There are some investors who are passionate about accumulating as many properties as they possibly can in the shortest possible time. It is important to understand that this approach to property investing doesn’t suit everyone and that it not only takes more skill, but a higher risk appetite and higher income to sustain this approach.
So one of the biggest challenges that I think a lot of investors grapple with whether you’re very seasoned or you’re just starting out is how aggressively do you pursue the accumulation of properties when you’re building a portfolio.
Now some people are where they’re very little fear and a good understanding they are in a position where they can actually aggressively pursue building a solid portfolio in a very short space of time. So the average Joe investor who’s relatively new to the world of investing something like that could be complete freak out material.
So you want to really make sure that you not only take the time to understand how this property investing work but also what is your relationship to risk when it comes to property and what styles of investment and strategies are actually going to be a good fit for you, because certainly you know I was talking to someone just recently who is a very well-versed aggressive property investor and they are accumulating at the rate of not so they’re accumulating multiple properties each and every year they’re constantly looking for ways to squeeze money out of their existing portfolio so that they can continue to buy and they are carrying a very solid portfolio.
Now that sort of portfolio requires someone who’s got a lot of time and energy to commit to not only their knowledge and understanding of the market but also really monitoring and recording what is going on with each of their assets. What I would say to you is that it’s really important to understand that being an aggressive investor might look glamorous and exciting from the outside but may not necessarily be a good fit for you. What’s really important is for you to have your sleep at night factor and a good understanding on the implication of each investment and what that’s going to do to both your borrowing situation, the level of debt you’re carrying, and the relative income stream.
So if you need any advice on maybe how to qualify your risk profile how your borrowing capacity should be kind of measured out in terms of timeline then please get in touch, Salina Kulkarni from Phoenix Wealth Group..