Discover the number one secret to building your real estate portfolio

Discover the number one secret to building your real estate portfolio

 

If you want to build your real estate portfolio first go against the norm which says save 10% invest it in some slow growth stocks make/mutual funds and wait for it two mature in 50 years.

That is the reason why many inexperienced real estate investors accumulate rental properties at a slow pace.

They buy one property at a time, wait for a few years and another property in two to three years.

That is what we call a linear type of portfolio building, slowly and gradually.

However, here is a new way to achieve faster growth in real estate investing

You buy one property in one year, and your first property requires a lot of time and energy during the process

This provides you with the opportunity to gain knowledge and experience to build on before you buy your second property, for example, either 2 units duplex or two townhouses

That means you already have three properties in two years, and your knowledge and experiences get better and grounded for the next property.

With the gained broader experience and knowledge, you buy fourplex, a pair of a duplex in the third year then in the 4th year you double again and buy your eight units and so forth.

To work effectively and efficiently, you must adopt a rental business system which should encompass leasing, collections, bookkeeping and admin, maintenance and customer service.

Leasing involves lead generation, property showing, tenant screening and lease signing

Collections are like providing oxygen with the business to breath, that is cash.

Regular invoicing

Recovery, depositing and tracking of rental, preferably utilising software that can make the process much more comfortable in this new era. Thankfully our property management company uses new edge technology.

Delinquent collection

Takes care for those who default in rents. Send text, emails and negotiate when to pay.

By this time, you will have accumulated 63 units, and this will give you a good 150 dollars profit after all the expenses, leaving at least $10,000 in the monthly cash.

If you add appreciation at 2% per year, you will have gained Significant equity.

The strategy is to grow exponentially and grow your nest much faster than the traditional way.

The advantage is that as you start on a small scale, you will keep your risk smaller as well.

However, as your knowledge and experience grow so does your real estate portfolio. To fuel your portfolio and grow at lightning speed, get help from other experienced investors in your community.

How to manage several units productively

It is paramount to hire the services of a property manager(usually at a fee), but there are many advantages than disadvantages, for example, finding and managing tenants. They have already a database or clients than you as an investor.

Some of the everyday tasks they do are as follows:

  • Responding to repairs and requests regular maintenance
  • Responsible for evicting and cleaning after tenants move out of the property
  • Manage and keep records for rentals
  • Prepare income and expenditure reports annually
  • Handle your tax returns
  • Advertise and showing clients and processing applications
  • Conducting criminal and credit checks

The fees can vary depending on the complexity of their property. For example, residential or commercial properties.

  • They are conversant with landlord-tenant laws for each state.
  • They can get you a great deal and maintenance costs for you
  • They are contactable tenants 24/7.
  • In most cases, smart investors favour hiring property managers because they can free you  from some of the responsibilities to concentrate on building and growing your real estate portfolio

Diversification

Despite stocking up Money in your business for wealth creation, it is not a bad idea two diversify to protect yourself from future economic downturn like what we have experienced Corona Virus pandemic. There are many Other avenues to diversify your portfolio without leaving real estate

Many smart investors have continued to build their portfolios by making smart choices, for example, commercial mobile homes and looking at different classes from A to C to protect their investment.

-Finding deals to scale your portfolio.

There are several options to fund deals. The most common is the traditional mortgage.

Though they are slow in the process, they are beneficial for the beginner.

As you gain experience and knowledge, you move to conventional loans. They are equally slow.

For faster growth and advancement private lenders become handy

 

The B R R R R strategy

 

Additionally, smart investors favour right BRRR

The strategy that works exceptionally well and faster.

It involves Buying and fixing

Rehab to make the property look good

Rent out t worthy  and loyal tenants

Refinance your property, leverage the profits so that you can

Repeat the process again and again thereby adding more of positive income do your portfolio and increase your positive net worth(current personal capital minus liabilities)

Conclusion.

If you are looking for a strategy for creating wealth in real estate faster then there BRRRR method is the way to go.

Smart investors like you prove it as a great strategy.

My friend Daniil Kleyman has developed the BRBRA guide that explains step- by- step method to build wealth through real estate investing.

That’s why he has made a free version of Rehab Valuator available to (at this point) hundreds of thousands of real estate investors

 

 

 

 

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