5 Ways to Build a Real Estate Portfolio From Scratch in 2021

Think becoming a real estate investor isn’t an option for you? By taking action now, you can begin building your real estate portfolio, which is one of the surest ways to earn enough to enjoy the retirement of your dreams! Real estate investors know that they can build wealth while creating more monthly cash flow. They are also planning for the passive income they can rely on in the future. We will cover five ways you can build your Kansas city real estate portfolio from scratch. 

Set Goals and Make a Plan

Real estate investing is a business, and it’s essential for the best outcome that you educate yourself about the subject of analyzing deals before you begin. This industry can be difficult to master, which is why I do my best to partner with people and collaborate when necessary. There was a time when I wasn’t sure if I wanted to continue investing in my hometown. I considered areas like Washington because of the appreciation opportunity around Seattle.

There’s a ton of experienced home buyers in Washington. I’ve collaborated with local home buyer Keith of Kind House Buyers. He offered a good perspective on building a portfolio of investment properties in Washington. It’s very different from my market. I didn’t pursue it, but it opened my eyes and gave me a new perspective on real estate around the country.

Multi-Family Property 

By purchasing multi-family housing and living in one of the units, you can get started with your Kansas city real estate portfolio from scratch. You’ll qualify for mortgage rates as a primary residence, saving a great deal of money. You’ll receive tax deductions, such as the ability to write off repairs and other qualifying expenses because it is an income property! You’ll also have the benefit of your renters paying at least a portion of your mortgage payment, all while building equity, as you hold the property over the long term. 

Invest in Land

Another way to start up your Kansas city real estate portfolio from scratch is by investing in raw land because you can begin with a smaller investment and may not even require a bank loan to get started. 

Depending on the tract’s size, the land could then be subdivided and sold for a profit, lease to renters, develop your property with new construction, or simply hold the property, allowing it to grow in value over time. Investing in raw land, and exploring the multitude of income opportunities land offers, is a wise way to strengthen and diversify your portfolio.

Mobile Homes

When creating your Kansas city real estate portfolio from scratch, you may want to invest in mobile homes, generally much less than traditional homes; they make an excellent entry-level investment. Additionally, they offer your portfolio diversity by tapping into a different Kansas city housing market sector. As with land and other investment opportunities, there are many ways you can profit from mobile homes, such as rehabbing and resales, rental, or even offering a rent-to-own agreement.

Partnership

You could kick off your Kansas city real estate portfolio from scratch by investing with a partner. Naturally, you’ll want to do your due diligence and seek out trusted and knowledgeable partners. The right partners can help you successfully build a real estate business that is mutually beneficial—avoiding the costly lessons learned through the pitfalls of poorly thought-out partnerships. Consider working with a trusted family member or friend with a record of success in real estate investments or, better yet, network until you find a professional that you can feel confident in from the real estate industry.

Would you like to begin building your Kansas city real estate portfolio from scratch? There’s no reason to go it alone! We make it easy; why not let the experienced professionals at ShawnBuysHousesKC.com help you start making real estate investments in Kansas city now? ShawnBuysHousesKC.com can guide you through every step of the way, ensuring you feel confident in your investments. Send us a message if you need to sell your fast house in Kansas City, or call ShawnBuysHousesKC.com at (816) 542-2776 today!

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