How to build a profitable property investment portfolio in 2011 is pretty much the same advice as it would be for any year, or at any time, with one difference, to build profits in 2011 it is a good idea to increase your capacity for taking risks, not by much but just enough to grab the best deals before anyone else.
Right now around the world there are millions of properties on sale for far less than they are worth. In America alone there are hundreds of thousands, and they are so far below value that sellers have started putting BMV in relation to their replacement build cost -- a true below market value measure.
Admittedly tens of thousands of those properties (if not hundreds of thousands) would bring the opposite of profitable into our investment property portfolios, but equally tens of thousands of them are profits waiting to be realised, it is all about being cold, calculating and ruthless. You need to see a property and do as much research as you can so as to protect yourself from problems, but not so much as to lose out on the property.
As we are reading an article about building property investment portfolios as oppose to making your first investment, it is likely that you are an experienced or at least a semi-experienced investor. From experience you already know the basis of good property portfolio investments when you see them, adopting a higher level of risk appetite and a dash of ruthlessness is simply learning to listen to your gut, doing the core due diligence (check the title, make sure you are buying from the owner, any debts outstanding on the property, and other legalities) and putting down the deposit.
But the key word for building a profitable property investment portfolio in 2011, is building. There hasn't been more foreclosed and distressed properties on the global market at any time in modern history, and there are more on sale in the US now than even during the great depression.
This is therefore a historically good time for residential property investors to be expanding their portfolios; to be buying up properties now that will return them a fortune a few years into the recovery. It's time to off load that poor performer that you keep for sentimental value (perhaps it was your first investment) and put all your weight into this new ruthlessness. Get the best properties before they're all gone.