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How to Build an Effective Property Investment Portfolio in Less Time

How to Build an Effective Property Investment Portfolio in Less Time

When people envision their investment portfolio, they want to build a solid, profitable one overnight. Investors want a portfolio they will see big returns on quickly and they don’t want to see many losses. How can this be done? How can you build a successful property investment portfolio quickly? Let’s take a look:

While increasing the effectiveness and profitability of your property investment portfolio, you can purchase properties, add to those properties’ value and purchase more. This could take time and, as your investment portfolio will grow, it won’t be very fast. If you want to build a solid property investment portfolio quickly, the following two strategies should be considered.

Lease Option

A Lease Option strategy gives you the advantage of profiting quickly with little to no money down. You simply offer a property owner a lease option where you promise to purchase the property after a pre-determined 5-10-year period at regular market value. enables us to begin earning a profit in a very short time with very little money down. You lease the property, using it as a serviced accommodation or HMO and pay the lease payments until you assume the mortgage and take over those payments.

Why is this a good strategy? You get immediate cash flow with few drawbacks and no maintenance fees on the property.

Rent to Rent

The Rent to Rent method involves just that, letting a property for a certain price, then letting it to someone else for more money. Finding a landlord who will let you rent their property for at least 5 years is key to this strategy’s effectiveness. Most landlords will accept this agreement as they are guaranteed rent for 5 years, HMO costs are shared and an annual redecoration fee is usually included in the contract.

With very little startup costs and instant cashflow, this is an easy way to grow your property investment portfolio. Although you don’t own the property and you don’t benefit from any capital appreciation, you also don’t lose money if the property depreciates.

While either of these two methods will grow your property investment portfolio quickly, care should be taken that you don’t end up spending more money than you are profiting and you should let an expert find a property that is right for you and that will hold its value.

To learn more about how you can grow your property investment portfolio quickly with very little money down, contact LPP estates today.

 

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