What exactly is a Portfolio?

2 Replies

I've been investing in Real Estate for about eight years. I started with one home during the collapse while I was in the service. When I got out I started expanding my rental base one at a time. I now have 5 properties. I know the term "Portfolio" is a group of properties (or any other type of investments), but is there a specific definition? How does one create a portfolio. 

Basically what I'm asking is this: Do I sell all my properties in one LLC, making it one transaction, or do I sell/buy several deeds in one closing/multiple closings? If I combine three into one LLC's sale, how do we report sales prices to each property? How will it affect the values of my real estate two blocks down?

@Sean Tabor - You have a portfolio, it is just a group of properties.

As far as selling, you can sell all of them at once even if they have different LLC's - as each one has it's own title it is no different than selling them off individually. It would just be 5 individual contracts all set to close the same day because each has their own deed.

Brie Schmidt, Real Estate Agent in Wisconsin (#57846-90) and Illinois (#471.018287)

@Sean Tabor Unless you happen to own the entire block or entire set of similar properties in your area, I would not worry about one sale affecting another property two blocks down. This assumes you are in an area where there is an active real estate market. If you're in a staid market you might want to consider selling your package in one-go and investing the proceeds in a growing market.

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