As you grow your investment portfolio, you are ideally reviewing and adjusting your goals and plans for expansion.
Are you reaching out to the right partners?
Smart investors understand the value that property managers and real estate experts in Indianapolis can provide, especially when you’re thinking about the future.
At Red Door Property Management, we’re very good at handling the day-to-day leasing and management, and maintenance of your investments. We’re also very good at discussing investment strategies and how to leverage your current portfolio to grow it.
Here are some of our best tips for the investors we work with and those who have questions on how to enable smart and profitable growth.
Think Beyond Acquisitions
When you think about growing your investment portfolio, your first instinct may be to buy more properties.
That makes sense. A growing portfolio might include more doors.
But, you can also make more money with the properties you currently own. If acquiring new homes isn’t possible right now, expand in other ways. Maybe you can make some renovations that will increase your rental values by a hundred dollars a month. Or, you can use a 1031 exchange to sell a property that isn’t currently performing the way you want it to in exchange for a property (or properties) that might make you more money and push your portfolio a little further in terms of its potential.
You can also do different things with financing. Paying off a mortgage in 15 years instead of 30, for example, will give you some serious cash flow much sooner on an investment.
Leverage what you have if you aren’t going to grow by buying more properties.
Diversify What You Own
You can also grow your portfolio by diversifying what you own.
Let’s say you are planning to expand by purchasing a new investment property. Great. Why not buy something different than what you currently own? If you have mostly single-family homes, consider buying a multi-family building. Or, buy a single-family home if you generally invest in multi-family units. You can branch into commercial spaces or consider short-term rentals.
There’s a lot of room for growth in the Indianapolis rental market. Explore all your options.
Expand your Professional Network
Make sure you’re working closely with experts in Indianapolis real estate when you’re looking for Amy’s to grow your portfolio. You cannot do this successfully all on your own. You’ll need real estate agents you can trust and a property management team that can advise you about how much rent you’ll earn on a property and what you can expect to pay in maintenance.
A lender will help you finance additional investments. Your CPA or tax attorney can help you evaluate the tax benefits and risks to any type of portfolio growth.
Keep growing your network as you grow your portfolio. You’ll need all of the information, resources, and support you can access in order to be successful.
We believe in helping real estate investors do better. If you’d like to talk about where the market is going and how to expand your investment portfolio, we’d love to have that conversation. Please contact us at Red Door Property Management.
