The most successful investors like to extol the virtues of investing in real estate. This market is usually more stable and easier to predict than other popular options, and it’s easy to get started. Real estate is not exactly a get-rich-quick scheme, but you can generate a satisfying nest egg if you learn the tricks and stick with it.
As with any solid investment, the key is to define your goals from the start. You might value such items as financial objectives, center of cash flow, appreciation expectations, business goals, or other short- and long-term objectives that will carry your investment forward.
Goals serve as a pathway that gives your investments direction and guides your choices. If you’re working on some promising real estate investments, here are eight goal-setting tips to assist you on your way.
- Set Goals on the Right Track
First, devise the topic for your goals. You want to get on the right track and set a course that will get you where you want to be as an investor. Each goal should be relevant to your aims, in both the long and short terms.
Goal setting is a highly personal exercise. Yours will vary according to what you hope to achieve. You can design the parameters for each however you see fit, but you will likely want to set goals in the following categories:
- Business model
Working within these categories will keep you on the right track toward profit and growth for your investment portfolio.
- Write SMART Goals
SMART goals are the standard for goal setting. The acronym stands for Specific, Measurable, Attainable, Relevant, and Timely. As you write your goals, fill in each criterion. Use the following guide to help you define your SMART goals.
Specific: Select precise numbers and language to state what you wish to achieve with your investments. For example, you might aim to draw a passive income of $2,000 a month before the end of your first year.
Measurable: Make sure your investment(s) can be measured. Set a goal to track the measurements. If you want to make $2,000 per month, you can calculate your progress at the same time every month.
Actionable: Set a clear action plan for achieving your goal. For instance, you might aim to expand your business by making at least one new contact each day.
Realistic: Don’t set a goal that’s too lofty. If you have only one property, $2,000 a month may be out of your reach. It’s okay to start small with your goals. If you set them too high, you risk losing momentum early on.
Timely: Select a reasonable period to reach your goal. You want to be able to define short-term and long-term goals.
Goals are not hard to define — and achieve — using this strategy. Check in with your SMART goals regularly, and make adjustments when necessary.
- Educate Yourself
Education can be a goal in itself, but it can also be a tool to help you reach the goals you set. You should learn everything you can about the market, properties, and successful strategies.
Subscribe to successful property blogs, take courses on smart investments, read books, talk with mentors, and familiarize yourself with your market of choice. Your efforts to learn will have a significant impact on your ability to make and reach profitable goals.
- Start Small
Lofty, unattainable goals can be terribly discouraging. If yours are too massive, you won’t readily experience gratifying progress; it will be difficult to feel that your daily actions are building toward your long-term goals.
Starting small empowers you to lay a foundation for larger goals. You’ll learn the basics and witness progress that motivates you to continue your efforts. This is especially worthwhile for first-time investors who may hit their fair share of hurdles while they’re learning the ropes.
- Use Tools
In the digital era, there are dozens of tools investors can use to make and keep goals. You can employ spreadsheets to track progress, apps for organization, blogs for knowledge-gathering, websites for information, and so much more.
Some of the best tools for real estate investors include:
- Mortgage calculators
- Free credit report apps
- Real estate glossaries
- Record searches
- Real estate law apps
- Property research tools
- Note-taking apps
- Networking profiles
Don’t ignore the many tools at your disposal. They can be your ticket to building a healthy investment portfolio.
- Share Goals with Others
Having others hold you accountable can be one of the best motivations for achieving your goals. After you’ve designed them and written them out, give a copy to a friend, family member, business partner, or a mentor. You might share them with multiple people so you have several people in your corner.
You can also gain valuable feedback by sharing your goals. Business partners or mentors can give you insights into action plans, and loved ones can support you with the work-life balance. The motivating and productive results of sharing your goals can be extremely gratifying.
- Track Progress and Celebrate Achievements
One of the most vital components of SMART goals is the ability to measure your progress. Monitor your processes, and mark when you achieve a milestone. If you’ve shared your goals with others, have them celebrate with you. Revel in the achievement, and use it as a motivating force to encourage further progress.
- Plan for the Unexpected
A goal isn’t a predictor of the future; events may derail your plans. It’s wise to have a contingency plan, especially one that keys into your goals. You should recognize that every goal you set may demand a measure of flexibility.
It’s all right to change the details at the last minute if something unexpected occurs. It’s tempting to abandon your goal when the process fails to pan out the way you planned. But by adapting your goal to the altered conditions, you can get back on track.
Contact Green Residential Today!
The property managers at Green Residential can help with any of your investments in the Houston metropolitan area. As you set goals and build your portfolio, we will support your properties with our services.
For more information about what our property managers can do for you, our flat-rate services, and our success rates, contact us today!