Many people think that they have to start with a small property and work up to a big property. While this may not be a bad strategy, many people become successful investors by doing just that.
Many people feel that they cannot qualify for a loan when it comes to larger properties. It is actually much harder to purchase a smaller property, that it is a larger property. Let me explain why. A smaller property (like a single-family house or a condominium), is often secured by your personal assets. Because the property is smaller, the banks will often look for liquid cash assets, so it doesn't matter how many real estate assets or properties you own. With larger investment properties, banks often look to the property itself and the revenue it generates as the asset. The lesson here is that larger investment properties, are secured by the asset itself because their values are based on performance, and everyone is primarily looking to the property to pay them back through its operations.
Sound property management is the primary way to increase the value of an investment property. Get a property manager who knows what she's doing, and your asset will grow. Get a property manager who doesn't know what they're doing, and you will ultimately suffer the loss, not the manager.
With larger properties, this allows you the ability to increase property's value through operations. This is a huge advantage that larger properties have over smaller properties. With smaller investments, (like single-family houses, villas, and condominiums), the appreciation of the property is based solely on the appreciation of external forces around you (management, maintenance, landscaping). If you do your homework, the appreciation will generally be steady, but ultimately how much this property will appreciate is out of your control. With smaller investment properties (this fact remains), you are not in control of creating the value for the property, the market is.
With larger investment properties, this is just the opposite. You are in complete control of how well your property performs operationally, and thus how much it will appreciate. With larger properties, you can afford to hire a professional property management company to oversee the operations, whereas with smaller properties you often have to do much of the management yourself.
Whether you are looking to buy a smaller investment property or a larger one, this is where I come in. I can assist you in looking for those great deals, while you oversee the management and operations of your existing portfolio.