705: Portfolio Architecture 101: The 5 Keys to Building a Financial FORTRESS (Part 1) 59:50

    <p>You may know <a href="https://www.biggerpockets.com/blog/build-real-estate-portfolio-fast-the-stack"><strong>how to build a real estate portfolio</strong></a>, but how do you build an unshakeable one? Most real estate investors think that <strong>buying a few dozen dirt-cheap houses</strong> is all they need to do to make millions and <strong>live a life full of passive income</strong>. <strong>This is far from reality</strong>, as <strong>your entire </strong><a href="https://www.biggerpockets.com/glossary/net-worth"><strong>net worth</strong></a><strong> could come crashing down</strong> 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 <strong>grow your wealth even during the worst of economic times</strong>?</p><p>David Greene has touched on this topic numerous times, often referring to “<strong>portfolio architecture</strong>” as one of the most crucial aspects of building wealth through real estate. This strategy not only <strong>helps you </strong><a href="https://www.biggerpockets.com/blog/number-1-wealth-building-strategy-everyone-should-do"><strong>grow wealth</strong></a> but <strong>keep it even when everything goes wrong</strong>. Don’t believe us? Listen to David and Rob’s individual stories on what happened to their portfolios during the <strong>2020 lockdowns</strong> and how quickly they bounced back while other investors had to completely rebuild.</p><p>In part one of this two-part podcast, David and Rob will go through the <strong>most common weaknesses </strong>in their<strong> real estate portfolios</strong>, what could cause everything to come crashing down, and the <strong>five most important keys to portfolio architecture</strong>. They also talk about diversification and how having just one type of real estate in one location could be a <strong>huge mistake</strong>.</p><p><strong>In This Episode We Cover:</strong></p><p><strong>Why </strong><a href="https://www.biggerpockets.com/blog/cash-flow"><strong>cash flow</strong></a><strong> isn’t </strong>as <strong>reliable </strong>as most investors think and why you CAN’T depend on it</p><p>The few things that could completely<strong> destroy your real estate portfolio </strong></p><p>Liquidity and<strong> how much cash to have on hand/</strong>ready to deploy when things go wrong</p><p>Why all real estate investors should <strong>strive to be “broke millionaires”</strong></p><p><a href="https://www.biggerpockets.com/blog/buy-and-hold-diversification"><strong>Real estate diversification</strong></a> and why you want to own rentals in more than one market</p><p>The<strong> five factors of portfolio architecture </strong>that EVERY investor must pay attention to</p><p>And <strong>So </strong>Much More!</p><p><strong>Links from the Show</strong></p><p><a href="https://www.biggerpockets.com/agent/match">Find an Investor-Friendly Real Estate Agent</a></p><p><a href="https://www.youtube.com/channel/UCVWDbXqQ8cupuVpotWNt2eg">BiggerPockets Youtube Channel</a></p><p><a href="https://www.biggerpockets.com/forums">BiggerPockets Forums</a></p><p><a href="https://www.biggerpockets.com/membership-types">BiggerPockets Pro Membership</a></p><p><a href="https://store.biggerpockets.com/">BiggerPockets Bookstore</a></p><p><a href="https://www.biggerpockets.com/blog/real-estate-investing-bootcamps">BiggerPockets Bootcamps</a></p><p><a href="https://www.biggerpockets.com/podcast">BiggerPockets Podcast</a></p><p><a href="https://bit.ly/biggerpocketsswag">BiggerPockets Merch</a></p><p><a href="https://www.biggerpockets.com/podcasts?utm_source=youtube&amp;utm_medium=description&amp;utm_campaign=none">Listen to All Your Favorite BiggerPockets Podcasts in One Place</a></p><p><a href="https://www.biggerpockets.com/podcasts?utm_source=youtube&amp;utm_medium=description&amp;utm_campaign=none">Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts</a></p><p><a href="https://www.biggerpockets.com/investment-calculators?utm_source=youtube&amp;utm_medium=description&amp;utm_campaign=none">Get More Deals Done with The BiggerPockets Investing Tools</a></p><p><a href="https://www.biggerpockets.com/forums/521-real-estate-events-meetups?utm_source=youtube&amp;utm_medium=description&amp;utm_campaign=none">Find a BiggerPockets Real Estate Meetup in Your Area</a></p><p><a href="https://www.biggerpockets.com/users/davidgreene24?utm_source=youtube&amp;utm_medium=description&amp;utm_campaign=none">David's BiggerPockets Profile</a></p><p><a href="https://www.instagram.com/davidgreene24/">David's Instagram</a></p><p><a href="https://www.youtube.com/c/DavidGreeneRealEstate">David’s YouTube Channel</a></p><p><a href="https://www.biggerpockets.com/users/robuilt?utm_source=youtube&amp;utm_medium=description&amp;utm_campaign=none">Rob's BiggerPockets Profile</a></p><p><a href="https://www.youtube.com/c/Robuilt">Rob's YouTube</a></p><p><a href="https://www.instagram.com/robuilt/">Rob's Instagram</a></p><p><a href="https://www.tiktok.com/@robuilto">Rob's TikTok</a></p><p><a href="https://www.twitter.com/robuiltchannel">Rob's Twitter</a></p><p><a href="https://www.biggerpockets.com/blog/buy-and-hold-diversification?utm_source=youtube&amp;utm_medium=description&amp;utm_campaign=none">Buy-and-Hold Investors—Don’t Forget to Diversify</a></p><p><a href="https://www.biggerpockets.com/blog/is-the-housing-market-about-to-collapse?utm_source=youtube&amp;utm_medium=description&amp;utm_campaign=none">Is The Housing Market About to Collapse?</a></p><p><a href="https://www.biggerpockets.com/blog/how-to-build-rental-portfolio-that-nets-10k-month?utm_source=youtube&amp;utm_medium=description&amp;utm_campaign=none">How to Build a Rental Portfolio That Nets $10K a Month</a></p><p><a href="https://www.biggerpockets.com/blog/balance-seasonality-vacation-rentals?utm_source=youtube&amp;utm_medium=description&amp;utm_campaign=none">4 Tips to Balance Out the Highly Seasonal Nature of Vacation Rentals</a></p><p><br></p><p>Click here to check the full show notes: https://www.biggerpockets.com/blog/real-estate-705</p><p><em>Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Check out our </em><a href="https://www.biggerpockets.com/blog/sponsors"><em>sponsor page</em></a><em>!</em></p>
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