How to manage and grow a property portfolio
For many investors and developers, keeping a property portfolio can be a challenge, and growing your portfolio can sometimes seem nigh on impossible. Here are 5 tips to consider that could help you along your way.
Start with one
There are a number of things to evaluate before attempting to build up a property portfolio. Start with one, and get that right before adding to it. Hindsight is useful — think about the risk before you end up managing multiple properties you can't sustain or develop.
Reinvest your profit
By pumping your profits back into developments, you'll drive the quality of your portfolio way up. The next step is to reinvest money into expanding your portfolio, as this can lead to very positive results. The main challenge here is patience, as it can take time to build these funds up — and you need to keep an eye on your cashflow and working capital.
Do your research and buy at the right time
When redeveloping a property, you should ensure you do all of your research early so you can avoid the small problems. Make sure you research the property area. For instance, if you specialise in multiple-occupancy development, know that you can fill your house - you’d never develop a house intended for students in a town with no university!
It’s simple, but take your time to understand your market before you buy or do any work – don’t buy a property just because you like the way it looks, and ensure the developments you make suit its potential tenants or buyers. Finally, get your timing right. Don’t rush into a project you have any reservations about.