Tips for Setting Your Real Estate Investment Goals

You have probably heard about the importance of setting goals since you were in high school, maybe before. Not many individuals can experience true achievement without having set and built steps to achieve the goal. The same is true for successful real estate investors. Therefore, these are a few tips to help you set your real estate investing goals.

Define Your Vision

Your first step in setting your investing goals is to define your vision. Consider what you would do if money was not an option. How many commercial and/or residential properties would you own? Would you manage them yourself, or do you want a property manager to handle these responsibilities? You should define whether your investments will become your primary job or a side business.

Don’t forget to state why this vision is important. How will it affect your lifestyle? Will it help you with other goals, such as your retirement, paying off major bills, or replacing your income?

Review Your Current Situation

Next, you should understand where you currently stand. What is your financial situation? How much time can you contribute to your real estate business each week or month? What skills do you bring to the table? For example, if you plan to fix and flip properties, you should either have sufficient rehabilitation and building capabilities, or you need to build partnerships with contractors who can do the work for you.

From these questions, you should be able to set your budget and time commitments. You should also understand where you may need help.

Set SMART Goals

SMART goals are specific, measurable, attainable, relevant, and time-bound. Set both long-and short-term goals. These should be specific to your real estate investments, including the type of property you hope to invest in, the neighborhood or community you plan to invest in, your budget, your willingness to renovate, etc.

You should be able to measure your goal progress. This requires that you break your goals into steps. For example, you may build your team, research your market, find prospective properties to tour, and make your first purchase. Build steps until you achieve the goals you had planned during a specified period of time, such as one, three, five, or ten years.

Don’t set goals that cannot be achieved. If you only have $10,000 in the bank and a low credit score, you shouldn’t expect to purchase 10 properties in your first year. Instead, focus on building your savings, paying off your personal debt, and increasing your credit score.

As you set your real estate investing goals, consider building a business plan for your investment journey.