You may know how to build a real estate portfolio, but how do you build an unshakeable one? Most real estate investors think that buying a few dozen dirt-cheap houses is all they need to do to make millions and live a life full of passive income. This is far from reality, as your entire net worth could come crashing down as soon as a housing market crash, correction, or new rental policy comes into play. So how do you build a sustainable real estate portfolio—one that will grow your wealth even during the worst of economic times?
David Greene has touched on this topic numerous times, often referring to “portfolio architecture” as one of the most crucial aspects of building wealth through real estate. This strategy not only helps you grow wealth but keep it even when everything goes wrong. Don’t believe us? Listen to David and Rob’s individual stories on what happened to their portfolios during the 2020 lockdowns and how quickly they bounced back while other investors had to completely rebuild.
In part one of this two-part podcast, David and Rob will go through the most common weaknesses in their real estate portfolios, what could cause everything to come crashing down, and the five most important keys to portfolio architecture. They also talk about diversification and how having just one type of real estate in one location could be a huge mistake.
00:00 Intro
02:18 Quick Tip
03:11 The Broke Millionaire
14:51 Doomsday Scenarios
29:39 How Much Cash to Keep?
37:41 Diversifying Your Portfolio
46:29 5 Pillars of Portfolio Architecture
51:47 Stick Around for Part 2!
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Buy-and-Hold Investors—Don’t Forget to Diversify:
https://www.biggerpockets.com/blog/buy-and-hold-diversification?utm_source=youtube&utm_medium=description&utm_campaign=none
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Is The Housing Market About to Collapse?
https://www.biggerpockets.com/blog/is-the-housing-market-about-to-collapse?utm_source=youtube&utm_medium=description&utm_campaign=none
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How to Build a Rental Portfolio That Nets $10K a Month:
https://www.biggerpockets.com/blog/how-to-build-rental-portfolio-that-nets-10k-month?utm_source=youtube&utm_medium=description&utm_campaign=none
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4 Tips to Balance Out the Highly Seasonal Nature of Vacation Rentals:
https://www.biggerpockets.com/blog/balance-seasonality-vacation-rentals?utm_source=youtube&utm_medium=description&utm_campaign=none
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Connect with Rob (Robuilt) on YouTube, Instagram, TikTok, and Twitter:
YouTube: https://www.youtube.com/c/Robuilt
Instagram: https://www.instagram.com/robuilt/
TikTok: https://www.tiktok.com/@robuilto
Twitter: https://www.twitter.com/robuiltchannel
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Connect with David and Rob on BiggerPockets:
David: https://www.biggerpockets.com/users/davidgreene24?utm_source=youtube&utm_medium=description&utm_campaign=none
Rob: https://www.biggerpockets.com/users/robuilt?utm_source=youtube&utm_medium=description&utm_campaign=none
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Follow David and BiggerPockets on Instagram:
@davidgreene24 or https://www.instagram.com/davidgreene24/
@biggerpockets or https://www.instagram.com/biggerpockets/
Episode 705
Show notes at: https://www.biggerpockets.com/blog/real-estate-705?utm_source=youtube&utm_medium=description&utm_campaign=none
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