Credibility builds trust, the same way how investors choose Dubai real estate agencies to partner with in making sure they meet their goals. Whether buying properties in Bluewaters apartments or other new projects by Meraas, you can see how hard these companies have been working in the industry to maintain a successful portfolio.
A real estate portfolio is a compilation of financial assets like bonds, stock, cash equivalents, their fund counterparts, as well as exchange-traded, mutual, and closed funds. These portfolios are held by investors and are managed by financial professionals. These portfolios also represent how an entrepreneur has allocated funds into physical properties and even REIT portfolios (Real Estate Investment Trust). In other words, it is like a resume or somehow a comprehensive and detailed compilation of previous and existing deals, a transparency of effectiveness as well.
With this being said, having a great real estate portfolio increases your selling potential and instates your credibility in the industry. There are 3 pillars we can look in to - finance, property and risk, and comfort.
These pillars make a successful portfolio and it is important to know how they play a big impact in the real estate world.
1: FINANCE IN REAL ESTATE
Finance is about how a property can possibly earn or how a property can be an investment at the same time. The most traditional form of real estate finance is lending or borrowing against the cash flow generated by a certain property. This means when a borrower loans, he or she pays the loan using the rental income of his or her property, but at a higher rate.
This is the commonly used structure for investing in the real estate industry. Finance transactions in real estate can be classified as development or investment transactions, which earn or accumulate money at the end of the day.
2: PROPERTY AND RISK IN REAL ESTATE
It is very satisfying to help people with their decisions such as buying, selling, renting a home or an investment property. Property is the heart of real estate and is the greatest factor in which a successful deal or transaction on property can help you on your portfolio.
Usually agents, manage, lease, value, buy and sell properties on behalf of their clients. So doing your job well will add more things to showcase on your portfolio.
The next thing is about how daring you are to place clients on riskier but rewarding returns or on a safer but consistent returns. Buyers are diverse, as well as their investor types. Knowing your risk tolerance will gauge what kind of deals you will close in the coming years.
Closing deals and transactions mean your clients get to finally have the grasp on their purchased properties. But it doesn't always end here. The so called 'after sales' feedback could also affect your portfolio. This could be the ability to address concerns just after closing the sale, reassessing payment details, and many more. The more clients are comfortable of the after care, the more records will prove your hardwork.
Real estate portfolios vary from one another and there is no such thing as a 'same' portfolio. Knowing the impact of the 3 pillars will help you think ways of how to close deals and arrange investment settings for every property you offer.