The real estate market in Richmond can be a lucrative place to invest. The market is strong, and future forecasts for southside property and other local areas indicate that it should continue to trend in a very positive direction. In our last blog, we looked at some proven methods to ensure that your real estate portfolio is growing.
By way of recap, the first method was to “get in the game,” meaning to buy your first property and get the ball rolling. The second was to utilize the concept of leverage by rolling proceeds from one property into multiple other properties. Thirdly, the utilization of technology and apps helps an investor work smarter instead of harder. And finally, we covered how networking with property managers can help you find properties that become available before they are listed on the MLS. In this blog we are going to cover four more proven methods to ensure your portfolio keeps moving in the direction you want it to move.
1 – The tried and true method of cold calling
Cold calling is usually not anybody’s first choice when it comes to searching for new investment properties. It can be time consuming and feel like your efforts are slow to be rewarded. It also seems to take people out of their comfort zones. These are exactly the reasons you SHOULD be cold calling to seek out motivated sellers! Other investors aren’t doing it very often, which means that they are missing out on a lot of potential undervalued properties. Where do you begin? Make a script and pick up the phone. Feel free to tweak your script as time goes on, and know that the more you call, the more comfortable you will become with the cold calling process. Don’t spend all of your prospecting hours the same way, but do make sure to block off some time for making calls. The early bird gets the worm, and the investor who is willing to pick up the phone often gets the undervalued property.
2 – Rental properties equal cash flow
The rent payments you are collecting on a monthly basis become a steady stream of residual income. This cash flow can be used to make improvements on the rental property itself or set aside to be used to make improvements on other properties within your portfolio. Having a renter or two can also be a good way to locate future buyers. Sometimes tenants will inquire about purchasing the property they are renting from you. This opens up a lot of future possibilities for you as far as rent to own or seller financing type arrangements. It also gives you added leverage and more options on how you might continue to grow your real estate portfolio.
3 – Recognize and protect your most valuable asset
The most valuable asset in any real estate portfolio is the INVESTOR! After all, it was you who found the properties, nurtured the deals and uncovered the profits and cash flow. As an investor, it stands to reason that the better your portfolio does, the more valuable your time becomes. An investor is wise to find ways to delegate tasks that take their time and attention away from finding new investment opportunities. One proven way to do this is to hire a property management company. Aside from simply managing your properties, they can also do research, network and assist in bringing additional opportunities to the table. If you think that you could benefit from these services, don’t hesitate to contact property management Richmond VA.
4 – Know when to walk away and have the courage to do so
There aren’t very many investors who have a perfect track record when it comes to their real estate portfolio. If a certain property starts to eat up too much capital or takes up too much of your time, it is best just to cut your losses, find a way to unload the property and move on. Human nature often makes you want to hold onto a bad property just to save face or attempt to turn it around. The sooner you learn to move on, the sooner you will free up your time, energy and financial resources to find a property that generates a profit.
Be sure to watch for a future blog post where we will discuss some ways to evaluate where your portfolio stands today.
