What are the smartest and most successful real estate investors doing differently when setting goals for the New Year ahead?
Simple is smart when it comes to the world of real estate investing. However, when it comes to annual goal setting for real estate investors, it can also be a trap that derails their aspirations. So what effective and advanced goal setting strategies could more investors be applying in order to get ahead in 2015?
Check out the following questions, critical elements, and savvy planning moves that can help individual real estate investors experience their best years ever:
Determine Your Real Priorities
The goal lists of most real estate investors might include a dollar figure they want to make, and even how many deals they want to do over the next year. These can be great additions to goal lists and real estate business plans. However, while there may be some that only think in terms of cash and bank statements, others know that if they dig deeper they’ll find that these items are just a means to an end. Unless these are also listed and documented; how do investors expect to stay on track to attain them? Think about it. List them. Incorporate them. For some, this may be a certain lifestyle, more time, complete freedom, or something else. Paper money is just, well, paper. What do really hope it will buy you?
Focusing on the Right Metrics and Statistics
Some goals can focus on metrics and statistics, which can take them further from their real goals, or at least set them up for major catastrophes down the road. The housing and financial crash of the early 2000s was the epitome of such a scenario. It was all about toys, high incomes, and deal volumes. It was all about rushing to these goals with little thought for sustainability or consequences. We’ve seen the outcome of that.
Real estate can deliver huge returns in a relatively short period of time if approached correctly. Set a goal of making a $1M at any cost, and you’ll find it comes easy if that is all you focus on. The same goes for focusing on transaction numbers, web traffic, social shares, making offers, and other metrics. All of these things can be great, but rarely will things pan out if they are focused on as the ultimate goal. So watch your goals. If these other metrics are on your list, make sure you recognize they are often a symptom of success and making the right moves, not the other way around. Note that net profit can trump most of the other items listed above.
Know which Numbers to Ignore
Knowing which numbers and metrics to ignore is just as important as knowing which to include. Again, while some of the above metrics and numbers can be great to strive for, they can also sabotage real estate investors. For example; simply focusing on Facebook likes or shares, retweets, calls made, or leads generated can be deceptive and counterproductive. Not getting enough of them can cause investors to take actions to buff them up which may not help long term success or net profits.
Security
Protecting what you already have and what you plan to add, is as important as making any gains. Sometimes this is more challenging than earning and doing more deals. It is never too early to plan for asset protection, reducing liability, and increasing privacy. If you haven’t made these things a priority, make 2015 the year you do.
Diversification
All expectations are for the U.S. real estate market to keep forging upwards. However, the time to diversify isn’t when things get ugly or slow down, it is while they are good. Smart investors will have diversification on their list for 2015. Diversify into new niches, areas and businesses over the next year.
Real Estate Education
When you stop learning you stop improving. So chief among the goals and plans of serious real estate investors for 2015 should be plans for developing real estate education and knowledge. What real estate courses and books will you tackle in 2015? Which events are you going to? What will you learn about that will propel your ability to meet your other goals?
