Growing your real estate investment portfolio won’t just happen by chance: you need strategies that will work for the long term. If you want a lucrative Sarasota and Manatee real estate investment portfolio, that will require making wise choices along the way.
If you plan carefully from the beginning of your real estate investment career, you will succeed in having a robust real estate portfolio. Over time—with the aid of an expert property manager in Sarasota—you will build your wealth. First, let’s look at some real estate investment strategies when choosing to invest in Sarasota and Manatee counties.
1. Invest with a Solid Foundation
Trust is an essential criterion in any business, and it’s especially so when building your investment portfolio. You want to be careful when choosing which properties to invest in: this is where you are going to be earning your money.
You want investment properties that are going to yield a good return on your investment, which means they need to be in a good location and structurally stable. Part of this comes in the form of a thorough home inspection before your purchase, which can shelter you from an unexpected money sink. This can often be more difficult when choosing to fix and flip a foreclosure into a rental, so it's best to start with a property that's already undergone renovations (like a turnkey property) or one that doesn't require intense restructuring.
When deciding whom you buy your investment properties from, you may want to jump at some of the first opportunities you see. It’s especially tempting when you see the bright yellow lawn sign on your way to Starbucks advertising “Invest Now!” Yet, stop and think twice: if the investment “opportunities” were so great, would they be advertising them to the world? Usually, those fantastic investment opportunities are more akin to hidden gems that require some digging to find.
So, why are people posting a sign about investment opportunities? Some people may be trying to get out from underneath a mortgage because they’re in deep water financially. If they owe a lot on the house, they could be asking more than it’s value. Turning to a reliable source of investing wisdom—like an investment group or a trusted property manager in Sarasota—can help you dodge a lemon.
2. Work with Investment Groups Who Have a Proven Track Record
One excellent way to grow as an investor is to work with a real estate investment group. So, just what is an investment group—and what do they have to offer? A Real Estate Investment Group (REIG) is a group of investors that unite around the common interest of real estate investments. Some activities and benefits of being involved with an REIG include:
- Investment education and best practices
- Learning techniques for discovering available properties
- Shared tips that will help you maximize the market and its trends
- Readily available legal and financial information
- Guest speakers and educational workshops
- Networking opportunities with others who have similar interests
- Investing support from other investors.
You should check out the REIG you're interested in before joining them, though. Not all groups are created equal—and you want to ensure they are legitimate. If they have a solid track record, then you know you’re on the right path to connecting with a valuable asset for your business.
However, if the real estate investment group you’re considering seems to be all about selling products or services, then that’s a sign they are not worth your time. Keep in mind, you should only have to pay between $50 and $200 for any membership fees annually.
3. Consider Turnkey Properties
Securing a turnkey property is worth considering as you expand your real estate portfolio. A turnkey property is one that is move-in ready from day one. It’s an excellent option for people who don’t want to spend much time fixing, repairing, or updating a home.
These properties will be ready to start renting out as soon as you sign the paperwork. In fact, some of them have tenants already residing in the homes—so you can start collecting rent right away.
The costs for a turnkey property may be a bit higher initially, but if you consider the ease and speed by which you can begin bringing in money, then it may be worth it in the end. You also have the advantage of starting out with a secure investment.
4. Secure a Reputable Property Management Company
An expert property management company in Sarasota County is an excellent asset for your investment portfolio. A Sarasota and Manatee property management company will ensure that you stay on the right pathway to grow your business. Without their oversight, it’s easy to become overwhelmed.
What will a property management company do for you?
- They will provide you with the tools to be successful in building your investment portfolio.
- An expert property manager will give you the in-depth perspective you need for the Sarasota and Manatee area.
- They have the inside track on the market—thereby being able to provide you with the analysis you need to make the best purchasing decisions.
Of course, a property management company takes on the many responsibilities and duties that you normally would do. This gives you added time to pursue new investment opportunities—which is a great way to grow your investment portfolio.
- Maintenance calls
- Collecting the rent
- Screening tenants
- Marketing your rental properties.
Consider your Sarasota property manager as a partner in your expanding business.
When you find a property that you think may be profitable—but you’re just not sure—an expert property manager in Sarasota can give you some feedback about it. Property managers are experts at running the rental analysis you need to appropriately price your investment to the market. As you begin investing in more properties, you can't afford to waste time experimenting with pricing to find the right rental rate: you need answers backed by hard research.
This is exactly why Real Property Management of Sarasota & Manatee offers our investor-partners access to our powerful rental analysis tools! Whether you already own your investment properties, or are eyeing another purchase to expand your portfolio, start on the right foundation with a FREE rental analysis!