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Hey there, fellow real estate enthusiasts! Ready to embark on a journey towards success? Let's talk about setting realistic goals, a crucial step for new investors like you. By establishing clear objectives, you'll be able to navigate the real estate market with confidence, stay motivated, and unlock long-term prosperity. So, let's dive into why setting realistic goals is so important and discover some practical tips to help you chart your course to real estate triumph.
Realistic goals act as your compass in the exciting world of real estate investing. They keep your expectations grounded in reality, create a roadmap for your success, and guide you towards making informed decisions based on your available resources. Plus, they keep you motivated during the ups and downs and give you the flexibility to adjust your plans along the way.
Before you jump headfirst into the real estate market, take a moment to envision what you want to achieve. Are you looking to generate passive income from rental properties or explore the thrill of short term rentals, or flips? How involved do you want to be? How big do you want to grow? Is this going to be your full-time job, or are you looking to do it as a side gig? Once you have a clear vision, it's time to set some specific and measurable goals. Identify milestones, like acquiring a certain number of rental properties, or reaching a targeted net monthly rental income. These goals will serve as markers of your progress and enable you to make necessary adjustments along the way.
Now, let's talk timeframes and resources. We spout this all the time: Remember, real estate investing is a marathon, not a sprint. I will say something here that seems opposing: Set realistic timelines based on the capital, time, and expertise you have at your disposal, and dream big. You undoubtedly need to start smart (let’s not spend all of grandma’s retirement cash on a whimsically researched deal), but also try to make goals that are going to eventually push you. Building a successful real estate portfolio takes time and effort, so don't feel like it all needs to happen for you right now, this year or even in the next couple years! Remember, your capacity to handle this will grow as your knowledge and experience grows, and you may be capable of more than you initially thought.
Next, break your goals down into smaller milestones to make them more manageable. Celebrate each milestone as you progress, whether it's researching potential properties, securing financing, or closing your first deal. Each step brings you closer to your ultimate success! And while you’re at it, read the Gap and the Gain by Dan Sullivan and Dr. Benjamin Hardy, and really strive to keep your eyes forward while keeping your appreciation for your success measured against where you started, not where you want to be.
Be sure to check in on your goals regularly. The real estate market is ever-evolving, and life may throw you a curveball or two. Don’t be afraid to reassess your goals, measure your progress, and make adjustments as needed. For example, we had a goal in 2023 to buy 200 doors. As we started pushing forward we realized we would need to actually spend some significant time on building our business to facilitate that goal, and our quarterly goals shifted to growing our business and being prepared for explosive growth in the first two quarters in order to facilitate expansive growth in the last two quarters. We may not make 200 doors, but no matter what we will be able to look back at a year full of progress toward that goal, and it won’t be far away. Stay flexible and adaptable throughout your real estate journey. Remember, success is a continuous process that requires constant evaluation and adaptation.
The last nugget of wisdom we have to offer here comes from the amazing Brandon Turner, former host of the Bigger Pockets Podcast and founder of BetterLife Tribe. When you are making these goals, try to center them more on who you want to BECOME rather than what you want to DO. So for example, I may change my thinking from “I want to own $5 million worth of real estate”, to “I want to be an impactful real estate investor who has acquired over $5 million in real estate.”
So, my fellow real estate enthusiasts, it's time to set those realistic goals! By defining your vision of who you want to become, setting specific and measurable goals, considering your resources and timeframes, breaking them into milestones, and regularly reviewing and adjusting, you'll be well on your way to navigating your journey towards real estate success. Let's make those dreams a reality!
