You can build a West Hollywood real estate portfolio just like any other business. This is something that needs to be done to show finance companies that you are a good credit risk. You may need to generate positive cash flow and sometimes the only way to do that is with a loan, remember leverage is the key to wealth. Having a good business portfolio shows that you are serious about your business, it will take discipline and hard work, but you will get the results in the end.
You don’t need much to start building a portfolio of West Hollywood real estate, condos, single-family duplexes, quads, or even land. There are lots of land, vacant lots, in areas where new developments are going up. This may only seem like a small investment. The day will come when someone wants that vacant lot and offers to buy it. The land has a value.
To increase the value, you can rezone your lot. A residential lot for single-family homes can be worth quite a bit. Zoning a large lot for multifamily housing can increase property value, especially if the area is growing. When a property can be zoned for dual purpose, it makes it more attractive to developers, their job is to find and purchase these overlooked properties.
Using the vacant land in your real estate portfolio as collateral for a loan will allow you to boost your real estate investments. You may not think that these little pieces of land can mean a lot. The lender may appraise properties to determine value. You may be surprised to discover that just 2 vacant lots in the right district can generate a portfolio worth $200,000. That is a substantial amount of money when it comes to getting a loan.
As you learn about the real estate market you’re dealing with, condos, single-family homes, you’ll want to check with the area’s regional planning board. You may find plans to implement a development in 5 or even 10 years. This is the area where you will want to buy the available vacant lots. There will come a time when these lots can more than double in value because a developer needs them to start or even finish a project. Building a real estate portfolio is easier than you think just by using vacant land.
Rental properties also have value. There are plenty of distressed homes in West Hollywood that an investor can buy for pennies on the dollar. Repairing and renting them can generate positive cash flow almost immediately. This looks good in any real estate portfolio. You may even consider getting your rental unit approved for housing by HUD. Income is guaranteed. When you have a guaranteed income, lenders tend to favor you more.