The real estate market in Southern Florida is always a lucrative place for investors. In our last blog, we looked at some proven methods to ensure that your real estate portfolio is headed in the right direction.
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. 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 that your portfolio keeps moving in the direction you want it to move.
1 – The tried and true method of cold calling
Cold calling is rarely a first choice when it comes to prospecting for new properties. It can be quite time consuming and often might feel like it is not an efficient use of time. It also takes people out of their comfort zones. These are exactly the reasons that you SHOULD be cold calling to seek out motivated sellers! Investors who are not cold calling are missing out on a lot of low hanging fruit. Make a script and pick up the phone. You can tweak your script as time goes on. The more you call, the more comfortable you will become with your wording. It wouldn’t be wise to spend all of your prospecting hours cold calling, but make sure to block off some time for it every week. 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
Monthly rent payments become a steady stream of residual income for a smart investor. This cash flow can be used to make improvements on the property itself or set aside to be used to make improvements on other properties in your portfolio. Having a renter can also be a good way to find a prospective buyer. Many tenants will eventually inquire about purchasing the property. This opens up a lot of possibilities for you as far as rent to own or seller financing type arrangements. It gives you added leverage and more options on how you might move your portfolio forward.
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 the most valuable asset in your portfolio, it stands to reason that the better your portfolio does, the more valuable your time becomes. A successful investor will find ways to delegate tasks that take their time and attention away from growing their portfolio. One highly effective 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.
4 – Know when to walk away and have the courage to do so
When it comes to real estate, very few investors have a flawless track record. If a certain property proves to be unprofitable or takes up too much of your time, it is best just to cut your losses and move on from it. Human nature is to hold onto the property in hopes that you can turn it around. The sooner you learn to cut your losses and move on, the sooner you will free up your time, energy and financial resources to find a better property.
Be sure to watch for a future blog post where we will discuss some ways to evaluate where your portfolio stands today.