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Stepped Strategies

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Transcript

When investing in real estate, it can be really tempting to start looking at all these massive deals. Commercial properties, property development, subdivision renovation, so forth.

Now looking at it all you might think ”Well, I want some of that now because it’s got cash flow, It’s got proffered and everything The truth is you can actually get some of that now, but at the same time you don’t have to start it from day one. People like to do what I call “Step Strategies” and it’s something I’ve personally done with my portfolio. It’s knowing that these complex or Advanced strategies are going to be part of your investing portfolio. But you’ve taken steps to sort of take more normal approaches to property investing first, build up a foundation of assets so you can pivot into more steps easier.

Now, let me give you an example. If you start off your property purchases with a couple of regular properties and what I mean by regular is there may not be a massive value add but it still would be in well-placed locations, good cash flows in regions demonstrating good Capital Growth drivers.

Now when you start putting that together this might help you get confidence in your investing in property and you start putting that together, your first maybe a second maybe a third follows this time. Now looking at it this way you start to feel more confident with property, financing, deposits, understanding markets.

Now when you think of how fast you can save about you now go “I can save pretty quickly alongside a property portfolio that’s generating equity” You can start to take this equity in your savings put it together and perhaps navigate it to more advanced strategies. Then you might go “Well, look, I’ve hit this sort of balance of my portfolio and I want to start taking it to the next level” It might be triple x’s and duplexes. It might be unit blocks. It might be, subdivisions, granny flats, renovation for profit or even commercial but as you can see whilst, there’s a lot of exciting opportunities and properties some people like to do what I call a step strategy. They take their Foundation assets moving into very very high cash flow assets and then they start going into renovation deals, subdivision, development commercial and so forth.

Now some people can start right from here at the beginning but each person’s risk appetite in what you feel comfortable with may be different. Now by taking a step strategy approach not only will you have a bit more of a foundation of a portfolio that allows you to take on more risks, but you’ll be able to add on equity that you’ve built up with savings that you’ve got to potentially target larger size deals and at the same time you may not feel as bad targeting this commercial or boarding deals or renovation deals only because you have put together a decent portfolio of some, regular deals in markets that are moving along the way so by doing Step Strategies sometimes you can achieve these very exciting goals but without the whole worst case being as bad as someone who’s going into them from day one.

Hope that helps you and that’s it from us here at InvestorKit, the experts in wealth creation helping you take action.