Almost everyone wants to have financial freedom as early as they can. Almost everyone wants an easier and faster way, that includes building a real estate portfolio. But how? What are the steps needed to build a real estate portfolio?
Most people build their real estate portfolio or their wealth the slow way. The slow way is done by buying a house, then another and after a few years, buy another one. There is nothing wrong with that process. It’s just that, it is really slow. If you want faster growth, then you need to grow exponentially – and that is by using stack.
What is STACK?
Stack method is done initially by buying a single house. Yes, start by buying one house. Buying your first property requires lots of work, but will not get you to freedom. However, you will gain experience and knowledge from this first deal.
The Steps to Take
After knowing the process of buying a single deal, you can now buy two units, either a duplex or two single-family houses. You can do this after a year of your first purchase. On your second year, you already have a single family and a duplex.
So the next year, in order to exponentially grow, you need to double down again. On your third year, buy another four units. Then for the coming year, buy another eight and then the next year another 16 units. That’s how the stack strategy works. You grow exponentially. You’re adding knowledge and experience every year.
The point here is, when you grow exponentially, you’re building your portfolio fast. You will not be able to own thousands or even hundreds of units by buying one unit per year. The interesting thing about the stack strategy is that you start small, meaning you only have very little risk at the beginning. As you grow exponentially, your knowledge and experience grow too. This means your portfolio will grow too.
If you’re wondering about the funds, there are several ways to finance the stack method. But the best financing strategy for the stack method is the BRRRR investing.
This means you will:
- B – buy an upper fixer
- R – rehab it
- R – rent it out
- R – refinance it
- R – repeat the whole process
Building your own portfolio requires hard work, experience and knowledge. It depends on you if you want to build it in a slow or fast way. It will only work if you work hard for it.
The STACK method is used by Brandon Turner who is an active real estate investor, third-person speaker, husband, entrepreneur, traveler, and author of “The Book on Investing in Real Estate with No (and Low) Money Down“, and “The Book on Rental Property Investing”.
How do you plan to build your portfolio? How are you going to start real estate investing?
If you need more tips and information, especially about real estate and investment, you can call Rajanikanth Maddhi at 720 5151051 for professional assistance.