A step-by-step guide to build a portfolio of cash flowing deals in real estate

There are many ways to develop a portfolio capable of handling cash flowing deals and real estate is considered among top 3 of them across the globe. Before we start digging deeper, remember that this isn’t a quick act. Instead, it takes years to build such a portfolio. To start with, when you’ve a goal to attain this type of portfolio, you simply can’t afford to buy any property. You can find a huge range of properties out there that are awful investments and may end up costing you more than what you make. Here’s a step-by-step guide to build a wealthy portfolio.

  • The first step: In this journey, buying your first property is the most crucial step you’ll ever take when developing your portfolio. So, take your time and act wisely. It may not bring you a fortune but will act as a learning curve for you. Ideally, you should look for a property with scope for improvement and in a centralized area.
  • Leverage the property: Now, when you own at least one property, leverage this equity to purchase more properties. Another benefit of this is that you don’t have to touch your own cash for buying property. The deposit will be paid from the equities of the properties you already own.
  • Develop a steady cash flow: Not developing a steady cash flow in each of your investments may limit your affordability. Develop a positive cash flow in every property you buy and that’ll help you grow your portfolio.
  • Increase the worth of your properties: According to many investors, either you can increase the worth of your properties or you can develop your cash flow. But, you can do both i.e. increase the rental income as well as the worth of your properties by performing some renovations. When you add value to your properties, your speed of buying properties increases automatically.
  • Scan the market: To make your portfolio wealthier, you need to have some processes to scan the market for profitable deals. Take help of online tools that let you identify profitable properties according to your investment criteria.
  • Manage your portfolio on your own: Since it’s your portfolio, you’ve to take optimum care of it. Keep accurate track of the incoming and outgoing financials of your property deals. If required, consult with real estate agents about how you can increase value or rental income.
  • Get rid of bad investments: You may have made a bad investment but that doesn’t mean you would be keeping that property until it gives you a profitable return. Instead, get rid of it and invest the money into a fresh one.calculator-calculation-insurance-finance-53621-large
  • Combine high growth with steady cash flow: In case you have steady cash flow without any capital growth, you won’t have any equity to invest. Similarly, if you’ve capital growth without steady cash flow, then at a certain point of time it might become impossible for you to afford service of your loans. Ideally, your portfolio should be a perfect merger of high growth and steady cash flow.  
  • Chalk out an investment strategy: You can find many investors who simply buy properties hoping to make profit. This might work for a couple of properties, but if you want to build a wealthier portfolio, chalk out an investment strategy that’ll help you develop a list of things you want in your properties. Then you can narrow down your market and find out the properties according to your preference and strategy.

Finally, think and act smart, invest wisely and keep patience. As said earlier, it is not an overnight journey. Give the process the time it needs and it’ll reward you for sure.

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Estefania Castaneda
Estefania Castaneda
17:24 04 Sep 21
Extremely pleasant, attentive to all my needs always. It was a pleasure renting an apartment from Ken.
Vichai Soysouvanh
Vichai Soysouvanh
14:17 03 Sep 21
Can't say enough about Ken and his team. This was the most seamless sale I made. I didn't have to deal with all the... nonsense that comes with selling your home. They bought my house as is, I didn't have to declutter and pay a broker commission. All in all great experience, will do business again.read more
Niki Keser
Niki Keser
17:46 06 Aug 21
I had a wonderful experience renting one of their properties for 7 months. The apartment was beautifully remodeled and... Ken and his team were always responsive to any needs. I would recommend to anyone looking to sell or rent.read more
YASMINA VASQUEZ
YASMINA VASQUEZ
15:13 02 Aug 21
Ken and his team were professionals ,they promised and they delivered or anything
Alfredo Garcia
Alfredo Garcia
03:20 17 Jun 21
Selling my property too Ken was the best thing I did. Although I was skeptical at first I soon found out how... professional he was. Even though my closing contract was not standard because of the pendemic situation. He followed through on time with all the contract terms as promised. Thank you Ken for your professionalism.Alfredo Gread more
Vishrut Patel
Vishrut Patel
23:27 19 May 21
Ken was referred to us by someone who had sold their home thru Ken last year. From the first meeting to the last... transaction, Ken and his team were professional, efficient, easy to work with, and above all.... caring. Each seller's situation is different, and Ken truly understands that. We were treated with respect each time.Since we were in a time crunch situation, selling our home with a cash offer from Ken was the best decision we could have made. We were perfectly okay with getting slightly less money for our home as compared to selling it via an agent. But if you consider the money saved on agent commissions (both buyers and sellers), closing costs, repair costs, attorney fees, and most important of all... time and headache, you can't beat the option to sell your home with a guaranteed cash offer from a reputable buyer like Ken.My wife and I were very pleased with our experience with Ken. If you are in the market to sell your home fast for a cash offer, I highly recommend giving Ken a call!Best of luck!Vishread more
Christopher Martino
Christopher Martino
14:19 10 Mar 21
Ken and his team were great. They were easy to work with, professional, and responsive. If you are thinking of selling... your home they offer a super easy process.read more
Chelsea Grant
Chelsea Grant
15:36 03 Jan 21
I am a travel nurse and stayed in a town home for 3 months... It was exactly as described and any issue that came about... was handled within a few hours - I would definitely recommend and I would definitely stay again!read more
Aaron Zachko
Aaron Zachko
12:41 14 Aug 20
Amazing experience! Ken was upfront, quick and got the deal done in no time. Having done a number of real estate... transactions this was by far the easiest and smoothest. I would unconditionally recommend him to anyone looking for an easy, quick and fair transaction.read more
Joseph Tricarico
Joseph Tricarico
19:10 26 Mar 20
Ken is a very professional individual from start to finish. As promised, he gave me a fair deal on my one of my... properties that was in rough shape. He was knowledgeable and responsive to my requests and as promised we didn't need to waste time with inspections and appraisals and we closed quickly. He made it painless as possible by having his crew handle the clean up. This was truly a quick and easy process but a professional individual. Thanks Ken!read more
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