Marla is the Author of The Clutter Remedy: A Guide To Getting Organized For Those Who Love Their Stuff
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Marla is known as the Declutter Your Strategy™ expert. Marla earned her BA in Psychology and a Master's in Social Work and is the founder of