Buy a portfolio or build my own?

[Sean Spagnola]

Hey Bigger pockets community

I have a full time career. I've been studying real estate investing for a solid year. I am constantly consuming content. Probably more than I need. I'm a serious over thinker! Honestly I have everything in place to get myself started. But here I sit without my first property still(I've viewed many)

So another recent question I have asked myself. I had planned to slowly build an investment portfolio on my own. Buying one property or so every year or couple years.

But I recently thought. If I could deploy the same amount of up front cost to purchase an up and running portfolio.

My calculations tell me that I can be cash flowing much more if I spend the money on a portfolio or complex. Versus me purchasing each home on it own. And slowly building over many years.

Reminds of the old saying "You have to spend money, to make money"

I know I lack alot of details here. But anyone have any thought?

[Kevin Sobilo]

@Sean Spagnola, a few thoughts:

1. Building a portfolio allows you to gain experience, develop systems, develop your own approach to managing properties etc. Buying a portfolio without experience just throws you in the deep end without the ability to learn and develop these things.

2. Estimates and projections are great, but experience gives you the real numbers! Whatever you estimate a deal to be, isn't what it will be. When you buy a property at a time, the risk from the uncertainty is small. If you buy a whole portfolio and your projections are off then you are potentially in trouble.

3. Buying a portfolio might lead you to making decisions you don't have the experience and foresight to make well.

For example, you might choose to take a blanket mortgage covering all properties, BUT perhaps the market softens and later you wish to sell a property. You may not be able to easily separate that property from the loan to make that happen.

4. Building let's you figure out what role you want in the venture because the scale is small, but buying a portfolio gives you no time and experience to figure that out.