If you’re interested in business or investing, you’ll know that there are some people who seem to be able to construct massive real estate portfolios. They buy a couple of properties and before you know it, they’re rolling in money. 

But how are they doing this? What’s their secret? Why is it that they’re able to make so much money so quickly? 

Well, the first bit of truth is that they don’t usually make the money quickly. However, their growth seems to compound, and they get richer every year. 

How are they doing it? 

Leveraging Other People’s Money (OPM)

Most of them start by using OPM. It’s a clever trick that allows them to boost their initial capital so they can start generating some real returns. 

Many use a DSCR loan. What is a DSCR loan? Good question. Essentially, it’s a type of loan that only looks at the income potential of the property you own, not your financial circumstances. It means that if you can own a building productively, the person making the loan is likely to give it to you. 

When you think about it, this makes sense. If tenants moving into a property could massively increase their income and easily pay the mortgage, why wouldn’t a lender make the loan? 

Using OPM is powerful because it avoids the need to dip into personal cash reserves. This approach massively reduces risk and allows real estate businesses to continue growing exponentially. 

Tapping Into Off-Market Deals

Another way to massively increase the size of your real estate portfolio is to tap into so-called off-market deals. These are deals that aren’t on the open market and may offer better terms. 

The way to learn about these deals is to build relationships with real estate agencies, developers, and local investors. They often have knowledge of properties for sale, even if they’re not on the open market. 

Tapping into off-market deals is pretty straightforward once you know how. However, you need teams of people in place first. 

Using Negotiation Tactics

You can also massively expand your real estate portfolio by using negotiation tactics. Motivated sellers are much more likely to want to get rid of their properties at a lower price, even if it means losing a bit of money at their end. 

For example, divorcees are often looking to get rid of houses quickly. So too are people who need to move for work. If there’s pressure on them to sell, you can sometimes get a lower price. 

Scaling Through A Partnership

If going it alone doesn’t sound like much fun, you could do it through a partnership. Growing with a team of investors is often a high-reward, lower-risk approach that doesn’t require you to do as much work. 

These partnerships bring capital and experience to the table. You can tap into the knowledge of the people you’re working with, leveraging their skills and abilities to help you own the properties you could only dream of buying under normal circumstances. 

So there you have it: the tricks for massively expanding your real estate portfolio.