How to Start Your Commercial Property Portfolio

Having a steady commercial properly portfolio can provide a reliable return on investment, especially when the property listings portfolio is well established and well set-up. You’ll find property there that is well positioned and close to necessary amenities, this then attracts top corporates (PropList). 

A property portfolio can be owned by an individual, a group of people or a company. With multiple properties, you enjoy many benefits and you will naturally benefit from multiple streams of income. The secret now is how to start one of these property portfolios. 

For starters, you don’t need to be rich or old. True, having capital available does simplify things, but there are other ways people can get a property portfolio going and at an early age too. In fact, one of the more common ways is to team up with friends and then make a joint purchase. 

A good First Investment sets You off 
A good first investment is the foundation of further purchases as well as financing for them. A quick idea of how to start a commercial property portfolio – 

• Start small and choose your first investment wisely. 
• Understand your financial aims – are you interested in capital appreciation or looking rather to invest in property that will provide you with a rental income? 
• Watch your cash flow as you need to cover mortgage payments as well as other costs while still providing you with a reasonable return. 
• Dissatisfied tenants will ensure your property portfolio never grows. So the most important is to ensure your tenants are satisfied with their lot. It is why it is important to choose the right tenants. 

Ways to Invest 

The commercial property market is basically made up of shops, offices and industrial buildings. You can buy a fund which holds property in a portfolio or you can buy the property yourself. Investors can also buy shares in a real estate investment trust which has a portfolio of properties. This is a less diverse way to invest because it’s just one company. 

If you don’t have much cash, you can still start to invest in property by looking at other useful ideas such as – 
• Borrowing against the home you have as you have equity in your home. 
• Many people rent out empty rooms in their home. 
• Borrow a deposit from a wealthy family member. 
• To earn some money, you can become a buyer’s agent where you help buyers find houses to purchase This will also help you find out useful information about the property market. Becoming a leasing agent can help you learn something about the landlord business. These are just ideas to help you earn some bucks to get into the property portfolio business. 

Too much info on starting a commercial property portfolio can be overwhelming for somebody new to the trade. These are just basic ideas to get you started, and even though there will be challenges, be constantly learning and you can be relying on a consistent and fun way to earn money from property.

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