If you’re starting out as a real estate investor, it’s always important to build an investment portfolio. After all, you will need to set the right conditions for future acquisitions.
As an investor, I am always focused on growing my portfolio. This is because I understand how important it is to nurture one. If you have had a lot of successful investments before, you are in the right position for more opportunities.
Still, you will have to understand that building an impressive investment takes a lot of work. If you’re a first-time investor, the challenge becomes even more daunting as you will have to build your network from scratch.
If you would ask me, to be a successful real estate investor involves a lot of perseverance. This means that you will need to learn a lot before you can truly make it big. Once you have acquired the knowledge you need, it’s only a matter of finding an investment option that allows you to build a real estate investment portfolio without much stress and hassle.
Invest in single-family?
Starting out can be difficult for a first-time investor. Often, you will be tempted to buy 20 different single-family homes. However, once you have acquired these properties, you will need to process them individually. In other words, you will have to conduct appraisals and inspections for 20 different properties. You will also need to hire a property manager for each property.
Finally, you will have to take out 20 different loans, which makes for a ton of paperwork for you to handle.
Despite being time-consuming and burdensome, purchasing single-family homes is still a good way to start building your investment portfolio. However, if you’re focusing more on cash flow, you should consider investing in multifamily properties instead.
The quickest way
For me, the quickest way to build your investment portfolio is to purchase and manage multifamily properties or, in other words, apartment complexes. While buying 20 single-family homes means you have to manage each asset, buying a 20-unit multifamily property provides greater benefits since you only manage the property as a single asset. This means you will only need one loan and one property manager. You will also be handling the appraisal and inspection of all 20 units in one sweep.
It’s for this reason that I think multifamily properties are a great way to grow your investments and build a portfolio. You only need to make sure you’re going the right way in terms of investing in this sector.
A good strategy is to always open yourself up to new knowledge about multifamily investing. You can talk to fellow investors, multifamily syndicators, and even real estate gurus to gain extra knowledge on how to obtain a good cash flow.
Other than that, you also need to research emerging markets and build an investor team that’s highly proficient. Once you have these in your arsenal, you can build an impressive investment portfolio for greater wealth.