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What would a balanced real estate portfolio look like?

Following are the 5 parts to a balanced real estate portfolio. Safety, Solvency, Liquidity, Reserves, Leadership.

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What would a balanced real estate portfolio look like?

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  1. WHAT WOULD A BALANCED REAL ESTATE PORTFOLIO LOOK LIKE?

  2. Following are the 5 parts to a balanced real estate portfolio • Safety • Solvency • Liquidity • Reserves • Leadership

  3. Safety • Different asset types such as some multiple units and some single units • Different locations such as different cities or states with high demand and steady growth in population as well as scarcity of potential new competition of new buildings

  4. Solvency • Low to no debt obligation (low LTV) • If debt, then well-structured in both the low amount owed and the terms over time (non-recourse) • High reliable Income against all expenses (high DSCR)

  5. Liquidity • Locations that make it easy to resell if needed (based on demand) • Credit lines against properties to access cash through borrowing at low rates in case of a cash crunch

  6. Reserves • Having cash reserves equal to one-year payments on the side in case market drops in various locations simultaneously and resale gets delayed • Having a reserve of back up investors interested to be involved in transactions at reasonable terms in case of a cash crunch

  7. Leadership • Having the right team members in place (intelligent, ethical, energetic and committed) • Providing the right incentives and rewards as well as feedback and penalties • Supervising the progress of each project and property and getting the proper accurate reporting as frequently as needed

  8. Contact Us Address: 121 S Orange Ave, Orlando, FL 32801, United States Phone: 8447201031 Website: https://www.cherifmedawar.com/

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