Each time I deliver a presentation at an event there is always someone who asks, ‘So, how big is your portfolio?’.

I don’t actually answer this question for two reasons.

I don’t see how knowing the size of my portfolio helps you build your own property portfolio
I don’t believe it is a very relevant question or a measure of anyones success
Do you consider an investor with 100 properties more successful than someone with 10? Well, many would say that obviously the investor with 100 properties is more successful.

What if the person with 100 properties is making £100 positive cash flow on each property while the person with 10 properties is making as much as £1000 positive cash flow from each property? In this scenario who would you consider more successful?

Too many people get pre-occupied or easiliy impressed by the number of properties someone has. However, what is important is how much cash flow or profit you can extract from your portfolio, not how big it is. Surely it is better and much less hassle to have fewer high cash flow generating properties than lots of properties producing peanuts?

Many people see property as a way of providing for a pension in later years. If this is your objective then buying property which generates wafer-thin cash flow fits in with your objective because you are looking for your returns over the long term.

I don’t believe you have to wait to be a pensioner before you can enjoy the fruits of your property portfolio. By buying properties which generate significant monthly positive cash flow you can, you can use your portfolio to generate income for today and a pension for tomorrow.

My Property Investment System is all about how to build a portfolio of cash flow generating properties to provide income today. I am living proof that the system works. I have been investing in property for 15 years. I used to be a Management Consultant and in 2001 I left that profession to become a full-time property investor. My family lives on the positive cash flow from rental properties.

Remember, there are many people in property world who say, ‘yesterday I was flipping burgers in a burger bar, today I am a successful full-time property investor’. Quite frankly, this does’t impress me much. Anyone can buy property with the objective of producing enough income to replace the salary paid by a burger bar! My story is different. I was in a professional, well paid, enjoyable career. This meant that if I was to pursue property as a full-time option, then the returns would have to be significantly better than the career I was already in. Thats why my Property Investment System focusses on building a portfolio of properties which generate significant positive cash flow.

This entry was posted on Saturday, December 29th, 2007 at 8:24 pm and is filed under Frequently Asked Questions. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.