If everything goes to plan, the properties you purchase will appreciate over time, and you can use the equity as security to make more significant investments that could be far more profitable than the initial outlay. Later, we will explore how an investor can use the equity in their occupied home to fund further investments. Better yet, those who build up a diverse and extensive property portfolio will often use a variety of approaches to source capital.

We will outline some of these strategies throughout the following sections and offer our advice to give you the best possible start. It is always worth considering that investors should be cautious with how much debt they take on as their real estate portfolio grows. Regardless of how much opportunity there seems to be, the property market can be volatile, and properties can go through a downturn, which could cause you a variety of issues. Alongside the fact that real estate is not liquid, we will talk more about this in a later chapter.

Most investors will need access to borrowed funds. This may sound like a downside, but consider that borrowed money has given countless investors the chance to make a fortune in real estate. Also, remember that debt against investment is good debt.