Real estate investments require you to think about your long term and your short term financial goals. If you don’t have established goals and a clear strategy for achieving those goals, you’re not going to know how to look for the right opportunities and where you should buy your next rental home.
We have been helping investors manage their assets in the Everett rental market for years, and we have found that real wealth is created when you grow your investment portfolio. It doesn’t matter if you have one property or 10; consistently adding assets will give you an opportunity to earn more.
You have to do it correctly.
Real Estate Investing: Grow Your Portfolio with Acquisitions
Investors want to know when they should buy, and you should actually be prepared to buy any time you find the right opportunity. The market’s strength will play into how you structure and negotiate your deal, but it’s always a good time to invest in Everett real estate.
We recommend you buy whenever you have the opportunity and when you find a property that meets all of your investment criteria. When you or one of your partners finds a property that meets your criteria and complements your existing portfolio, but it. Leverage your buying power to acquire as many properties as you can.
Remember You’re Running a Business
You have to buy the right properties, and the right properties will make financial sense.
One mistake that a lot of investors typically make when they’re growing their portfolio is to buy anything and everything. That’s not a good strategy. You want to find an investment that will bring in some great short term cash and long term returns. You want a home that tenants will be interested in renting.
Look at every potential acquisition from the standpoint of a potential renter. Make sure you’ll be able to charge the amount of rent you need to ensure the investment makes sense. Consider your expenses; will a lot of work be needed?
It’s about quality, not quantity when you’re building your portfolio. Keep the emotions out of it, and focus on smart business decisions. Don’t buy high priced homes or properties that need a lot of work.
Real Estate Investing: Grow with a 1031 Exchange
A great way to leverage the investment properties you already have is with a 1031 exchange. Under this program, you can sell one property and then defer the capital gains taxes on it by investing the proceeds into another property (or several properties) that are similar. The word similar in this case only means that it has to be another income producing property.
This is a great way to unload an investment that may not be performing the way you want it to. Or, you can increase the size and strength of your portfolio by selling one single-family home, for example, and buying a couple of duplexes. There are a lot of options.
Hold Your Everett Investment Properties
The best strategy for earning as much as you can on your Everett real estate investments is to hold onto them for as long as possible. There’s not a lot of money to be made in buying and flipping houses anymore. We recommend you settle in for the long game. Buy some great, high-quality properties with excellent earning potential and hold onto them. You’ll earn more cash flow and you’ll increase the returns you earn in the long term.
Our team is pretty passionate about real estate and Everett property management, so if you’d like to talk about your personal real estate portfolio and how we can help, please contact us at Real Estate Gladiators.