INVESTING
the municipality ’ s valuations that affect rates and taxes . You can also look at reducing or eliminating rental commissions .
When you manage your property portfolio well , it goes a long way to increasing cash flow . Read the article , 5 Ways to Manage your Rental Property Portfolio Better for more ideas .
03
Restructure your debt
Restructuring your debt is a great way to improve your cash flow . The goal with restructuring is to increase your term ( reducing monthly payments ), decrease interest rates ( also reducing monthly payments ), or make additional cash reserves available ( thus having cash available to subsidise shortfalls ). By restructuring your debt , you are either doing a bond switch to another bank , restructuring with the existing bank , or simply refinancing .
To learn more about the restructuring options available , check out our article , To
Restructure or Not to Restructure your Property Portfolio .
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05
Get a partner in
You may not be able to afford to own this property portfolio by yourself . If this is the case , have you considered bringing in a partner who can assist with cash reserves in the form of a loan or equity ?
Personally , I ’ d rather own 50 % of a property portfolio than lose 100 % of a property portfolio because I could not manage the shortfalls . How about you ?
Sell some properties
Lastly , you could sell some of your properties . I intentionally left this option as a last resort because I don ’ t believe in selling off properties . But again , I would rather have a smaller portfolio than no portfolio at all . Sometimes selling is the best or only option you have .
Beware , you do not want to become a desperate seller who will sell at any cost to survive . It
39 APRIL / MAY 2023 SA Real Estate Investor Magazine