Building a real estate portfolio can seem like an impossible pipe dream, even for the most ambitious investors. Sure, there’s the big hurdle of taking on your first investment, and maybe even your second investment. But how do you actually build up your portfolio to a point where it’s an impressive size, and diverse at the same time?
We’ve been wondering this ourselves, so we wanted to bring in an expert to break it down for us. Enter: Winston Deloney. Deloney is an expert real estate investor who built up his diverse real estate portfolio from the ground up. Now, he’s sharing some of his key tips and secrets, for building up a rental property portfolio.
Winston, why did you get started in real estate?
I was always drawn to real estate because of how exciting I found it, and because of how successful I saw others could be. I wasn’t happy just slaving away at a 9-to-5 job, and definitely always thought of myself as more of an entrepreneur.
So real estate definitely felt like a natural fit, but I have to admit, it was a slow-go from the beginning.
Why do you say that?
I think there’s a big gap between the different stages of real estate investing. Here’s the example: so, you decide you want to be a real estate investor, that’s the first step.
It can take months or even years to actualize that step. Then, you have that first investment property, but it’s going to be a learning curve, because it’s your first.
So, it takes you a while to get comfortable with it. This pattern continues for all of the different stages of investing, like building up a portfolio.
Why are you such a fan of rental properties?
Real estate investing is stable and successful, but there’s one main criticism about it: it can be hard to liquidate. Meaning when you actually need the money, you can just sell it off at the drop of a hat like a stock.
It can take ages to actually sell a property and see the money from it. But that profitability issue is not the case with rental properties. With rental properties, you’re seeing a constant stream of passive income, along with your potential for the ability to liquidate.
To me, that’s such a win-win scenario, that rental properties are hands-down the best option for investing.
When you make a decision to own a rental property, you also make the decision to become a real estate investor.
But that is only the beginning of the responsibility. As the owner of a rental unit, you also become a landlord.https://t.co/NNR11rUpWQ
— Winston Deloney (@DeloneyWinston) August 19, 2020
How did you build your rental property portfolio?
Slow and steady, especially at first. Like I said, there can be big gaps in the different stages of investing, especially if you’re self-taught, like myself. I started off with on rental property, and it was definitely a learning experience.
I had to not only learn how to take care of the property, and market it, but how to deal with renters and landlord operations. I also had to learn about outsourcing and decide which tasks I could assign to others.
And what about after that first property?
The learning curve is steep, but the great news is that once you’re climbed that mountain, you get to stay on top. Being a landlord doesn’t really change much from property to property, so learning how to do it is like an investment in your own success.
But yeah, after that one property, I slowly started to acquire some others, one at a time. And then I was able to double my properties, and then again. The key for me was building a rock-solid foundation, so that when I grew, I was able to handle it.