Building a Multi-State Investment Portfolio
As commercial real estate investment properties have become a more popular investment asset in recent years, I have often encouraged my clients to consider building a multi-state investment portfolio. Stirling Properties holds real estate brokerage licenses in Louisiana, Texas, Mississippi, Alabama as well as Florida. I can tailor a real estate solution to suit your needs. Through years of experience I’ve developed a few tips to maximize your opportunities as a multi-state investor.
Conduct Market Research:
Not every market is the same, and market conditions can have a huge impact on the quality of your investment. State laws, demographics and economic trends play a role in making a market investment friendly, or not. For example, in Baton Rouge the population is young and growing, it offers a landlord friendly environment, unemployment numbers are low, the petrochemical and medical industries are booming, and tourism is steadily increasing. These factors make Baton Rouge a great market to target for investment properties.
Pick an Asset Type:
The general rule of thumb when it comes to investing is that a diversified portfolio is important, but when it comes to asset types I typically advise my clients to stick with one. If you want to invest in multifamily, diversify by selecting several different markets to target. Commercial real estate sectors are unique; for that reason, it is important to choose one and focus your energy on building the portfolio. Even within the multifamily sector, you can diversify by product type. There’s student housing, affordable housing, market-rate communities, single-family residential portfolios and senior living.
Develop an Investment Strategy:
Are you looking to make a quick buck and flip your assets, or is your strategy to have a long-term investment with a steady stream of income? The fix and flip trend has become popular in Baton Rouge in recent years and can result in a quick profit but does come with risks. Whichever approach you choose, you should apply it across all markets you invest in to streamline the process.
Your investment portfolio is extremely valuable, and it is my job to help you generate, maintain and maximize the profitability of these assets. If you are interested in expanding your investment portfolio to include assets across multiple states, I invite you to sit down with me to review your options.