Sustainable wealth is built upon a foundation of real estate investments in the Seattle area that are held long term for the sake of your financial future. The more assets, the merrier—although the workload can quickly get extensive.
With the help of a Seattle property management company, it’s possible to expand your real estate portfolio almost exponentially! Read on to find out how to get started growing a portfolio of home rentals Seattle investors can fall back on as a reliable form of income.
Build-in Some Legal Protection
You’re not selling lemonade at the side of the road here; lawsuits are a real threat to you. That’s why you need to have a formal business structure to separate your business from your assets.
You have a few different options to choose from here, but regardless of what you choose, it's best to pick your business entity before you ever purchase a property!
Say someone falls down the stairs in your property, and they want to sue.
- Rather than having your assets involved in the court’s reward for the lawsuit, your business entity takes the heat instead.
- You might think that such lawsuits are rare, but you need to be prepared for anything.
- Yes, all business involves risk—but you’re better off keeping your risks calculated: the more weak spots you have, the higher your chances of jeopardizing profitability.
Some property owners opt to place each rental property under the umbrella of a separate entity (like an LLC) to shelter the others in their portfolio from danger. You can have as many LLCs as you’d like; it’s perfectly normal and absolutely legal. That said, it would benefit you greatly as the property owner to already have a trusted attorney on hand to guide you through the process.
Growth involves caution: No matter what investment you make, security has to be a priority—otherwise, you won’t have a business to run! Get familiar with your options as far as entities go before you ever purchase a property, and your investment portfolio will be a breeze.
Investigate the Fine Print
Once you’ve convinced yourself that real estate is the best investment you can make, you’ve got to dive into the details before you ever pick your first rental property. It’s far easier navigating the Seattle-area rental market when you know a thing or two about it. This includes gaining some insight into your (potential) competition.
This kind of research not only paves the way for the selection of your first (or next) investment property, it also helps you price your single-family homes and condos according to what our market in the Seattle area will bear. Look into things like the location of your potential properties, amenities nearby, what your competition is charging, and what the property potentially offers to renters.
Don't worry about being overwhelmed by the data, either; if you need assistance running the numbers, you can always reach out to a reliable, full-service property management company to help you get where you need to go.
Easy Does It
You want to start out with a property that isn’t a black hole for available funds. You know those properties that seem like they just need 'a little more support' to reach their full potential? Dodge these potential lemons and start with a sure-fire winner before you think you can tackle a project that requires some serious elbow grease—and a cash infusion.
Establishing a steady flow of income before you even think about investing in your next project will create stability for your future investments! Mistakes are part of the territory, but you can add some much-needed security to your early portfolio by sticking with properties that will be proven performers.
Turnkey rentals are a great example of this—and they often come with a renter and property management services already established and ready to go.
When your first property consistently makes good money, then you can start to think about seeking new deals.
It's Time for a Team
Your real estate portfolio’s success will depend on how well it’s handled; this isn’t some weed that grows regardless of your care! Acquiring the right tools in the form of professional help from a Seattle property management company will guarantee that your investments yield the highest profit.
The rental property business is still a business: if management is poor, then performance is likely to be poor—meaning less money and more problems. It’s only natural; owning successful rental properties requires the capacity to successfully navigate everything from rent collection to maintenance and repairs.
There's no better way to tackle maintenance issues than with the right repair professional—and there's no better way to successfully run a rental property than with the right property manager.
Get Into It
You don’t need to have ‘been there and done that’ to grow your real estate investment portfolio! Have a clear business plan for your property, laying out your objectives and strategies, and know your numbers.
Of course, planning and the subsequent execution of said plan always works out for the better if you work with a professional team! Learn more when you download your free copy of our resource, Real Estate Investing: Grow Your Portfolio.