Goal setting is an important process in growing any small business. However, it’s especially important as a real estate investor because of the high stakes and potentially high returns involved.
Most likely, you’ve heard the acronym that goals should be “S.M.A.R.T.” That is, they need to be “specific”, “measurable”, “achievable”, “realistic”, and have “timelines” for accomplishment. In real estate investing, there are specific categories where you can concentrate your goal-setting efforts with those SMART goals in mind.
Goals for the Number of Investment Leads to Pursue
Whether you buy to flip, or buy to hold, finding good deals is a numbers game. It may take sifting through 100 property leads before you find a handful worth considering. You need to have goals for the number of properties you’ll examine each month.
Goals for the Number of Offers to Make
From the list of leads you research, you’ll find properties worth considering. However, you’ll never acquire anything unless you actually make offers. Set and pursue goals for the number of offers you’ll make each month.
Goals for the Number of Properties to Acquire Each Year
Reaching certain goals like the number of offers you’ll make is completely under your control. Other goals exist as targets, and this is one of them. Setting a goal for how many purchases you’ll make each year steers your efforts, although you may or may not reach the target.
Goals for Gains Earned From Your Investments
For the fix and flip investor, this will be a dollar figure for monthly and annual net profits. For the long-term investor, set goals for gains you plan to take through selling or refinancing; or, for paper profits (equity) in your portfolio.
Goals for Cash Flow From Your Investments
Monthly cash flow is important for a long-term investor. Set and work towards monthly and annual net cash flow goals from your rentals.
Pursuing goals for pursuing leads, writing offers, acquisition, profit, and cash flow will keep your real estate investment business on the right track. Not only will setting these goals give you a target to hit, but it will also lay the foundation for growing your business into the future. For more help, contact Speritas Capital Partners today.