The real estate industry has produced more millionaires than other industries combined. Building a real estate empire has its benefits ranging from improved cash flow, tax relief, leverage, property appreciation and there has been no better time to build that property empire than now.
With little or no money, building the right rental property empire is possible. However, to ensure good returns, you’ll need to employ the right approach and commitment.
You’ve gone this far in reading. So, are you ready to build real estate and yield good returns? We bet that you are! Below, we’ll be putting forward that guide that employs strategies needed in real estate empire building, so make sure you keep reading.
Building a rental property empire is very lucrative, but the bottleneck lies with starting. Starting from scratch is sometimes a harrowing experience, as most investors get stuck on their first investment property. While the property might be successful and yielding positive cash flow, they decide to play it safe by having just one property. It’s impossible to build an empire with only one rental property, and I’m sure you don’t want that. As we advance, we’ll be talking about five steps essential in building that real estate empire of your dreams. They are:
For Building a Rental Property Empire – Short Term Shop, educating yourself is the first step to take. Hey! Don’t beat yourself up so much; you’re doing that right now.
We’re in the jet age. Anything you want to get in the world, ranging from books, journals, webinars concerned with real estate empire building, are online, so you have no excuse not to educate yourself. We’re not saying you should know everything; that’s impossible. But if you want to create that empire, you have to know a whole lot ranging from real estate and the real estate market.
Alternatively, you can seek opinions from experts concerning the entire real estate empire building process. As a result, you’ll understand the market, and when push comes to shove, avoid pitfalls.
The second step to take is setting clear goals. As an intending investor, what do you aim to achieve by building a real estate empire? Do you intend building that empire to create that extra income source? Or are you in for life? Giving answers to these questions would help you set your goals efficiently.
Are you looking for ways on how to start a rental property business or investment? Seeking ways to finance your empire building investment is crucial. Before making that final decision on the finance stream, make sure you weigh your different options before settling on the one that’s the perfect fit for you. Having a clear insight into your budget and your means to get financing, whether it be from getting equity loans, engaging in real estate partnerships, or getting help from a mortgage broker, finding the right finance source is essential.
When you’re done with the first three steps, it is now time for you to get your first property. That being said, your first investment property should be the foundation of your real estate empire. Engaging the services of a real estate agent, broker, or consultant not only helps you get the right property but offers you guidance throughout the investment process. It’s best if you can have a team of experts that you can trust and rely on because it makes the process of building an empire so much easier.
Once your property starts yielding positive cash flow, the fifth step involves buying more investment property, thereby diversifying your real estate portfolio.
What’s a portfolio? And what does it take to build one? We’ll examine that in the sub topic below.
How do you build your rental property portfolio? A lot of real estate investors do not have the necessary knowledge or skills to develop their portfolios. Luckily for you, you’ve got that covered in the first steps of your investment journey above.
Starting a portfolio from scratch requires you to have a rental property business plan. If you’ve got this covered, obtaining your first property would be a much easier decision to make.
If you have a rental strategy in place, you should focus on a property that is profitable, your first property should therefore be:
- A single-family apartment
- Located in wanted areas
- A low-cost property
- A low maintenance property
Consequently, once the cash starts flowing in, acquire other investment properties as this is crucial in creating your business empire.
The sole aim of investing is profit. When building your real estate empire, you’ll want to ensure that your properties yield profits, thereby increasing your returns on investment. What makes a property profitable? They include:
- Having a great location
- Presence of the right appliances and furniture
- Having well-groomed tenants
While this isn’t an exhaustive list, the success of your empire depends on the first property being profitable.
While there are lots of different real estate investment strategies for building that perfect real estate empire, such as the buy-and-hold method, flipping property and other rental strategies, picking your desired plan must be based on your goals and resources. For example, the buy and hold method requires a lot of patience from the investor, and if you’re looking for something a little bit more fast-paced, picking another investment strategy is advised.
On the other hand, one of the most efficient investment strategies is using the BRRRR (Buy Rehab Rent Refinance Repeat) method. Using this method, you buy an investment property with little to no value and rehab it. This means optimizing the property so you can rent it out to generate income. After making profits from rental income, you refinance the property to buy a second property. A repeat of this method makes for expansion in your real estate portfolio thereby building your empire.
While it’s possible to use little to no money to build a real estate empire, you need a sound financing plan. You have a lot of financial options ranging from seeking partnerships to collecting loans, borrowing money and much more. If you’re not looking to ply this route, you can render services that entails giving advice to people who are looking to create or expand their existing real estate investment portfolios. When that’s done, you can make down payments from your proceeds on the property of your choosing.
With so many rental property success stories, it’s evident why the real estate industry is a goldmine.