Table of Content:
- Start With Learning About Real Estate Investing
- Strategize And Create A Business Plan
- Start Investing In Properties
- Utilize Analytics And Investment Tools
- Start Acquiring More Properties
- Expand And Create A Team of Real Estate Professionals
- Diversify Your Portfolio
In-depth market research and strategizing to invest in the right properties are not enough to succeed in the real estate sector. Most novice players in the real estate industry assume that building a professional portfolio is only for those individuals who have been in the industry for a long time now and are big players. A rule of thumb is to have your real estate portfolio in place. You will be surprised to see the huge difference building a portfolio can have in your career right from the very beginning.
If you want to achieve your long-term goals and make profits that will last a lifetime, you need to start building your portfolio as the first step. This real estate portfolio acts as the backbone of your expertise and can be considered a resume in this industry. From the assets that you have to the milestones that you have achieved throughout your journey as a property investor, a portfolio includes all this and even more.
Once you have a portfolio in place, you can also use it as a marketing tool that showcases your strengths and achievements. This will allow you to land good deals and receive better offers on properties and investments.
Also Read: Fractional Ownership: A Promising Real Estate Investment Trend Is Here To Stay!
Building Your Real Estate Portfolio From Scratch
On most days, we come across people that have the potential of becoming our future lenders or even buyers. In such a situation, having a portfolio will give you an edge in the way that you can advertise it to these people and have a greater chance of receiving better profits and higher rates of returns. When professionals see that you have made the effort to collate all your strengths and milestones in form of a portfolio, they will also realize that you are serious about the work that you are doing.
Now here comes the tricky part - how do you build this real estate portfolio, and what are the elements that go into making your portfolio stand out?
A well-built portfolio has been built with effort and includes everything that there is to know about the individual as an active participant in the real estate market. Even though the components of a portfolio will differ from investor to investor, the steps that you can use to create one are more or less the same. While you can create your strategy when building the portfolio forms scratch, we have collated a list of steps that are the most efficient and have been used by major investors that exist in real estate today.
Following these steps and being consistent with the same will not only help you create a quality portfolio but will also help you grow your business in more than one way.
1. Start With Learning About Real Estate Investing
If you deep dive into the process without knowing the know-how first, you are bound to make mistakes that might cost you in the long run. Learning about real estate means gathering information about all aspects of the industry. From market trends and property growth to due diligence and how to buy properties, you need to be knowledgeable about everything. The most important thing to learn and excel in is how you can analyze and utilize the investment opportunities that come your way. Begin with your research and go through as many trustworthy resources as you can find on the real estate market.
2. Strategize And Create A Business Plan
Real estate is no less than conducting business. A business plan means that even though you are yet to invest in your very first property, you already have a plan in mind about investing in your 5th and 6th! Note down strategies that work best for you, and create a detailed business plan for the future. Creating one now will also help you predict and face unforeseen scenarios that may come your way at one point or another. Make sure your business plan has the following elements:
- Financial Planning
- Investment Goals and Objectives
- Investment Strategy
- Future Plans for Investment
- Expected Outcomes
3. Start Investing In Properties
By now, you have the needed knowledge and expertise needed to invest in a property. Finalize a property for investment with the mindset that this property will determine the foundation of your business portfolio. Start looking at properties for sale and shortlist those that match your needs and requirements. It is you who has to choose wisely, so do not hesitate to consult or take professional advice from a qualified real estate provider.
Do you still feel you are not ready enough? No problem, take a small step by following these steps before investing in a property -
- Make a decision influenced by your mind, not your heart! Do not let your emotions get the better of you.
- Make a list of other financial costs that come with owning an investment property, and set your budget accordingly.
- This is your first purchase, so don't hesitate to start small.
- Conduct a thorough market analysis and then choose the locality for your property investment
4. Utilize Analytics And Investment Tools
Calculations, calculations, calculations! Yes, we said it thrice so that you know how important this task is. Get familiar with calculating real estate investment since that is the only way you will know which property investments are worth your time. Just in case math is not your strong suit, you can use tools like clicworth to determine the value of any property in India. All you have to do is put in the address and the nature of the property, and there you have its estimated market price of property right in front of you on your screen!
5. Start Acquiring More Properties
Investing in real estate is a process that cannot be paused mid-way just because you earned or did not earn great profits on your first property investment. If you are feeling demotivated and not too confident, understand that mistakes are a part of every industry. You can act quickly and move on from setbacks that will help you recover. The faster you act in investing in more than one property, the more accessibility you will have to an increased cash flow.
6. Expand And Create A Team of Real Estate Professionals
Management can often become an issue once you have built your foundation and are now moving towards expanding and acquiring more properties. You need people to help you take care of and grow your portfolio at all times. The only solution here is to start outsourcing. For instance, you can hire a home inspector that will lead all your home inspections before you decide to invest in a property. You can also utilize use of modern technology and make your daily tasks easier. A good idea is to also hire a property manager that will assist you in your day-to-day property-related tasks and sort out all legalities for you.
7. Diversify Your Portfolio
Be open to getting out of your comfort zone. Just because you have gained experience and expertise on one aspect of property investment, it does not mean you will only stick to that and not expand your assets. Think about when the market drops; diversifying your portfolio will cover you up and keep you at bay in case such a situation arises. As they say, putting all your eggs in one basket is not always the wisest decision!
Before you start with your journey of building your portfolio, ask yourself this simple question - what do you aim to achieve after you have completed building your investment portfolio? Reflect on the answers that come to your mind, and then proceed from there. Make a list of the components you feel are most important, and the ones that must be included. For a head start, you can also do some research on portfolios of renowned real estate investors.
While you always have an option of not building a portfolio altogether, we suggest that building one will do you more good than you can imagine. Focus on your assets and include numbers wherever possible - they are the most impactful when it comes to cracking deals.
We feel we have covered everything that there is to know about creating your portfolio and the elements that go into its successful creation. We suggest you begin building the moment you get the chance and see how it goes. If you face any challenges, doubts, or concerns along the way, we at Clicbrics have got your back!
Remember that there is no such thing as a “wrong question” when you are on your journey of creating a successful career in real estate!
Suggested Read: How AIF Is Becoming The New Way of Investing In Real Estate