How to Scale a Real Estate Portfolio

How to Scale a Real Estate Portfolio

If you’re brand new to real estate investing, it may be too soon to focus on how to scale a real estate portfolio. But once you get started with the first property, it won’t be long before you begin to consider how to grow your business, or how to scale a real estate portfolio.

So, how do you do it?  Start with education.  Get some sound real estate investing training, including coaching and mentoring from someone who’s done it.  You’ll save yourself tons of time, anxiety and pain if you have a mentor to guide you.

Take a look at LeAnn Riley’s Proven Profit Formula Coaching Program for online training you can complete on your own time, plus weekly group coaching with LeAnn. She has been in the real estate industry for years, as an investor, a Realtor and coach/mentor. She built and scaled a multi-million dollar 100-unit real estate portfolio.

When ready to scale, think big but start small. Begin to plan for growth, but take it step by step. If you add too many properties too quickly, you will likely run out of money, energy and time. This approach is a recipe for failure.

Planning for growth is as important as coming up with capital to finance more deals. Most investors start and scale with residential rental property. Many investors choose a single family house or townhouse first. They then graduate to a duplex or four-plex, getting their landlord feet wet with fewer tenants and less maintenance.

The important part is to quit analyzing and get started on the first property. It’s often said, ” the first property is the hardest”. Once you get going, you refine your process and things get easier.

This is the time to get your systems set up for screening tenants, getting leases signed, collecting rents, arranging for repairs and maintenance, and more. You can’t manage a growing business without these systems in place, and it’s a terrific opportunity to gain the experience and develop the skills you will need when you begin to scale your real estate portfolio. Get educated and trained in the beginning and you can build a profitable, cash-flowing passive income business very quickly. LeAnn Riley’s Proven Profit Formula Coaching Program is a great place to learn the ropes of starting and growing a real estate portfolio.

Important Pointers as You Scale Your Real Estate Portfolio

  • Carefully choose properties. Make sure you have done thorough cash flow analysis and picked an appealing location to attract the type of tenants you want. Property price, cash flow and location are key to your success, especially with the first few properties you acquire. You need to know how to optimize a property…that is where the money is made. The Proven Profit Formula Coaching Program teaches you exactly how so you can grow smarter and faster.
  • Screen tenants. Utilize a tenant screening tool that conforms to fair housing practices and attracts the best tenants for your property. Consider whether you want to attract seniors, millennials, families with children, individuals with pets, etc. and build that into your purchase decisions and screening tools. Conduct background checks and request several references, including the last landlord if possible. There are tons more tips to learn about choosing the right tenants.

“LeAnn is knowledgeable, trustworthy, and a diligent real estate agent.

She has helped us build our rental portfolio and has given us helpful advice and mentorship every step of the way.

We love working with her and recommend her skills to others looking to build their portfolios.”

– RENAE & DEAN

  • Reinvest proceeds into the business. Income from your rental properties should go right back into the business. Maintain separate accounts for your real estate investing business. You never know when you will need to make an emergency repair or be hit with a vacancy, and you’ll need funds to get you through. As you continue to grow, you will also build equity that could be tapped for the next acquisition.
  • Build a team of reliable contractors. Even if you have strong carpentry or handyperson abilities, it’s wise to make connections with contractors who are skilled, reliable and available near your property’s location. This is especially true if your strategy is to fix and flip a property. The work needs to be done quickly so you can put the unit(s) on the market. Same is true if you acquire a property that needs updating/improvements before you can rent it out. Having a team of carpenters, painters, sheetrock and flooring installers, etc. means you can show and rent the unit more quickly. Time is money in the rental property business and the point is to get the cash flowing.
  • Explore all forms of funding. As you grow your business, you may need new sources of capital. If possible, develop relationships with lenders who appreciate new borrowing customers who are organized, have integrity and follow through on their commitments. It’s advisable to create an electronic business plan that can be customized and delivered to lenders in short order. If your portfolio includes property with more than four rental units, you may need to seek commercial funding. Also, don’t forget about 1031 Exchanges, where you “swap” one property and roll over the tax-deferred gain into another like-kind property. The tax advantage allows you to utilize your sale proceeds including the taxes you didn’t have to pay in capital gains to scale a portfolio faster.
  • Optimize revenue on each property. One way to grow the income from your properties is to make sure you are optimizing revenue from each building. Maybe the rent amount is below comparable market rates and can be increased. Perhaps some or all utilities could be paid by the tenants. Take a close look at the amount you’re spending for maintenance, insurance, lawn and snow; there could be savings to be had.
  • Keep good records. As with operating any business, you will want to keep accurate records of your expenditures and receipts both for tax purposes and budgeting for future acquisitions. As you learn how to scale a real estate investing portfolio, tracking your past spending habits can be very helpful when it comes to deciding it’s time to buy the next property, and how much you need to fix it up.
  • Consider hiring a property management company. Naturally, if you continue to acquire properties there’s more work to do and lots more to manage.  Some investors work with a spouse or family partner to manage multiple units.  Others decide it’s easier to hire a property management company that is accustomed to handling all aspects of managing and maintaining rental units. Purchasing real estate properties out of state is common and easier with the right property management team in place.
  • Connect with other investors to learn how to scale a real estate portfolio. You may choose to join a real estate investing club or participate in a coaching call with other like-minded investors.  LeAnn’s Proven Profit Formula Coaching Program includes weekly group coaching with LeAnn.  It’s an opportunity to listen and learn from investors who have continued to build their businesses and add units to their portfolios.  You can share the triumphs and the horror stories: both are sources of learning and moving forward.

There’s lots more to learn about how to scale a real estate portfolio.  Get educated, then get started in real estate investing, and you can soon join others who are making significant income from their growing portfolios.

If You Would Like to Learn How to Scale a Real Estate Portfolio With LeAnn Riley Contact Us by Booking a Free Strategy Session Now
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