Goals are important in any successful journey and that holds especially true in Real Estate Investment. More importantly is setting achievable goals.
I an researching trends in Real Estate every week which means I use Google as a search tool. The more specific my search, the better information I see. For example, “Real Estate” gives over a million articles yet “Waterfront Properties in SW Florida” gives fewer but more specific results.
Your Goals for Real Estate Investing should be approached in the same fashion. Not investing in “Real Estate” but instead looking for ” 8-12 unit multifamily properties in Fort Myers, Florida“. The hardest part of making goals this way is to stay focused. Work with an experienced Realtor to focus on your specific properties because along the way you will hear about the Real Estate explosion in Las Vegas and your buddy who just purchased a house in Pittsburgh for 40 cents on the dollar. Work with an experienced agent and stay the course.
Do not set specific time and money goals. For example, “I will flip 3 properties by Christmas and make $100,000 profit.” What happens when Christmas gets here and you have only flipped one property with an $18,000 profit and you are still refurbishing your second property. Many people become frustrated and disappointed and just quit. However, if your goal is to purchase three single family homes, refurbish, lease and then sale each unit for its maximum profit, you are more likely to continue towards your goals. Each transaction is a learning experience making the next transaction easier and more efficient. After your third flip, you have successfully learned to flip homes for a profit. Instead of quitting, your experience leads to bigger goals and hopefully bigger profits.
Periodically, your goals and results need to be evaluated. Your goals need to be written down so they can be reviewed and measured. If you cannot measure your progress and your success, how can you decide if your efforts are bringing you results? Also, as you review, you can make necessary changes to your goals to reach the anticipated results.
Work with a Realtor that is the specialist for your choice of property investing. Your cousin may be an excellent Residential specialist but your interest is investing in retail buildings. Your cousin may not have the expertise or market expert to get your transaction completed. Instead, ask your cousin to refer you to another agent with this expertise.
- Write your goals
- Work with an experienced Realtor
- Measure your results
- Review your goals
- Do it again!
by Mike Cathell, Real Estate Solutions of SWFL