Fantasy property portfolio example

This page is home to my fantasy property portfolio example...

This will be a fun post for me because I’m going to fantasise about how I’d build a property portfolio today, from scratch...

Knowing everything that I know now -- that I didn’t know when I started my portfolio for real -- nearly twenty years ago. 

I did alright first time round -- racking up over thirty properties in just under two years -- with little to none of my own money...

But the past twenty years have been an innovative time... and many new strategies have been popularised and perfected in that time. 

So, in this property portfolio example, I’m going to use a few of those too, so as to illustrate how they work, and how you can use them too, to start or grow your own portfolio. 

While there’s a lot to be said for perfecting and specialising in one strategy, I do think there’s a lot to be said for diversifying...

And in an ideal world, a mix of strategies is going to help you build a strong portfolio, that’s hedged against market changes and fluctuations. 

So, without further ado, let’s get on and build that portfolio!

BMV: build in instant equity...

Ok, so the first strategy we’ll start with is the old favourite that I used to build my portfolio: BMV (below market value). 

I’d start a local guerrilla marketing campaign, to get motivated sellers to call me (instead of having to chase them, or bother with estate agents).

This strategy will help me to collect a few assets that I’ll own, and build some instant equity into my new portfolio. 

As well as obviously letting some out, I’d probably flip one or two, to get access to some liquid cash, that I can use for some of the next strategies. 

Rent to rent: accelerate growth without mortgages...

Next, I’d start contacting letting agents and landlords direct to find rent to rent deals.

This strategy has several different advantages:

• No need for mortgages
• Little to no capital required to get into the deals
• High cash flow 

With this strategy, I won’t end up owning the properties involved, but I will get high cashflow from them, and that is going to be important to help accelerate the growth of my portfolio. 

It will also help me diversify my portfolio, because we’ll be targeting individuals who want to rent rooms (single professionals and students), instead of families. 

Rent to SA: diversify further...

Next, we’ll diversify further, by aiming for rent to rent properties suitable to run as serviced accommodation. 

The serviced accommodation sector caters to holiday makers and short stay professionals, and leverages sites such as Airbnb and Booking.com to get customers.

This means that we're not relying on private residential tenants for these units.

Serviced accommodation (SA) also delivers a very strong cashflow, if managed correctly and located in the right areas.

Sourcing: monetise the deals you don't buy yourself...

As I go along, I’ll definitely want to employ the property sourcing strategy, too.

In the course of speaking with motivated sellers -- and possibly even speaking to agents as I source rent to rent deals -- I am going to come across deals that may not be ideal for my portfolio…

For example deals that are less than, say 15% BMV.

Now, these deals may be perfect for another investor, and they may pay good money to access them…

So that’s what we’ll do.

We’ll sell these deals on to another investor, in exchange for a finder fee. 

This strategy is also known as “deal packaging”, and is a great way to monetise deals and leads that you don’t use yourself. 

It’s also a fantastic “starter strategy” for new investors.

Property portfolio example: add some rocket fuel...

And finally, in order to put some rocket fuel under the growth of my portfolio, I’m going to use deal sourcing agents to find other deals for me. 

This is a bit like cloning yourself, to be able to do more, and find more properties in the same amount of time. 

I did this when I was growing my own portfolio too.

I wasn’t sure to begin with, as I liked doing everything myself. 

But I soon discovered that I had been missing out. 

And I added some of my best properties to my portfolio that way. 

A sourcing agent may be able to find in other areas, to diversify your portfolio across different geographical regions too. 

We can connect you with trusted sourcing agents via our property deals alerts service, which delivers fresh new deals to your inbox almost every day.

Here are the sort of deals that you can expect:

• Discounted BMV deals,
• Rent to rent deals,
• Serviced accommodation deals,
• Lease option deals,
• HMO deals,
• Discounted portfolio deals,
• Property development deals,
• And even the odd commercial property deal.

Anyway, I hope you’ve enjoyed our fantasy property portfolio example...

And I look forward to being able to serve you in some way, in the near future. 

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