There is a misconception around business portfolios: you can only have one if you are immensely rich. This is not correct though. Having properties all over the world or stocks in lots of successful companies does take capital, and building a portfolio takes time, and if you are smart about it, it has a tendency to grow itself. Success begets success, after all. However, if you are looking to start your own portfolio, you do not need to be a millionaire (or have a millionaire father) to make it work. It would be disingenuous to suggest that it is easy. That is not to say that it is impossible though. It takes hard work, dedication, and the vision to know which properties are good investments and which ones are a mistake. However, if you are going to start your own property empire, you have to do a lot of preparation. Buying a property, renovating it and then renting it out sounds quite simple but actually doing it is an altogether different matter. Property moguls may allow themselves to be seen enjoying a holiday in the south of France or living in an opulent building in New York, but they are not as forthcoming with regard to the 12-hour days that they work, and the immense amounts of stress they deal with. The job, after all, is not easy at all. Here is what you need to know to get started yourself:
First, you need to take a hard look at your finances. Buying a house besides your own is a massive investment and therefore a massive risk. If you think you just about have enough money to cover the projected costs of the property itself, as well as the renovation, then you should wait a while before investing. The truth of property investment is that it is like a lot of other areas of business in so far as there are always delays, problems, and unexpected expenses. Being able to subsume these costs without having to abandon the project necessitates that you have more money than you think the project will cost. Being prepared is about expecting the unexpected, or at least planning for it. For instance, if you are renovating a house and someone falls and injures themselves, not only will work stop for the day, or several days, you may be personally liable for the accident. Hiring new construction workers or decorators will not solve the problem itself. Besides, the whole incident would cost you money in lost productivity and it could slow down the entire process. If you are counting on selling a property quickly so you can cover the other costs of your business, you may find that it does not work out on time and you would be stuck in the middle with bills you cannot pay. Allowing for these sorts of things will ensure that you can respond to them dynamically and not allow them to drag you and your business down.
If you do find that you need a mortgage to cover the initial costs of your first property, you should prepare thoroughly for your interview at the bank. The lender will demand to see your projections and plans and will need to be absolutely convinced that your business is viable before they lend to you. They will also check you out too. If you have a bad credit rating, it will be exceptionally difficult to attract any kind of investment. A good tip for any prospective borrower is to register on the local electoral roll. This is something that the bank will check. If you have not registered to vote, it demonstrates that you are not settled and responsible and that you also do not give much heed to your civic responsibilities. It does not make a good impression. Since getting a mortgage is not easy, you should make sure you take care of the easy stuff.
However, once you feel comfortable that you will have enough money to over everything, you need to choose the right property to invest in. There are a lot of factors that contribute to making a property a good opportunity for a profit, and if you do not carefully consider them and choose a good one, you could find yourself with a house that offers you only a loss. If you are looking at places in a city, each property will likely appeal to a different sort of buyer. A small apartment in the thick of things will attract young professionals without families, while three or four bedroom detached houses in the suburbs are more likely to appeal to slightly older people with families who will commute into the city. Being aware of your demographic is important because you must think about whether these sorts of people are buying at the moment. If so, what sort of property would appeal to them? If all of these questions seem rather overwhelming, you may want to think about getting some advice from a company like Assetz property investment. They are experts in their field and know the property market better than it knows itself. Making smart investments is a lot easier when you have people who will help you make smart decisions. Besides, getting one property and selling it on for a profit is one thing, but if you want to build a portfolio that will be able to support you over time, you need to do it carefully and methodically. Making the right step at each stage is crucial.
However, the hard work is not over once you renovate the property and find tenants. Becoming a landlord means that you take on many more responsibilities. You have to constantly keep on top of any repairs or other maintenance that needs to be done to your building or else you could be sued. It is also important that you treat your tenants with respect and kindness. Developing a reputation for being a slumlord is not good at all and could seriously affect your ability to find people in the future. You may have wonderful properties, but if no one wants to rent them, they are not much use to you.