Hi.
It's Rob from Property Investments UK and in today's video we're going to be looking
at how you can build a portfolio of properties of 11 or more houses or apartments with a
starting pot of only 50,000 pound.
Now, I get asked very often by clients how they can grow a portfolio of properties when
they're just starting out with any one deposit pot.
It can seem quite confusing in terms of how you get maybe 50,000 pound to grow into a
number of houses, a number of properties, especially if you're looking for double digits,
you want 10, 11 more houses or properties to add and build a property portfolio.
Very often, the best way that we see this working for clients is by doing something
called a two plus one strategy.
Effectively, for every three properties that you consider, out of those deals you might
consider maybe selling two and keeping one or you might consider keeping two and selling
one, but what it ultimately allows you to do is just bring some money back into that
pot so that you can then reinvest that to grow your portfolio.
One of the down sides of building a portfolio is if you just find one very good deal and
you put 50,000 pound into that project, you've then got to wait for some level of significant
growth before you can maybe refinance or sell the property and pull some money back out.
It's going to kind of limit your portfolio growth, and especially if you're keeping it
and just simply relying on rental income to grow an extra deposit pot.
It might take a long time to do that.
By selling properties with a bit of a plan in mind, and say, out of every three deals,
if we're very aggressive on building the portfolio, we have some funds elsewhere that we might
be able to rely on, other than just the 50K, then maybe we'll keep two and sell one.
If you want to be a bit slower with portfolio growth and you're maybe a little bit risk
averse in terms of how many deals you want to kind of take on in the early days, then
maybe selling two and just keeping one of those properties would work fantastic, because
it will allow you to reinvest that money, build a bigger deposit pot, and then you can
continue to buy and grow your portfolio in that way.
Now to go alongside that strategy, what I'd also suggest is that what we see very often
with clients is they want to go quickly, so they overestimate what they might be able
to achieve in a 12 month time frame and then if it doesn't happen they get very frustrated
without potential growth.
That's even if they've been involved in properties for maybe five plus years and they just want
to see some quick growth now within the next 12 months, or also for people who are brand
new to property.
What I'd say is don't overestimate that first kind of year, if it were.
Keep a bit of an idea in mind of what you want to achieve and obviously look to try
and grow portfolio by keeping some and selling some, but have a little bit of a longer vision
in mind.
To go alongside that is don't underestimate what you can achieve in 5 or 10 years time.
If you focus now with a little bit of a plan, the goals that you can hit in 5 or 10 years
time in property can be massive, so if you have a two plus one strategy and every six
months you're kind of developing and selling a property or keeping the property, you'll
get some significant growth within quite a short space of time that will give you a great
long term property portfolio.
Hopefully that helps, give you a bit of an idea of what is possible with 50,000 pound.
We'll look at some other videos in a mini-series, depending on where you're starting off.
If you're starting off with 1,000 pound or 1,000,000 pound in your starting property,
there's loads of options out there for you.
Hopefully that helps.
Any questions, don't hesitate to get in touch and I look forward to catching with you again
soon.
All the best.
Thank you for watching this video.
If you like this content and you'd like to join our free online property training course,
we've got a link for it on this page.
In there, we convert a range of different property strategies to help you get started
either building a long term property portfolio or creating cash flow in property business.
We also look at ways to increase your return on investment with any of the properties you
may be considering.
We also have a couple of cheat sheets and downloadable documents in there as well.
Simply click on the link to join the free training course today.