Portfolios are important in almost any industry you can think of. It’s a showcase of the success (and sometimes failures) that you’ve had during your time working in a certain industry. It’s important to build a portfolio if you want to pitch ideas to investors or borrow money from banks and private firms in order to increase your own profits. After all, an investor needs to know the best places to put their money in order to see it grow, and wealthy people are always looking for an opportunity to increase their own funds.
However, it can be difficult trying to build up a real estate portfolio. This is because, unlike other forms of investment, real estate is extremely expensive. Thankfully, there are still some ways to build up a property portfolio without having to spend ludicrous amounts of money on your first property, and here are a few tips to help you do just that.
Get out there and start working
As soon as you’ve finished reading this article, make sure you get out there and start working. Time spent procrastinating or doing anything that isn’t remotely related to property investment is time wasted that could improve your portfolio. Whether it’s looking for opportunities on the internet or in local real estate magazines, speaking to successful property developers or even researching current property trends, do something to help you grow your knowledge instead of sitting there and doing something else. Yes, this does mean sacrificing free time or time with your family, but how else are you going to make it big if you don’t put in the time?
Looking for opportunities
If you’re starting with a low amount of funds, then you need to look for opportunities. For instance, you can utilise occupied renovation strategies to upgrade currently-occupied properties that you own and then rent them out through some kind of third-party service like an estate agent. Even if you’re just renting out a single room or a part of your house, it’s better than nothing and you can start using that money to build up savings for further opportunities. You could also invest in new homes and investments that are currently being built, and there are even crowdfunded property developments popping up around the world as well.
Building capital slowly
Remember that if you’re starting from scratch with very little money, you need to be extremely careful with building up your capital. One mistake can cost you all of your funds and you’ll have to focus on damage control in order to minimise your losses. Investing in property is expensive and slow, so don’t go into it without unrealistic expectations, such as making thousands in the first month. With any capital you get, always ensure that it’s going to a good cause. Use low-risk investments, even if the profit gained from them is small, and don’t buy into those “guaranteed” investments that promise a return on your money because, chances are, they’re just scams and the only one profiting off it will be the project manager.