Setting Goals For Real Estate Investing Success

Posted on 21. Feb, 2011 by in News

As a real estate investor, it is essential to know where you are going!  In the early stages of investing it is far too easy to get overwhelmed with the various strategies out there – don’t try to do it all.  Specialise in one area of investing and become an expert in that area.  To help you on the path to financial freedom and success as a real estate investor, you need to have a clear set of goals.  It is far too easy to make bad decisions when you don’t have a plan of where you are going. 

Take action today to make a plan, put your goals in writing and review every finding you make so that you stay on track.

Goal setting will help you to avoid making decisions based on fear, greed and hope (the three most destructive emotions in real estate). You can look at every potential real estate purchase or sale, check it against your goals and your plan, and make your decision based on whether it moves you closer or further away from your goals.  This teaches you to keep your emotions at bay – a critical skill for the successful real estate investor.  Emotions do not play a part in real estate investing, solid economic fundamentals do.
If you focus on the fundamentals and goal planning, you can go ahead and ignore the media! It doesn’t matter if everyone else is terrified, hopeful or filled with greed. You have a plan and are working towards that plan. You will look for specific deals with criteria from your plan, and if something meets your criteria you will buy or sell, no matter what the headline says is happening.

Your Five Year Plan – Goal Setting

This is a good technique which is easy to use. Sit down right now and write down:

  • Where you want to be financially in five years   (be specific, for example do you want to be earning $100,000/year in your job, own two properties that are giving you $500/month in positive income, and have $20,000 in saved for retirement)?

 

  • What can you do in the next 12 months to achieve each of the above items   (once again, be specific and try and make the items measurable)?

 

  • What can you do in the next six months to move towards your 12 month goals?

 

  • What must you achieve this month to move towards your 6 and 12 month goals?

 

Take action today by putting your goals in writing. Review these goals regularly. A monthly review is a good habit to get into when you are first starting out and then move onto a quarterly review once you are on target.  Find what works for you, and stick with it.

To Your Investing Success!

Richard & Jane

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