How to Build a Real Estate Portfolio From Scratch in 2025

 If you're ready to start building a real estate portfolio from the ground up, I’m here to walk you through exactly what you need to do in the coming months to prepare. This step-by-step guide will help you scale your portfolio effectively, whether you’re looking to retire early or simply grow your wealth through property.

Let’s dive in!

Starting From Scratch

Before we get into the nuts and bolts of property investing, let me quickly introduce myself. I run one of the fastest-growing buyer’s agencies in the country, employing nearly 50 full-time staff. We’re involved in the property market 24/7, purchasing 20 to 25 properties every single week.

I mention this because, as a buyer’s agent, I want you to know I’ve got real-world experience and can show you the proven steps to scale your portfolio, whether you’re starting with zero or looking to add your first few properties.

The good news is that if you’re starting early, you could retire much sooner than most people expect. But don’t worry if you’ve only bought a home and haven’t yet started investing. I specialize in helping people go from owning one property to five, or from zero to 10–15 properties. If you need help, feel free to book a free discovery call with my Search Property team.

Now, let’s get into the four key pillars you need before you start purchasing property.

4 Key Pillars for Building a Real Estate Portfolio

1. Deposit

There’s a lot of talk in the media about needing 10 years to save for a deposit, but the reality is quite different. In fact, I’m often surprised by how many people think they need 20% for a deposit, when today, you can get into the market with as little as a 2% deposit, depending on your circumstances.

On average, most people are purchasing investment properties with a 10-12% deposit, which means you can start building your portfolio much sooner than you may have thought.

If you're living in a high-cost area like Sydney and aiming for a $1.5 million property, 10-12% still means a hefty deposit. But here’s the trick: consider properties outside of expensive areas. Regional cities or smaller capital cities offer great opportunities, with properties available for around $600,000. I recently bought a four-bedroom house for $600,000 in an area I expect to see strong growth.

For a property priced at $400,000, your deposit would be around 10%, so you’d need around $80,000 to $90,000 for the full purchase, including all additional costs like stamp duty and fees. You might be surprised to learn that this is more achievable than you think, especially if you’re currently renting and adopting a "rentvesting" strategy.

I personally still rent, but my portfolio is generating more than enough income to cover it. Rentvesting is all about using your money efficiently, putting emotions aside, and focusing on long-term wealth.

2. Strategy

Why are you doing this? The answer to this question will shape your entire strategy. Whether you’re aiming for a few properties or dreaming of 50, you need to understand what your goals are.

Your strategy should reflect your end goal. If you just want a paid-off home and a comfortable retirement, the approach will be different than someone who wants to retire early with a substantial passive income. If you're aiming for a large portfolio, you’ll need a more complex structure, and be prepared for more work and risk.

Start by asking yourself:

  • Why do I want to invest in property?
  • How quickly do I want to build my portfolio?

These answers will guide your decisions and help you stay focused as you move forward. Your strategy will evolve over time, just like mine did when I bought my first property at 21. The key is to be adaptable while staying grounded in your core objectives.

3. Borrowing Capacity

Before you even begin looking at properties, it’s crucial to know how much you can borrow. There’s no point browsing properties online if you don’t know what you can actually afford.

I recommend speaking with a mortgage broker—they’ll help you understand your borrowing capacity and accelerate your property purchasing process. In fact, 75% of property buyers in Australia now use mortgage brokers for a reason: they have access to a wide range of lenders and can often secure better deals than going directly to banks.

Focus on finding a lender who offers:

  • The best valuations
  • The highest borrowing capacity
  • Flexible loan options for future purchases

It’s not just about getting the lowest interest rate—it’s about getting a loan that works for your overall strategy.

4. Your Risk Profile

This is one of the most important factors in building your portfolio. Understanding your risk tolerance will help shape your investment strategy.

Are you someone who wants to play it safe, buying one property at a time? Or are you more risk-tolerant and looking to scale quickly? If you’re aiming for a sizable portfolio, you'll need to be comfortable with more risk, and that might mean using equity to buy more properties as soon as possible.

I’ve worked with clients who started with nothing and are now owning 5–10 properties, generating significant passive income. For example, some clients have already accumulated $200,000–$300,000 in equity within just a year, tax-free!

If you want to scale quickly, you need to understand your risk profile and act accordingly. Some people prefer a steady, conservative approach, while others want to push hard for faster growth. It’s all about aligning your strategy with your risk tolerance.

Final Thoughts: Building Wealth in 2025 and Beyond

If you follow these four pillars—getting your deposit in order, defining your strategy, understanding your borrowing capacity, and assessing your risk profile—you’ll be well on your way to building a scalable real estate portfolio.

Let’s talk numbers: If you start by purchasing one property worth $500,000 in Q1 of 2025, and another for the same price in Q4, you’ll have a combined portfolio worth $1 million by year-end. With just 5% growth, your properties will be worth $1.05 million by 2026, and over the next 20 years, they could grow to $2.65 million—tax-free equity that you can use to fund your retirement or further investments.

Real estate can be a powerful wealth-building tool, especially if you start early. But the key is getting the strategy right from the beginning, staying focused on your goals, and understanding the pillars that will support your growth.

If you’re ready to take the next step, I’d love to help you get started. Book a discovery call today, and let’s work together to make 2025 the year you start scaling your real estate portfolio.

Thanks for reading—see you in the next one!

Location: Australia

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