If you are a property investor, you should always be looking for ways to improve your property portfolio. Sometimes, you’ll need to make some timely changes to ensure you’re making the most money you can with the assets you have. Yet, knowing when to make these changes and what those changes actually should be isn’t always easy, especially if you are new to investing. With that in mind, read on to find out what you should do if you want to improve your property portfolio.
One of the best things you can do when you want to improve your property portfolio is to diversify it. This means having more than one property to begin with, but it also means having a variety of different properties, if you can. For example, you might have a range of different-sized domestic properties in different locations. Perhaps you could choose to add commercial property to your portfolio too.
The point of this is that if one area of the housing sector starts to grow, you’ll ideally have a property that matches the demand. If one starts to flag, the others in your portfolio will make up for the shortfall. Having more than one property also means that periods when you are not renting out one property aren’t so difficult in terms of your finances.
If you want to be able to diversify your portfolio or you want to be in a position to buy a property when you see it and not miss out, you’ll need to have your funding in place right from the start. This means investigating good lenders and knowing who to speak to when you need your next injection of cash.
Hard money lending is a good idea at this point. This kind of lending is short-term, and it’s a good way for investors to buy property they then flip and sell on or when they need to sell a property to buy another, only the initial sale hasn’t gone through yet. In order not to lose the ideal property you want for your portfolio, knowing where to turn for hard money lending can make a big difference.
Rent or Sell?
If you want to improve your portfolio, it won’t always mean adding to it. It might mean you choose to see off less profitable properties and focus on other ones. You’ll need to think carefully about whether renting out a property or selling it is going to give you the best profit, and you can use that information when you come to buy another.
As we mentioned above, selling one property to buy another may be necessary, but it’s time-consuming, which is why hard money lending is a good idea. However, no matter what option you choose, you need to make sure you’re not missing out on any potential income. Consider all the pros and cons before making your choice. In that way, you stand the best chance of doing well as a property investor.