How to Build Your Property Portfolio: The Essential Steps to Get Started
A lot of people want to invest in real estate and build a property portfolio, but most of them don’t know where to begin. In this blog, I will walk you through the key steps you need to take to start building your portfolio the right way.
If you are new to property and you’re unsure which strategy to use, read the blog on my website titled “What Strategy to Use for Beginners”, where I break down different strategies and help you pick the right one for your situation.
In this blog, we will focus on the exact steps you need to follow to build your portfolio from scratch if you already have money for the deposit.
Step 1: Choose the Right Strategy
The first step is deciding which strategy you will use to build your portfolio. There are many strategies in real estate, and the number of options can feel overwhelming. This is why it’s important to choose the strategy that matches your goals.
How do you decide?
You start with your goal.
For example, imagine you want to replace your 9-to-5 salary. Let’s say you earn a good income – maybe six figures – and you want to replace that income. You’ve saved some money, but you don’t have unlimited capital.
In this case, ideal strategies could be:
- BRRR (Buy, Refurbish, Refinance, Rent)
- Commercial-to-Residential conversions
Both allow you to recycle your money so you can buy more properties using the same pot of capital.
Step 2: Decide Where You Will Invest
Once you choose your strategy, the next step is deciding where to invest.
Most people get stuck here and simply follow the crowd. I follow a different approach – the same approach many corporations use. I let data guide me.
I use platforms like:
- StreetCheck
- Nomis
To analyse demand for the strategy I’m using. I study demographics, household types, average salaries, rental demand and the volume of properties that match my investment criteria.
The data tells me where to invest.
Step 3: Learn Everything About Your Chosen Strategy
Once you know your strategy and your investment area, the next step is education. You must learn every detail about the strategy:
- How it works
- What risks to avoid
- How to structure your deals
- What tools and systems you need
The more you understand it, the more confidently you’ll execute. In property, mistakes are costly, so it is important to educate oneself.
Step 4: Learn How to Find Deals and Build Your Systems
The next step is learning how to source deals and what systems you need to execute them properly.
I use a method called The 3 Step Method, which helps me find and develop sites quickly and efficiently. This allows you to run projects smoothly and avoid wasting time on the wrong deals.
Step 5: Learn the Valuation System
This is one of the most important stages.
You must understand how to:
- Add value
- Prove the value you added
- Get the property to value at the number you need
- Recycle your capital effectively
You can execute all the previous steps perfectly, but if you get valuations wrong, you may leave too much money in the deal. This will slow down your ability to buy the next property – and eventually stop you from scaling.
Step 6: Build the Systems to Scale Your Portfolio
Finally, once everything is in place, you need systems that allow you to run multiple projects at the same time.
This means:
- Building a power team
- Putting processes in place
- Standardising how you run each project without you being involved.
If you rely on doing everything yourself, you will only complete one project a year. With the right systems, you can run multiple projects simultaneously and grow your portfolio much faster.
These Are the Steps You Need to Build and Scale Your Portfolio
If you want to see this system in more detail, you can watch the full breakdown on my YouTube channel and click here to see some people who have managed to build their portfolio much faster by using this process.
If you want our help building these systems and creating long-term wealth through property, you can schedule a call to join The Ultimate Investor®.
