The real estate market in Walnut Creek is typically a lucrative place to invest. Future forecasts are coming in strong. In a recent blog post, we looked at some proven methods to ensure that your real estate portfolio is headed in the right direction.
To review, the first method was to “get in the game,” meaning to buy your first property and get the ball rolling. The second strategy was to utilize the concept of leverage by rolling proceeds from one property into one or more additional properties. Thirdly, the utilization of the latest technology and apps helps an investor to work smarter instead of harder. Finally, we covered how networking with property managers can help you find properties that become available before they are listed on the MLS.
In this blog we are going to discuss four additional methods that can help ensure your portfolio is successful.
1 – The tried and true method of cold calling
Cold calling isn’t often the first choice when it comes to searching for properties. It can be time consuming and feel like an inefficient use of time. It also takes most people out of their comfort zones. These are exactly the reasons you SHOULD be cold calling! Other investors are usually not doing it, which means they are missing out on the potential properties that you might find. Make a script and pick up the phone. Feel free to tweak your script as time goes on, and know that the more you call, the more comfortable you will be doing it. You should not spend all of your valuable prospecting time cold calling, but make sure to block off some time for it every week. The investor who is willing to pick up the phone often gets the undervalued property.
2 – Rental properties equal cash flow
Monthly rent payments become a steady stream of residual income. This cash flow can be used to make improvements on the property itself or set aside to be used to make improvements on other properties in your portfolio. Having a tenant can also be a good way to find a prospective buyer. Many tenants will eventually inquire about purchasing the property. This opens up a lot of possibilities for you as far as a rent to own or seller financing type arrangements. It gives you added leverage and more options on how you might move your portfolio forward in the future.
3 – Recognize and protect your most valuable asset
The most valuable asset in any real estate portfolio is the INVESTOR! After all, it was YOU who found the properties, nurtured the deals and uncovered the profits and cash flow. As the most valuable asset in your portfolio, it stands to reason that the better your portfolio does, the more valuable your time becomes. A successful investor will find ways to delegate tasks that take their time and attention away from growing their portfolio. One proven way to do this is to hire a property management Walnut Creek California company to manage your properties. Aside from month to month management duties, they can also do research, network and assist in bringing additional opportunities to the table. They can also assist you find quality tenants with their large pool of prospective renters looking for Walnut Creek houses for rent.
4 – Know when to walk away and have the courage to do so
When it comes to real estate, very few investors have a spotless track record. Almost everyone gets into a property that doesn’t pan out the way they thought it would. If a certain property starts to eat up too much capital or takes up too much of your time, it is best to find a way to move on from that property. You might be tempted to hold onto a bad property just to save face or hope to turn it around. The sooner you learn to cut your losses and move on, the sooner you will free up your time, energy and financial resources to find a property that generates a profit.
Be sure to watch for a future blog post where we will discuss some ways to evaluate where your portfolio stands today.