How to build a great property portfolio
“Hello and welcome back to Berman Buys, daily buying tips from Dean Berman.
Today I want to discuss what makes a great property portfolio.
I will start of by providing a simple analogy to help you understand my point.
You’re in a restaurant, and hungry.
It’s a degustation menu (which basically means a bunch of courses designed to flow from one to the next), well known restaurants like Testuyas do it.
I haven’t eaten there though, so can’t say from experience!
What I’m getting at is each course builds on the last one.
Which is where my analogy comes together.
A great property portfolio is much like this dining experience.
Each property compliments the last.
Each property builds on the last.
One has great land content, the other may be in a more prime location, while the next one may be a knock down rebuild and the next could be very high yielding.
You can simply repeat the one process over and over again, which works great, such as knock down rebuilds or renovations.
But to have a truly diversified buy and hold portfolio you want to purchase in a variety of locations to take advantage of the various growth cycles.
I like houses.
I also like great land content
In my opinion, the more you can do with the properties inside the portfolio the better, as they lend themselves to multiple options to potentially profit from into the future.
So you want your portfolio to have the process of the degustation menu, but the choice of a la carte.”