Photo by F. Muhammad via Pixabay
Whether you're about to sign on your first rental property or already possess a portfolio full of properties that are cash-flowing like crazy, you need this. Time to reframe your mindset, step above the minutiae, and get a panoramic view of the path you're choosing.
Why Set Goals?
It's easy to get caught up in chasing shiny new investments--especially as you gain experience investing and managing properties. But chasing every fabulous deal that pops up can take you on more than a few rabbit trails that won't get you any closer to your end goal.
- Maybe you want to semi-retire at 40 and travel the world with your family.
- Maybe you want to build your net worth so you'll be able to unload most of your properties once you retire and reinvest into building your own dream home.
- Maybe you want to focus on building sustainable positive month-to-month cash flow so you can pursue non-real-estate-related goals.
You might stumble across a slew of excellent deals and solid investments that don't fully push you toward your goals. They're good. Great, even. But maybe they require more in-depth vetting of tenants than you're willing to take on right now, or a complete rehab that you don't have enough hours in the day to pull off.
Zoom out. Secure your vision. Grab a pen. And set some goals.
Characteristics of Great Goals
- Excellent goals are specific and measurable. You'll know beyond a shadow of a doubt when you've arrived at them. Maybe it's a certain number in terms of cash flow or net worth. Maybe it's the point at which you can quit your day job. Maybe it's something else. If you can't measure it, it's probably not specific enough.
- The best goals are realistically achievable. Anyone can set a goal to become a billionare in the next 12 months. Unless it's realistic for you, keep dreaming about it and working toward more achievable chunks of that dream.
- The best goals involve other people. This one might surprise you, but a team/community/network mentality is staggeringly important for real estate investors. You'll need a team you can rely on, and your long-term goals should involve deepening your network with investors, real estate agents, and other industry professionals that are rock stars in their fields.