Understanding how you can increase your portfolio of rental properties is an important part of owning residential investment property. Today, we’re talking about property investment strategies and how to grow your property portfolio.
How to Invest in Property: Goals and Criteria
Whether you’re looking for appreciation or cash flow properties, the first step is to write down your long term goals. Why are you doing this? It’s more than just making money; you own investment property to provide a financial future for you and your children, or to be financially free. Whatever the reasons, you want to write down your specific goals. Then, you can develop a strategy around those goals. This will help you identify the types of properties you want to add to your portfolio. Everything you buy should fulfill your predefined property investment strategies, so be as specific as you can. This will make it easier to pull the trigger on the right property.
Your Portfolio Investment
Next, you want to make sure your financing is in order. Ideally, you’ll have some cash set aside to allow for an immediate purchase when you see a great opportunity. If you don’t have the cash, make sure your preapprovals and qualifications are in order. Work with your bank or mortgage company so you won’t have to wait for the right financing documentation. When you see the ideal opportunity come across your desk, you want to make a move right away.
Networking and Relationship Building
Make sure you’re networking with like-minded people. Attend real estate investment association meetings. Meet other investors. Take people out to lunch, and invite them for coffee. When you really get to know other investors, they’ll know what you’re looking for in rental properties. Then, they can contact you first if they hear of something that matches what you want. Real estate is really a relationship-driven industry. Having those relationships in place is important when you’re growing your portfolio.
Look for opportunities off-market. While the MLS is a great resource, you have to act quickly to beat the competition. Other opportunities can be found if you get in touch with local wholesalers, attend foreclosure auctions, and buy properties directly from other investors.
Develop a Talented Team
Most importantly, you need to have a great team working on your behalf. When your team knows what you’re looking for, they can find great properties for you. Put together a network of mortgage brokers, property managers, real estate agents, and attorneys. These are professionals who run into people every day and see properties all the time. If they know what you want, they can help you be successful.
If you have any questions about how to be a more successful real estate investor, please contact us at Sunnon Property Management. We serve the greater Charlotte area, and we’d like to be a resource for you when it comes to investment properties.