Despite the COVID Pandemic that marred 2020 and the first half of 2021, the housing market in the Walnut Creek area has remained a relative economic bright spot. The available inventory on the market is fairly limited due to the combination of continued low interest rates and the demand for property in this prestigious area. Homes are often selling in close to a record amount of time. Even with all of the challenges of a competitive marketplace, investing in real estate is still one of the safest and most efficient ways to build wealth. PMI Contra Costa has been an expert on Walnut Creek houses for rent and property management Walnut Creek California. The following methods are proven ways to help grow your portfolio in the current market conditions.
1. Get in the game
You cannot grow your real estate portfolio until you have one. That said, it is imperative that you don’t make a rushed decision on a specific opportunity to purchase a property just to say you have begun. The purchase of your first property can be a springboard to tremendous success – or become a major roadblock in the progression of your investment portfolio. We recommend you look in communities where improvement is already occurring. Areas that are already in prime condition don’t see very rapid change in value, while areas that are declining will likely continue to do so for the foreseeable future. Regardless of how well the purchase and subsequent resale of the property go, your first transaction will always be a valuable learning experience.
2. The concept of leverage
When you buy a property for one price and subsequently make the necessary improvements to the property to increase its valuation, the difference between the new market value of the home and the price you paid is called equity. There are a few potential ways for you to gain access to that equity. You can sell the property to take the equity out as profit. Additionally, you can borrow against it with a home equity line of credit. Whichever method suits your present situation best, a smart next move is to leverage that money into another property or properties.Be certain you don’t overextend yourself from a leverage perspective by getting into more debt than your cash flow can cover the monthly payments for.
3. Work smarter instead of harder
It isn’t always an easy task to uncover undervalued properties that you can quickly turn a profit on. But there are veritable goldmines throughout the Walnut Creek region. There are numerous web-based tools, apps and software systems that can help alert you when a potentially undervalued property becomes available. It can also be extremely beneficial to consult with people who have inside information on the market.
4. Find properties before they are listed on the local Multiple Listing Service (MLS)
By networking into the world of San Ramon property management, you set yourself up to be privy to certain information prior to other investors or prospective homebuyers. Property managers oftentimes will know if a specific property is going to go up for sale long before it is actually listed. Their clients are often property owners and landlords, and property managers strive to be a resource for them in a variety of ways. If a client expresses that they are considering selling a specific property, the property manager can offer to tap into their network of investors, professional connections and other people they are aware of who are considering purchasing property in the local area.
By utilizing these four methods, you can begin to build a solid portfolio with a strong foundation. Be sure to watch for a future PMI blog post where we will cover the next four proven methods to ensure your real estate portfolio continues on its positive trajectory of growth.
