How to Expand Your Real Estate Portfolio in 2021
Real estate investing is a valuable tool that can enable you to build your own personal wealth. By investing in commercial property, you can create passive income that will pay dividends for decades to come.
Whether you are researching the process of purchasing your very first commercial real estate investment or you are seeking to rapidly expand your real estate portfolio, read on for proven strategies from a family office that has successfully grown and scaled a diverse real estate portfolio.
Bigger Investments
When choosing your ideal real estate investment, look beyond the price tag and consider the potential revenue generation and future potential buyer should you choose to sell your property. More units and square footage will often mean more opportunities for passive income generation without a significant investment of time and energy.
Think Long-Term
At Scandia Company, we are staunch believers in building value through long-term, thoughtful investments in real estate holdings. Rather than looking for a property to quickly flip and sell, we have found financial growth through investing in properties that have the potential to generate passive income for years and even decades to come.
Diversify
Diverse real estate portfolios are better positioned to weather economic downturns. While developing a specialty within a specific property type has its advantages, it is wise to diversify your portfolio so that it includes several asset types to make your passive income more recession proof. If your real estate holdings are all within one specific type of property consider expanding into other areas such as multi-unit residential properties, free standing office buildings, industrial parks, or retail complexes.
Location, Location, Location
Instead of seeking out the cheapest deal, your best value will be in discerningly finding the best deal. There is a good reason that it has become a cliche to choose a commercial real estate property based off of location. Specific properties within each market and sector will perform better than others due to the supply and demand levels in their respective locations. To make the best investment, research the asset types that can be most profitable in your desired location rather making your decision solely based upon price per square foot.
Hard Work and Discipline
At the end of the day, no matter how strategic and well played your real estate investment decisions are, nothing will ever replace the basics of hard work, discipline and rigor. As a property owner, real estate developer, or landlord, these three fundamental building blocks are crucial to success. At Scandia, we have learned that tenacity and disciple are vital to weathering the storms that naturally come with being an investor and business owner.
If you’re interested in learning more about Scandia Company’s approach to investing in real estate holdings, our portfolio and how we can help you grow your own, reach out to us.