Once a property investor has built up a small property portfolio, whether this is one or a small handful of properties, it may be possible to extend financing to expand that portfolio. Portfolio expansion not only increases the profit potential for an investor, but it enables them to spread risk through a more diversified property portfolio. PDF Estates is run by established and experienced landlords. We have
experience in analysing portfolios, spreading risk across multiple markets, and continuing to invest in new property as a means of building up a property portfolio.
Investing in real estate has plenty of potential for profit, but it can take time and resources to build a property portfolio. While many investors spend the time researching, buying, and negotiating their first property, they find they have less time to conduct the same research for their second and subsequent properties.
This is where PDF Estates can assist – in building a property portfolio that consists of multiple, diverse properties and property types. We are experienced landlords; we can work with your requirements to find suitable homes and properties. We can also negotiate the best possible deal, and we can even source and manage tenants for all of your properties.
The Next Stage In Building A Property Portfolio
A lot of investors are happy with a single property, whether they have a single tenant unit or multiple units in a single property. This can bring in a decent second income, and using a company to manage tenants and rental means that it doesn’t consume too much time either.
Before buying any property, whether it is your first or your tenth building, there are factors you should first consider. Determine whether you want capital gains or regular rental yield. Ascertain the type of tenant you want to rent to. You should also set a budget for your purchase, and don’t forget to include any extra prices and fees. For example, you are likely to need some money to decorate if not renovate the property. You should also consider the reasons for wanting to expand your portfolio.
Property Portfolio Financing
Expanding a property portfolio means buying a second or subsequent property. By the point a landlord reaches this stage in the investment cycle, it means that they have reached positive finance, or can at least show how they will achieve this. Equity may be available in your first property, or even your own property, and this could be released to make the purchase. Buy-to-let mortgages are also available, as long as you can show property details, financial requirements, and forecasted rental yields, and have a good credit history. However, when you fund your next purchase, you do need to bear in mind that real estate investment carries risk, just like any form of investment.
There are a number of reasons for investors to build a property portfolio. The primary reason is to increase profit potential. However, savvy investors also understand the important of risk mitigation and portfolio diversification.
A diversified property portfolio spreads risk. If you suffer tenant void on a single property, you have other tenants within other properties to pick up the financial and rental slack. While a lot of landlords specialise in certain areas or particular property types, you can use your portfolio expansion as a means of investing in different types of property too. Alternatively, rather than renting just to students, you can purchase additional property that will be targeted at working professionals, families, retirees, or young couples.
You can also add real estate to an existing investment portfolio that contains stocks and shares, securities, and other types of investment. If the indexes take a major hit, your real estate can carry the burden and ensure that you still have a profitable investment portfolio.
Buying New Property
PDF Estates are experienced property buyers. Provide us with details of the type of property that you want to use to expand your real estate property portfolio. We will source properties, research areas and target demographics, and we will even help you source tenants to move in, so that you can start earning rental income as soon as the property has been purchased.
Tell us the quality or condition of property that you want to invest in. While some landlords and investors are happy to refurbish and renovate properties before letting them out, others prefer property that is basically ready to go. Refurbishing a property not only means more investment but it means that you will have to wait longer before you can enjoy rental returns. However, property that needs work is usually available for less money, and there should also be less competition when it comes to buying.
We can also search for particular types of property, in specific areas, that will appeal to certain types of tenant. Are you looking for the 100% occupancy rates that student accommodation tends to offer? Would you like the higher rental yields that professional tenants offer? Let us know and, at PDF Estates, we will endeavour to find the ideal tenants for your property portfolio expansion.
Why Build A Property Portfolio?
Many people decide that they want to invest in property, and buy somewhere that they can do up, sell on, or rent out. It is only after this initial investment that they decide to invest in additional homes or commercial premises. Most investors build a property portfolio because they see decent returns on their first investment, but you may want to expand your portfolio to spread risk or to diversify your portfolio while increasing potential returns and yields.
PDF Estates – Property Portfolio Managers
PDF Estates is run by established and experienced landlords. We understand the requirements of landlords, and we can help identify ideal properties for expanding a portfolio. We can also help you source tenants, manage tenant payments, and deal with property disputes. Our full management service includes features such as the completion of regular safety checks and dealing with any unexpected problems or communication.