How to get Started with Building your own Property Portfolio
The secret to building a long-term, stable, buy-to-let property portfolio revolves around being able to actually source great property deals. Sure, there are plenty of other elements that will nudge you towards success but the ability to find the right houses to buy is by far the most important factor in this game.
How to Find the Right Property Deals
Well, because of this many new investors feel overwhelmed when trying to start their property business and portfolio and feel like their trying to find a needle in a haystack when they look for that 'perfect' property deal.
Some are unsure about which properties offer the best rental yields. Others get frustrated on knowing where to even start with building a property portfolio.
It Doesn't Have to Be that Way
The key is to keep it simple and take it one step at a time.
Now, if you already know the type of properties to look for and you know your investment strategy, then your one step ahead of your competition already.
Next, you need to know the area you’re going to invest in.
...I'll cover this a bit further for you below,
But, first up, let's consider... how to actually find the properties?
Since I started in property back in 2005, I’ve tried many different methods and used many different tools. I have refined the process (through much trial and error) of finding good rental properties and creating a property portfolio.
As a result, I’ve developed some key strategies that help me find the very best property deals - and I’m going to share these with you, so you will have the foundations of knowing how to build a property portfolio.
One of the benefits of sourcing from Estate Agents is that, once they realise you’re someone they can work with (and more importantly you can deliver when you say you will), they will offer you deals regularly.
Unfortunately, it takes time to get to this stage.
If they don’t know you, it’s unlikely they’ll pass you their very best deals in the beginning. So you have to be proactive, find the gems they have on their books and bring the conversation to them….
Fortunately, most of your property research can be done online.
Every estate agent uses the internet to list their properties, but they don’t all use the same sites. So, it's important to look through the property portals and not limit yourself to just one.
These portals will give you access to all of the properties that are 'on the market'.
A lot of the very best deals are to be found before they even come to market.
With the right marketing and strategy, you will get in ahead of other buyers and, by negotiating directly with the vendor, you can achieve a much better win-win situation for both you and the seller.
Because this is a proactive form of deal-finding... you need to be very clear what you’re looking for.
To help with this I would recommend using something like the Royal Mail Door to Door service.
This can really help you map out your area. It provides you with detailed demographics, breakdowns on household numbers, and even property types within a given postcode.
Combine this with the heat-mapping strategy as I've laid out in this quick video and you'll have a great starting point for mapping out your local area
Once you know your area, you will need to consider how you to market the properties you've found.
I use a range of methods depending on which property style, price range and condition I am looking for. These include:
✓ Door to Door Leafleting
✓ Newspaper adverts
✓ Cards in Newsagents
✓ Customer Referrals
I also have a couple of other methods and resources which work a treat. I'll be keeping these, up-my-sleeve, I'm afraid. These methods are what gives my mentorship and training clients the edge over the competition.