BiggerPockets Real Estate Podcast

705: Portfolio Architecture 101: The 5 Keys to Building a Financial FORTRESS (Part 1)


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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.

In This Episode We Cover:

Why cash flow isn’t as reliable as most investors think and why you CAN’T depend on it

The few things that could completely destroy your real estate portfolio 

Liquidity and how much cash to have on hand/ready to deploy when things go wrong

Why all real estate investors should strive to be “broke millionaires”

Real estate diversification and why you want to own rentals in more than one market

The five factors of portfolio architecture that EVERY investor must pay attention to

And So Much More!

Links from the Show

Find an Investor-Friendly Real Estate Agent

BiggerPockets Youtube Channel

BiggerPockets Forums

BiggerPockets Pro Membership

BiggerPockets Bookstore

BiggerPockets Bootcamps

BiggerPockets Podcast

BiggerPockets Merch

Listen to All Your Favorite BiggerPockets Podcasts in One Place

Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts

Get More Deals Done with The BiggerPockets Investing Tools

Find a BiggerPockets Real Estate Meetup in Your Area

David's BiggerPockets Profile

David's Instagram

David’s YouTube Channel

Rob's BiggerPockets Profile

Rob's YouTube

Rob's Instagram

Rob's TikTok

Rob's Twitter

Buy-and-Hold Investors—Don’t Forget to Diversify

Is The Housing Market About to Collapse?

How to Build a Rental Portfolio That Nets $10K a Month

4 Tips to Balance Out the Highly Seasonal Nature of Vacation Rentals


Click here to check the full show notes: https://www.biggerpockets.com/blog/real-estate-705

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