Start your own property portfolio

Article By Private Property Reporter 23 Feb 2011
Real estate is one of the most exciting and dynamic businesses to be involved in, and historically this is the best place to invest some of your hard earned cash. Many investors buy properties and bank them, and then sell the properties off once they have either served their purpose or have gained value.

At times the investor sells off a portion of the portfolio or a whole portfolio, but timing is the key factor. Most successful property owners, once having built a substantial portfolio prefer to hang on to their assets, and are loath to selling, as the buildings and properties bring in rental income.

If you want to start your own property portfolio, it would be advisable to bank your properties for a couple of years, and then sell them at a profit. A five to seven year period is often a good time.

Real estate is often perceived to be a cutthroat business and not for the faint of heart, but the adrenalin rush when a major deal comes together can beat no other! Properties to buy / properties for sale are always in big demand, and those that are good value for money – well there simply are not enough of them.

Many real estate developers and investors buy run down shopping centres, commercial buildings and warehousing for the sole purpose of fixing them up and selling them off at a profit. These are some of the most sought-after real estate investments. Although many prefer to hold onto them.

Residential property is also big business if you are looking to start your own property portfolio. There are many areas where you can buy houses in a poor condition at an excellent price, renovate and repair them and then rent them out to tenants. This is lucrative, but can sometimes prove to be tricky if you are unfortunate to get poor tenants, but on the other hand, if the tenants are reliable and good payers, this can be a wonderful way to earn extra income.

Start your own property portfolio bit by bit, and glean information from the experts who have walked the path before you. A good starting point is to put an excellent business plan together well before you decide to embark on this project, as you would do with any other business.

Buying properties at this point in time is a clever move if you have spare money to invest or if you want to get into the real estate business. Some property owners who are willing sellers are finding it tough to sell, as the recession has taken its toll over the past couple of years. This is when you will find an excellent buy and good value for your money.

With the real estate market climbing slowly back into recovery mode, strike while the iron is hot.

Buying low and selling high should be the mantra if you would like to start your own property portfolio.

Investors are spoilt for choice and have never been in a stronger position with such a variety of real estate available.

Borrowing money from banks and institutions is generally quite tough, but there are other ways of seeking the advice and borrowing money when buying and investing in real estate.

Equity companies are pro-active, and take small start-up businesses under their wings whilst growing the business, offering a hands-on approach and assisting with the management and the businesses that they support. These private equity companies are delighted to hear from you especially if your property investment business has potential.

Having the backing of a professional team to assist you along the way when starting up your own property portfolio is also important: these should include an attorney knowledgeable in property law, a really expert architectural and building team, someone who is reliable and honest to assist in renting out your property, and a reputable agent or broker to handle the sale of your property should the need arise.

The above pointers should help guide you in the right direction on how to start your own property portfolio.