SlideShare a Scribd company logo
1 of 12
4 Strategies
for Building a
Strong
Investment
Portfolio inTX
Building a strong investment portfolio takes smart financing, a
keen eye for properties and an understanding of existing and
future markets. Every real estate investor tends to find niche
areas to invest in. However, here are 4 strategies for building a
strong investment portfolioTX. With more experience, you will
learn to master each strategy to improve your portfolio holdings.
Core portfolio holdings are the
foundation of most investment
strategies. In this strategy, you
buy and hold properties, whether
commercial or residential. As you
lease the properties, you are able
to take advantages of long-term
tax strategies while building
equity paid for by tenants.
Many real estate investors begin
with this strategy as they buy a
personal property to renovate, live
in it for a while and later step up
into a bigger and better home.
This presents an advantage.
Owners are able to learn about
the market with less risk since they
owner doesn’t invest in a rental
first; they learn about
maintenance and other issue and
are better able to gauge the rental
price.
Value-added opportunities are
similar to core portfolio holdings in
the sense that they aren’t an
immediate flip. In the value-added
strategy, investors foresee the real
estate market increasing five to seven
years down the road. This insight
could be the result of incoming
developments or other community
improvements making the property
an attractive mid-range hold.
In some cases, the investor
himself will work on the
improvements and develop the
property himself. Investors must
have enough cash flow resources
to maintain and improve the
property during the course of
holding and execution of the
investment strategy. Because the
timelines are accelerated, it poses
a higher risk than core
investment holdings.
As this strategy sounds by its name,
investors seek to take quick
advantage of a situation. This is
most prominently seen in TX when
distressed properties become
available and the market is hot.
Investors jump at the opportunity
for a quick in and out strategy to
generate returns but reclaim cash
flow as quickly as possible.
While this strategy is often
executed quickly in less than a
year, Investors may seek to hold a
property up to three. Investors
need to have a strong pulse on
the market and be able to jump
quickly in with cash purchases
and rehabs or development of
properties. This strategy is higher
risk than buying and holding
strategies like core and core-plus.
Real estate investors will evaluate the
amount of equity and debt
maintained in their portfolio. While
investors seek to improve equity
positions with savvy purchases, they
also understand how to leverage debt.
Leveraging debt means using the
equity in one property to obtain debt
to purchase a new property in a cash-
like deal. To sellers, the money comes
in as cash because the debt is tied to a
different property.
An example is getting an
equity line of credit on one
property, taking cash out and
using it for a new purchase.
Once the new investment deal
is closed, the investor can
improve the property, getting
it reappraised and apply for a
line of credit on it to either
pay off the first line of credit
or purchase another property.
Please Like and Share
Now if you found some
value in the video!
SUBSCRIBE FOR MORE

More Related Content

What's hot

What's hot (20)

A Simple Investment Guide
A Simple Investment GuideA Simple Investment Guide
A Simple Investment Guide
 
Types of mutual fund
Types of mutual fundTypes of mutual fund
Types of mutual fund
 
mutual fund- an investment option
mutual fund- an investment optionmutual fund- an investment option
mutual fund- an investment option
 
Presentation on Mutual funds
Presentation on Mutual fundsPresentation on Mutual funds
Presentation on Mutual funds
 
portfolio management
portfolio managementportfolio management
portfolio management
 
Crystal Capital Partners - Brochure
Crystal Capital Partners - Brochure Crystal Capital Partners - Brochure
Crystal Capital Partners - Brochure
 
Investment process
Investment processInvestment process
Investment process
 
Investment avenues in india
Investment avenues in indiaInvestment avenues in india
Investment avenues in india
 
mutual funds
mutual fundsmutual funds
mutual funds
 
Ch 14 investment financing strategies
Ch 14 investment financing strategiesCh 14 investment financing strategies
Ch 14 investment financing strategies
 
Investing in Real Estate
Investing in Real EstateInvesting in Real Estate
Investing in Real Estate
 
Short Selling: A Brief Overview and Regulatory Update
Short Selling: A Brief Overview and Regulatory UpdateShort Selling: A Brief Overview and Regulatory Update
Short Selling: A Brief Overview and Regulatory Update
 
Mutual fund
Mutual fundMutual fund
Mutual fund
 
hedge funds
hedge fundshedge funds
hedge funds
 
The Hedge Fund Advantage
The Hedge Fund AdvantageThe Hedge Fund Advantage
The Hedge Fund Advantage
 
Commercial Loans
Commercial LoansCommercial Loans
Commercial Loans
 
Mutual Funds
Mutual FundsMutual Funds
Mutual Funds
 
Shelf Registration
Shelf RegistrationShelf Registration
Shelf Registration
 
Reichman Partners -Investment for your better future
Reichman Partners -Investment for your better futureReichman Partners -Investment for your better future
Reichman Partners -Investment for your better future
 
Investment management
Investment managementInvestment management
Investment management
 

Similar to 4 Strategies for Building a Strong Investment Portfolio in TX - www.TheTexasHouseBuyer.com

How to WIn at Net Lease Investments
How to WIn at Net Lease InvestmentsHow to WIn at Net Lease Investments
How to WIn at Net Lease InvestmentsDavid Wrubel
 
Established Income Routes in Real Estate Investing
Established Income Routes in Real Estate InvestingEstablished Income Routes in Real Estate Investing
Established Income Routes in Real Estate InvestingStephen J Izzi
 
Real Estate investment vs Stock. Which is better choice ?
Real Estate investment vs Stock. Which is better choice ?Real Estate investment vs Stock. Which is better choice ?
Real Estate investment vs Stock. Which is better choice ?Invest Tech
 
Peer-to-Peer Lending is Growing in Popularity with Investors
Peer-to-Peer Lending is Growing in Popularity with InvestorsPeer-to-Peer Lending is Growing in Popularity with Investors
Peer-to-Peer Lending is Growing in Popularity with InvestorsDean Graziosi
 
André Stewart Article.docx
André Stewart Article.docxAndré Stewart Article.docx
André Stewart Article.docxinvestfarcapital
 
What are the Exit Strategies for Real Estate Investment in Dubai
What are the Exit Strategies for Real Estate Investment in Dubai What are the Exit Strategies for Real Estate Investment in Dubai
What are the Exit Strategies for Real Estate Investment in Dubai Great Dubai
 
How To Create Wealth With Real Estate Leveraging The Bank's Money.pdf
How To Create Wealth With Real Estate Leveraging The Bank's Money.pdfHow To Create Wealth With Real Estate Leveraging The Bank's Money.pdf
How To Create Wealth With Real Estate Leveraging The Bank's Money.pdfRelaxMe1
 
What is Fractional Ownership in Real Estate and How Does it Work
What is Fractional Ownership in Real Estate and How Does it WorkWhat is Fractional Ownership in Real Estate and How Does it Work
What is Fractional Ownership in Real Estate and How Does it WorkJohnEdward80
 
Strategic Investing Benefits: Unlocking the Power of Strategic Investment
Strategic Investing Benefits: Unlocking the Power of Strategic InvestmentStrategic Investing Benefits: Unlocking the Power of Strategic Investment
Strategic Investing Benefits: Unlocking the Power of Strategic InvestmentSibanandaHariSahu
 
How to make real estate investments beneficial
How to make real estate investments beneficialHow to make real estate investments beneficial
How to make real estate investments beneficialThe Real Estate CONNECT
 
Spark sale-leaseback strategy
Spark   sale-leaseback strategySpark   sale-leaseback strategy
Spark sale-leaseback strategyChris Fyvie
 
Yaser Nasser Alulait tells How to invest in Real Estate?
Yaser Nasser Alulait tells How to invest in Real Estate?Yaser Nasser Alulait tells How to invest in Real Estate?
Yaser Nasser Alulait tells How to invest in Real Estate?Yaser Nasser Alualit
 
FixFlipStategyGuide
FixFlipStategyGuideFixFlipStategyGuide
FixFlipStategyGuideKen Meyer
 
Property-Investors-Guide David Scouller
Property-Investors-Guide David ScoullerProperty-Investors-Guide David Scouller
Property-Investors-Guide David ScoullerDavid Scouller
 
Investment Portfolio: A Comprehensive Guide to Building and Managing Your Wealth
Investment Portfolio: A Comprehensive Guide to Building and Managing Your WealthInvestment Portfolio: A Comprehensive Guide to Building and Managing Your Wealth
Investment Portfolio: A Comprehensive Guide to Building and Managing Your WealthStock Venture
 

Similar to 4 Strategies for Building a Strong Investment Portfolio in TX - www.TheTexasHouseBuyer.com (20)

How to WIn at Net Lease Investments
How to WIn at Net Lease InvestmentsHow to WIn at Net Lease Investments
How to WIn at Net Lease Investments
 
Established Income Routes in Real Estate Investing
Established Income Routes in Real Estate InvestingEstablished Income Routes in Real Estate Investing
Established Income Routes in Real Estate Investing
 
Real Estate investment vs Stock. Which is better choice ?
Real Estate investment vs Stock. Which is better choice ?Real Estate investment vs Stock. Which is better choice ?
Real Estate investment vs Stock. Which is better choice ?
 
Peer-to-Peer Lending is Growing in Popularity with Investors
Peer-to-Peer Lending is Growing in Popularity with InvestorsPeer-to-Peer Lending is Growing in Popularity with Investors
Peer-to-Peer Lending is Growing in Popularity with Investors
 
André Stewart doc.docx
André Stewart doc.docxAndré Stewart doc.docx
André Stewart doc.docx
 
André Stewart Article.docx
André Stewart Article.docxAndré Stewart Article.docx
André Stewart Article.docx
 
André Stewart PDF.pdf
André Stewart PDF.pdfAndré Stewart PDF.pdf
André Stewart PDF.pdf
 
Wealth Creation
Wealth CreationWealth Creation
Wealth Creation
 
What are the Exit Strategies for Real Estate Investment in Dubai
What are the Exit Strategies for Real Estate Investment in Dubai What are the Exit Strategies for Real Estate Investment in Dubai
What are the Exit Strategies for Real Estate Investment in Dubai
 
How To Create Wealth With Real Estate Leveraging The Bank's Money.pdf
How To Create Wealth With Real Estate Leveraging The Bank's Money.pdfHow To Create Wealth With Real Estate Leveraging The Bank's Money.pdf
How To Create Wealth With Real Estate Leveraging The Bank's Money.pdf
 
What is Fractional Ownership in Real Estate and How Does it Work
What is Fractional Ownership in Real Estate and How Does it WorkWhat is Fractional Ownership in Real Estate and How Does it Work
What is Fractional Ownership in Real Estate and How Does it Work
 
Strategic Investing Benefits: Unlocking the Power of Strategic Investment
Strategic Investing Benefits: Unlocking the Power of Strategic InvestmentStrategic Investing Benefits: Unlocking the Power of Strategic Investment
Strategic Investing Benefits: Unlocking the Power of Strategic Investment
 
How to make real estate investments beneficial
How to make real estate investments beneficialHow to make real estate investments beneficial
How to make real estate investments beneficial
 
Spark sale-leaseback strategy
Spark   sale-leaseback strategySpark   sale-leaseback strategy
Spark sale-leaseback strategy
 
Yaser Nasser Alulait tells How to invest in Real Estate?
Yaser Nasser Alulait tells How to invest in Real Estate?Yaser Nasser Alulait tells How to invest in Real Estate?
Yaser Nasser Alulait tells How to invest in Real Estate?
 
FixFlipStategyGuide
FixFlipStategyGuideFixFlipStategyGuide
FixFlipStategyGuide
 
Property-Investors-Guide David Scouller
Property-Investors-Guide David ScoullerProperty-Investors-Guide David Scouller
Property-Investors-Guide David Scouller
 
Portfolio Strategies
Portfolio StrategiesPortfolio Strategies
Portfolio Strategies
 
Real estate
Real estateReal estate
Real estate
 
Investment Portfolio: A Comprehensive Guide to Building and Managing Your Wealth
Investment Portfolio: A Comprehensive Guide to Building and Managing Your WealthInvestment Portfolio: A Comprehensive Guide to Building and Managing Your Wealth
Investment Portfolio: A Comprehensive Guide to Building and Managing Your Wealth
 

Recently uploaded

Eco-Efficient Living: Redefining Sustainability through Leech's Green Design ...
Eco-Efficient Living: Redefining Sustainability through Leech's Green Design ...Eco-Efficient Living: Redefining Sustainability through Leech's Green Design ...
Eco-Efficient Living: Redefining Sustainability through Leech's Green Design ...Newman George Leech
 
Call Girls in Model Town Delhi 💯Call Us 🔝8264348440🔝
Call Girls in Model Town Delhi 💯Call Us 🔝8264348440🔝Call Girls in Model Town Delhi 💯Call Us 🔝8264348440🔝
Call Girls in Model Town Delhi 💯Call Us 🔝8264348440🔝soniya singh
 
The Omaxe State Dwarka Delhi-broucher.pdf.pdf
The Omaxe State Dwarka Delhi-broucher.pdf.pdfThe Omaxe State Dwarka Delhi-broucher.pdf.pdf
The Omaxe State Dwarka Delhi-broucher.pdf.pdfkratirudram
 
Call Girls In Vasundhara Ghaziabad ❤️8860477959 Low Rate Escorts Service In 2...
Call Girls In Vasundhara Ghaziabad ❤️8860477959 Low Rate Escorts Service In 2...Call Girls In Vasundhara Ghaziabad ❤️8860477959 Low Rate Escorts Service In 2...
Call Girls In Vasundhara Ghaziabad ❤️8860477959 Low Rate Escorts Service In 2...lizamodels9
 
9990771857 Call Girls in Noida Sector 1 Noida (Call Girls) Delhi
9990771857 Call Girls in Noida Sector 1 Noida (Call Girls) Delhi9990771857 Call Girls in Noida Sector 1 Noida (Call Girls) Delhi
9990771857 Call Girls in Noida Sector 1 Noida (Call Girls) Delhidelhimodel235
 
Ajmera Prive at Juhu, Mumbai E-Brochure.pdf
Ajmera Prive at Juhu, Mumbai  E-Brochure.pdfAjmera Prive at Juhu, Mumbai  E-Brochure.pdf
Ajmera Prive at Juhu, Mumbai E-Brochure.pdfManishSaxena95
 
83770-87607 ۞Call Girls In Near The Park Hotel (Cp) Delhi
83770-87607 ۞Call Girls In Near The Park Hotel (Cp) Delhi83770-87607 ۞Call Girls In Near The Park Hotel (Cp) Delhi
83770-87607 ۞Call Girls In Near The Park Hotel (Cp) Delhidollysharma2066
 
How to Build Multifamily and Laneway Suites in Toronto!! (feat. Expert Archi...
How to Build Multifamily and Laneway Suites  in Toronto!! (feat. Expert Archi...How to Build Multifamily and Laneway Suites  in Toronto!! (feat. Expert Archi...
How to Build Multifamily and Laneway Suites in Toronto!! (feat. Expert Archi...Volition Properties
 
Call Girls in Nehru Place Delhi 💯Call Us 🔝8264348440🔝
Call Girls in Nehru Place Delhi 💯Call Us 🔝8264348440🔝Call Girls in Nehru Place Delhi 💯Call Us 🔝8264348440🔝
Call Girls in Nehru Place Delhi 💯Call Us 🔝8264348440🔝soniya singh
 
Call Girls In Peeragarhi, Delhi↫8447779280↬Call Girls in Peeragarhi Delhi NCR
Call Girls In Peeragarhi, Delhi↫8447779280↬Call Girls in Peeragarhi Delhi NCRCall Girls In Peeragarhi, Delhi↫8447779280↬Call Girls in Peeragarhi Delhi NCR
Call Girls In Peeragarhi, Delhi↫8447779280↬Call Girls in Peeragarhi Delhi NCRasmaqueen5
 
SSPL The Strand Abodes Kharadi Pune Brochure.pdf
SSPL The Strand Abodes Kharadi Pune Brochure.pdfSSPL The Strand Abodes Kharadi Pune Brochure.pdf
SSPL The Strand Abodes Kharadi Pune Brochure.pdfabbu831446
 
Rustomjee The Panorama At Pali Hill, Bandra West, Mumbai - Brochure.pdf
Rustomjee The Panorama At Pali Hill, Bandra West, Mumbai - Brochure.pdfRustomjee The Panorama At Pali Hill, Bandra West, Mumbai - Brochure.pdf
Rustomjee The Panorama At Pali Hill, Bandra West, Mumbai - Brochure.pdfmonikasharma630
 
Cashpay_Call Girls In Gaur City Mall Noida ❤️8860477959 Escorts Service In 24...
Cashpay_Call Girls In Gaur City Mall Noida ❤️8860477959 Escorts Service In 24...Cashpay_Call Girls In Gaur City Mall Noida ❤️8860477959 Escorts Service In 24...
Cashpay_Call Girls In Gaur City Mall Noida ❤️8860477959 Escorts Service In 24...lizamodels9
 
Prestige Sector 94 at Noida E Brochure.pdf
Prestige Sector 94 at Noida E Brochure.pdfPrestige Sector 94 at Noida E Brochure.pdf
Prestige Sector 94 at Noida E Brochure.pdfsarak0han45400
 
Call Girls In Sahibabad Ghaziabad ❤️8860477959 Low Rate Escorts Service In 24...
Call Girls In Sahibabad Ghaziabad ❤️8860477959 Low Rate Escorts Service In 24...Call Girls In Sahibabad Ghaziabad ❤️8860477959 Low Rate Escorts Service In 24...
Call Girls In Sahibabad Ghaziabad ❤️8860477959 Low Rate Escorts Service In 24...lizamodels9
 
9990771857 Call Girls in Noida Sector 06 Noida (Call Girls) Delhi
9990771857 Call Girls in Noida Sector 06 Noida (Call Girls) Delhi9990771857 Call Girls in Noida Sector 06 Noida (Call Girls) Delhi
9990771857 Call Girls in Noida Sector 06 Noida (Call Girls) Delhidelhimodel235
 
SVN Live 4.22.24 Weekly Property Broadcast
SVN Live 4.22.24 Weekly Property BroadcastSVN Live 4.22.24 Weekly Property Broadcast
SVN Live 4.22.24 Weekly Property BroadcastSVN International Corp.
 

Recently uploaded (20)

Eco-Efficient Living: Redefining Sustainability through Leech's Green Design ...
Eco-Efficient Living: Redefining Sustainability through Leech's Green Design ...Eco-Efficient Living: Redefining Sustainability through Leech's Green Design ...
Eco-Efficient Living: Redefining Sustainability through Leech's Green Design ...
 
young call girls in Lajpat Nagar,🔝 9953056974 🔝 escort Service
young call girls in Lajpat Nagar,🔝 9953056974 🔝 escort Serviceyoung call girls in Lajpat Nagar,🔝 9953056974 🔝 escort Service
young call girls in Lajpat Nagar,🔝 9953056974 🔝 escort Service
 
Call Girls in Model Town Delhi 💯Call Us 🔝8264348440🔝
Call Girls in Model Town Delhi 💯Call Us 🔝8264348440🔝Call Girls in Model Town Delhi 💯Call Us 🔝8264348440🔝
Call Girls in Model Town Delhi 💯Call Us 🔝8264348440🔝
 
Low Rate Call Girls in Triveni Complex Delhi Call 9873940964
Low Rate Call Girls in Triveni Complex Delhi Call 9873940964Low Rate Call Girls in Triveni Complex Delhi Call 9873940964
Low Rate Call Girls in Triveni Complex Delhi Call 9873940964
 
The Omaxe State Dwarka Delhi-broucher.pdf.pdf
The Omaxe State Dwarka Delhi-broucher.pdf.pdfThe Omaxe State Dwarka Delhi-broucher.pdf.pdf
The Omaxe State Dwarka Delhi-broucher.pdf.pdf
 
9953056974 Low Rate Call Girls In Saket, Delhi NCR
9953056974 Low Rate Call Girls In Saket, Delhi NCR9953056974 Low Rate Call Girls In Saket, Delhi NCR
9953056974 Low Rate Call Girls In Saket, Delhi NCR
 
Call Girls In Vasundhara Ghaziabad ❤️8860477959 Low Rate Escorts Service In 2...
Call Girls In Vasundhara Ghaziabad ❤️8860477959 Low Rate Escorts Service In 2...Call Girls In Vasundhara Ghaziabad ❤️8860477959 Low Rate Escorts Service In 2...
Call Girls In Vasundhara Ghaziabad ❤️8860477959 Low Rate Escorts Service In 2...
 
9990771857 Call Girls in Noida Sector 1 Noida (Call Girls) Delhi
9990771857 Call Girls in Noida Sector 1 Noida (Call Girls) Delhi9990771857 Call Girls in Noida Sector 1 Noida (Call Girls) Delhi
9990771857 Call Girls in Noida Sector 1 Noida (Call Girls) Delhi
 
Ajmera Prive at Juhu, Mumbai E-Brochure.pdf
Ajmera Prive at Juhu, Mumbai  E-Brochure.pdfAjmera Prive at Juhu, Mumbai  E-Brochure.pdf
Ajmera Prive at Juhu, Mumbai E-Brochure.pdf
 
83770-87607 ۞Call Girls In Near The Park Hotel (Cp) Delhi
83770-87607 ۞Call Girls In Near The Park Hotel (Cp) Delhi83770-87607 ۞Call Girls In Near The Park Hotel (Cp) Delhi
83770-87607 ۞Call Girls In Near The Park Hotel (Cp) Delhi
 
How to Build Multifamily and Laneway Suites in Toronto!! (feat. Expert Archi...
How to Build Multifamily and Laneway Suites  in Toronto!! (feat. Expert Archi...How to Build Multifamily and Laneway Suites  in Toronto!! (feat. Expert Archi...
How to Build Multifamily and Laneway Suites in Toronto!! (feat. Expert Archi...
 
Call Girls in Nehru Place Delhi 💯Call Us 🔝8264348440🔝
Call Girls in Nehru Place Delhi 💯Call Us 🔝8264348440🔝Call Girls in Nehru Place Delhi 💯Call Us 🔝8264348440🔝
Call Girls in Nehru Place Delhi 💯Call Us 🔝8264348440🔝
 
Call Girls In Peeragarhi, Delhi↫8447779280↬Call Girls in Peeragarhi Delhi NCR
Call Girls In Peeragarhi, Delhi↫8447779280↬Call Girls in Peeragarhi Delhi NCRCall Girls In Peeragarhi, Delhi↫8447779280↬Call Girls in Peeragarhi Delhi NCR
Call Girls In Peeragarhi, Delhi↫8447779280↬Call Girls in Peeragarhi Delhi NCR
 
SSPL The Strand Abodes Kharadi Pune Brochure.pdf
SSPL The Strand Abodes Kharadi Pune Brochure.pdfSSPL The Strand Abodes Kharadi Pune Brochure.pdf
SSPL The Strand Abodes Kharadi Pune Brochure.pdf
 
Rustomjee The Panorama At Pali Hill, Bandra West, Mumbai - Brochure.pdf
Rustomjee The Panorama At Pali Hill, Bandra West, Mumbai - Brochure.pdfRustomjee The Panorama At Pali Hill, Bandra West, Mumbai - Brochure.pdf
Rustomjee The Panorama At Pali Hill, Bandra West, Mumbai - Brochure.pdf
 
Cashpay_Call Girls In Gaur City Mall Noida ❤️8860477959 Escorts Service In 24...
Cashpay_Call Girls In Gaur City Mall Noida ❤️8860477959 Escorts Service In 24...Cashpay_Call Girls In Gaur City Mall Noida ❤️8860477959 Escorts Service In 24...
Cashpay_Call Girls In Gaur City Mall Noida ❤️8860477959 Escorts Service In 24...
 
Prestige Sector 94 at Noida E Brochure.pdf
Prestige Sector 94 at Noida E Brochure.pdfPrestige Sector 94 at Noida E Brochure.pdf
Prestige Sector 94 at Noida E Brochure.pdf
 
Call Girls In Sahibabad Ghaziabad ❤️8860477959 Low Rate Escorts Service In 24...
Call Girls In Sahibabad Ghaziabad ❤️8860477959 Low Rate Escorts Service In 24...Call Girls In Sahibabad Ghaziabad ❤️8860477959 Low Rate Escorts Service In 24...
Call Girls In Sahibabad Ghaziabad ❤️8860477959 Low Rate Escorts Service In 24...
 
9990771857 Call Girls in Noida Sector 06 Noida (Call Girls) Delhi
9990771857 Call Girls in Noida Sector 06 Noida (Call Girls) Delhi9990771857 Call Girls in Noida Sector 06 Noida (Call Girls) Delhi
9990771857 Call Girls in Noida Sector 06 Noida (Call Girls) Delhi
 
SVN Live 4.22.24 Weekly Property Broadcast
SVN Live 4.22.24 Weekly Property BroadcastSVN Live 4.22.24 Weekly Property Broadcast
SVN Live 4.22.24 Weekly Property Broadcast
 

4 Strategies for Building a Strong Investment Portfolio in TX - www.TheTexasHouseBuyer.com

  • 1. 4 Strategies for Building a Strong Investment Portfolio inTX
  • 2. Building a strong investment portfolio takes smart financing, a keen eye for properties and an understanding of existing and future markets. Every real estate investor tends to find niche areas to invest in. However, here are 4 strategies for building a strong investment portfolioTX. With more experience, you will learn to master each strategy to improve your portfolio holdings.
  • 3. Core portfolio holdings are the foundation of most investment strategies. In this strategy, you buy and hold properties, whether commercial or residential. As you lease the properties, you are able to take advantages of long-term tax strategies while building equity paid for by tenants.
  • 4. Many real estate investors begin with this strategy as they buy a personal property to renovate, live in it for a while and later step up into a bigger and better home. This presents an advantage. Owners are able to learn about the market with less risk since they owner doesn’t invest in a rental first; they learn about maintenance and other issue and are better able to gauge the rental price.
  • 5. Value-added opportunities are similar to core portfolio holdings in the sense that they aren’t an immediate flip. In the value-added strategy, investors foresee the real estate market increasing five to seven years down the road. This insight could be the result of incoming developments or other community improvements making the property an attractive mid-range hold.
  • 6. In some cases, the investor himself will work on the improvements and develop the property himself. Investors must have enough cash flow resources to maintain and improve the property during the course of holding and execution of the investment strategy. Because the timelines are accelerated, it poses a higher risk than core investment holdings.
  • 7. As this strategy sounds by its name, investors seek to take quick advantage of a situation. This is most prominently seen in TX when distressed properties become available and the market is hot. Investors jump at the opportunity for a quick in and out strategy to generate returns but reclaim cash flow as quickly as possible.
  • 8. While this strategy is often executed quickly in less than a year, Investors may seek to hold a property up to three. Investors need to have a strong pulse on the market and be able to jump quickly in with cash purchases and rehabs or development of properties. This strategy is higher risk than buying and holding strategies like core and core-plus.
  • 9. Real estate investors will evaluate the amount of equity and debt maintained in their portfolio. While investors seek to improve equity positions with savvy purchases, they also understand how to leverage debt. Leveraging debt means using the equity in one property to obtain debt to purchase a new property in a cash- like deal. To sellers, the money comes in as cash because the debt is tied to a different property.
  • 10. An example is getting an equity line of credit on one property, taking cash out and using it for a new purchase. Once the new investment deal is closed, the investor can improve the property, getting it reappraised and apply for a line of credit on it to either pay off the first line of credit or purchase another property.
  • 11.
  • 12. Please Like and Share Now if you found some value in the video! SUBSCRIBE FOR MORE