What is a property portfolio?
A property portfolio is a collection of properties owned by an individual, group or company for the purpose of generating income. This can include residential, commercial and industrial properties that are rented out to tenants. Income can also be generated by holding on to the properties for a number of years so that they can rise in value, allowing you to sell them for a profit.
A well-managed property portfolio should provide a steady and reliable income stream over the long-term, with the aim of increasing wealth. It might even enable you to retire early.
To help minimise risk and increase your chances of success, it’s sensible to diversify your property portfolio by having different property types in different locations.
How To Start A Real Estate Portfolio
For real estate investors, understanding how to start a real estate portfolio, as well as why it’s important, is vital to your success. A real estate portfolio will not only serve as your resume of work but your marketing arsenal to finding and acquiring funding for future deals.
Simply put, what do you want to achieve from your investment assets? Because different investments perform differently at any point in time, investors need to understand their end goal before choosing assets. Although an entire portfolio does not decline because of one investment, the combination, including risk factors, will ultimately impact your bottom line.