As a real estate investor, few things are more crucial to the health of your financial future than the health of your portfolio. But what constitutes as a healthy real estate investment portfolio? What is your responsibility as a passive investor? Even though you are technically a “hands-off” real estate investor, your role still demands attention. Think of yourself as the captain of the ship! While your crew gets the heavy-lifting done, your hand is at the wheel, steering the ship towards its destination.
No matter where you are in your journey as a real estate investor, there’s no time better than the new year to align your priorities and adopt a growth mindset.
Why Focus on Portfolio Growth?
How many investment properties are enough? When do you know you need to buy? Why buy more in the first place? These questions have different answers based on what you truly want out of your investments, how much risk you are willing to take on, and how exponential you want your wealth to become.
Investing in real estate is only lucrative in multi-property portfolios. This is the context in which it makes the most sense. When you invest in more than one property, you grow your passive cash flow, your net worth, and your leverage.
Be sure to check out: 6 Considerations in Deciding to Scale Your Real Estate Portfolio!
The “how much is enough” question depends on your desires. Do you want to quit your job and retire early? The answer lies, then, in how many properties it takes to compensate for that income stream.
Portfolio growth goes hand-in-hand with wealth growth. No matter how you invest, you can’t ignore this vital part of investing in real estate. Though you may feel content where you are now, there is always room for more.
How Quickly Should I Scale My Portfolio?
This is a big question that comes up for real estate investors. When’s the right time to buy a new property? How do I know? These are very personal, tailored questions to answer. Our general guideline focuses on the sustainability of your portfolio. While acquiring new investment properties can be exciting, building your portfolio shouldn’t come at the cost of increased risk or brash financial decisions. You want to ensure that you have ample resources to take on a new property and cover any contingencies that could arise.
Thankfully, turnkey real estate investors don’t have to worry about whether or not they have the capacity or reach to manage their properties. Our expert teams are in place in seven world-class markets (and counting), ready to manage any new property you might add to your portfolio. You are limited only by your own ambition.
3 Proactive Steps for Portfolio Growth in 2020
Take sustainability into consideration.
Just above, we mentioned the importance of a sustainable real estate portfolio. What this really involves is the tracking and monitoring of portfolio performance over time. While there may be surprises along the way, charting property performance can give you a clear picture of the state of your investments and whether or not you are in a stable enough place, financially, to expand.
Thankfully, your turnkey provider (our team!) creates a smooth, efficient investment experience. Because we have over a decade and a half of experience in the industry, we know better than most how to hit the ground running and ensure headache-free rental property owner experiences.
That said, when you have assessed portfolio growth along with your finances and cash flow, you are better able to plot out and estimate the best times for further property acquisitions.
Consult with your adviser.
One of your best resources as a turnkey real estate investor is your adviser. Here, we value our relationships with our investors. We aim to be there for the long-term, allowing you to form a real relationship with your adviser. As such, they have a handle of your properties as well as your ambitions. There’s no one better to talk to if you want to scale your portfolio. They will help you select the right markets, financing, and overall strategy for growing successfully.
Target your markets.
For real estate investors, just owning properties isn’t enough. We must always be thoughtful and intentional in each decision we make. In order to build not only a large portfolio but a strong, curated portfolio, consider the markets at your disposal. The diversification of your portfolio not only mitigates risk but it allows you to tap into several up-and-coming markets. Don’t limit yourself. Instead, search out the opportunities that fit what you desire to accomplish.
Start building your premier passive real estate portfolio today!
