Source: Forbes —
If you’re not currently a homeowner or haven’t purchased your first multi-residential property, you may still have hopes of building a multi-million or billion-dollar real estate portfolio. Yet that goal appears to be far-fetched amid a global pandemic, while scores of people are losing their jobs and our economy sinks knee-deep into a recession.
As someone whose $40 million real estate portfolio was built on the opportunities provided by a recession, and whose purchasing power for new acquisitions have increased by 50% as a result of our current situation, I can attest that sweeping your hopes and dreams under the rug right now will be one of your biggest mistakes. That’s especially true for first-time homebuyers or someone looking for a new primary home. Laying the foundation of this soon-to-be empire can begin with as little as $12,500.
At the same time, it’s important to be realistic and lower any expectations with respect to the asset class. The first property you purchase will not be a fancy new house, often referred to as Class A/B. You may have some wiggle room with asset class as your portfolio grows, just not initially because your growth potential is largely based on the property’s capacity to be rehabilitated, re-evaluated and then refinanced in the near future.