It can be difficult to know when the right time to start expanding your real estate investment portfolio is. However, it is an important process for all property investors to go through if they want to be successful. Learn to recognize the signs and ask yourself the right questions. Here is how you will know.
Look At Your Finances
If you are not in a financial position where it is wise to invest in more properties, you obviously shouldn’t. However, if your current properties are producing solid revenue and things are going relatively smoothly, it might be time to consider adding more properties. One sure sign is if your revenue has hit a plateau and you aren’t gaining or losing any money. To start growing again, you will need to start looking for new properties.
One scenario where you are ready for growth is if you have recently sold some properties and are now ready to look for more. You may also be just starting out and ready to buy your next property after your first. If your finances are lined up, you have the money and opportunities are presenting themselves, it is a sure sign that you are ready to grow.
Look At Your Schedule
Growing your investment properties portfolio will take time. Look at how much time you have to work on your portfolio in addition to how much time your current properties are already using up. If you feel you have enough time to put into acquiring new properties, you might just be ready to take that next step.
If you are spending so much time working on and managing your properties that you are never expanding or passing up opportunities to do so, it might be time to look into hiring a property management firm. A property manager will take much of the burden of maintaining your properties off your shoulders so you can focus more on the business side of your portfolio. Choose a firm that is flexible, will fit into your schedule and will be respectful of your time.
Have There Been Changes In The Market?
The housing market is always changing, and property investors need to understand current trends and take advantage of them. If there is growing interest in a certain area for buyers, for example, then it may be worth looking to buy some of those properties before prices and demand increase too far. Always be smart when you invest and be ready to jump on opportunities when they present themselves. Housing can sell very fast in many high-demand areas, particularly cities, and investors need to be able to know the best locations for house hunting.
This necessitates considerable amounts of research and knowledge on the part of the realtor. You may even have to shift your business model and type of properties you specialize in due to significant changes in the market. A qualified realtor with investing experience can be an invaluable ally in choosing where to buy.
Do You Have A Good Real Estate Agent?
Not every real estate agent is experienced in working with property investors, so not just any agent will do for your purposes. On Q Realty specifically offers services for investors. Property investors also want to find an agent they can have a long-term relationship with. An agent you work with over a long period of time will understand your goals and be able to match you up with the best properties possible.
Do You Have A Good Property Management Company?
A quality property management company is a must for most investors. A management firm is equipped to manage the day-to-day needs of your properties while your attention is firmly where it needs to be – on growing your investment business. They will collect rent, find quality, handle tenant questions and complaints, get contractors to perform regular maintenance and more.
Your manager will also be familiar with your portfolio. This allows him or her to be able to give you information and advice that can be instrumental in deciding whether it’s time to add more properties.
If you have gone over and answered the important questions and determined you are ready to add more properties to your portfolio, great! Consider partnering with On Q Property Management’s Real Estate Division, On Q Realty to find the best properties to add to your portfolio for the right price.