5 Real Estate Goals Every SMART Investor Should Set

20 February 2020

Wikipedia defines the word “goal” as the desired result or the idea of the future that is imagined by a person. Also, this word means “a plan” that one is going to achieve. There is one criterion that distinguishes a goal from a simple desire. A goal usually has a certain fixed amount of time when it would be completed. 

People who set and achieve goals often feel superior to others who don’t. People’s attitudes can explain this to setting goals. Some of them seem to be unattainable or too complicated to achieve. In practice, a goal can be divided into small, manageable steps that do not require a significant amount of time or specialized knowledge. That is just a matter of self-discipline and regularity of endeavors being made to achieve a particular goal.

If we weaken the weight of the word “goal,” it will be easier, from a psychological point of view, to make a concept of goals work. We need to start perceiving a goal as a sign of accomplishment, try to turn goals into small plans and implement them bit by bit. Only in this case, we will be able to achieve higher goals. 

From this article, you will find out how to achieve your business goals in real estate investing. We will describe the most efficient approaches to accomplish the goal for investors, brokers, and realtors.

SMART PLANNING
SMART PLANNING

SMART Real Estate Goals

According to the research conducted by a Harvard Business University, 83% of people do not set goals at all. And 92% of people fail to achieve the goals they had set. Applying this to business, those businesses that do not set goals are ten times less successful than businesses that do. 

The answer to the question, why people do not achieve goals is quite simple. Their goals do not satisfy several important criteria. SMART goal setting is the method that turns vague ideas into structured plans. Let us consider these criteria. If you want to set a realistic and achievable goal, it has to be:

  1. Specific
  2. Measurable
  3. Attainable
  4. Relevant
  5. Time-bound
Visualize Your Goals
Visualize Your Goals

Make A Plan 

Writing a plan is always a better option than keeping everything in mind. According to the study by Harvard Business University, if you write down the goal, it is 14% more likely than you will achieve it. 

Every business that has a goal to be successful needs to develop a business plan. This plan should include a portfolio, company hierarchy, marketing strategy, and mission statement. These issues will help you serve you as a basis to define the further strategy of achieving your real estate goals. 

When you have prepared the plan, review every section more precisely. For instance, the mission statement is useful when you need to sustain the motivation of the investors, and the hierarchy may help to discover the projects for the specific teams. Investment portfolio and marketing strategy are useful in terms of identifying the areas of development.

How to create a perfect investment plan
How to create a perfect investment plan

Short- And Long-Term Real Estate Goals 

The goals can be large or small. The only thing that determines this aspect is your ambitions. For instance, if you are a real estate agent, five contacts a week or driving to a certain number of houses for rent can be your small goal. Larger goals are driving to more rental properties, taking place over a longer amount of time or making more transactions. It does not matter if the goal is large or small, the only thing that is important, whether this goal moves your business forward or not. 

Specific Goals

If you set a business goal, it should be very specific. You need to come up with practical steps. If your goal is to enlarge the annual income, the goal should not sound like “I want to earn more money” or “increase finance”. It is better to change the wording to: “I want to increase the yearly revenue so that I can expand the marketing budget next year.” Then you can divide the goal into stages and make a checklist. After implementing each item cross it out. This creates a sense of accomplishment and finality which makes achieving the next stage of the goal easier. 

Also, you need to answer the following questions:

  • What exactly am I trying to achieve?
  • Why is this goal important?
  • Who will be involved to successfully achieve the goal?
  • What resources do I need to accomplish this goal? 
  • How will achieving or failure affect the bottom line of my business?
2020 Real Estate Goals
2020 Real Estate Goals

Measurable Real Estate Goals 

Measurable goals are the goals that have clear indicators of what should be accomplished. This helps you to keep yourself motivated on the way to achieving the goal. When you are tracking the steps, it is easier to evaluate the progress. 

If your goal is to save up $10,000 per year, then it will be more convenient to divide the goal into shorter periods of time and put about $900 every week. You need to take into account unforeseen circumstances, additional expenses, taxes, etc. If you skip one week you will notice it at once and it will be easier to get things in order faster.

Attainable Goals 

Attainable goals are realistic and possible to accomplish. People often make a common mistake, setting very ambitious goals that are unworkable. If you are a new real estate investor who wants to flip 40 commercial properties in your first year, then you will probably fail.

If the goal is too ambitious and the person fails to accomplish it, often one gives up and stops setting goals at all. That is why you should be practical and consider the situation calmly before setting a goal. The goal can be challenging but it should not be too complicated to achieve.

You need to write down the answers to the following questions:

  • Do I have enough money to accomplish this goal?
  • Do I set up a realistic time frame to achieve the goal?
  • What difficulties and obstacles may I face on my way?

If you analyze every possible negative course of events and find the solution for each problem in advance, then you will be prepared if something goes wrong.

Relevant Real Estate Goals

Setting relevant goals is about making sure that the goal correlates with the overall strategy of your company. Setting a goal to be the CEO of a real estate company one day is a very ambitious wish, but if at this moment you are looking through the job vacancies on craigslist then your goal cannot be called relevant. 

Dreaming about the future and establishing long-term goals is a good way to keep yourself motivated. However, to improve your business’ bottom line, the goal should be more realistic.

Time-Bound Goals

Every goal should have a deadline. This is a keystone of success. When you have the final date, the chances that you will distract your attention from the goal are smaller. If the deadline is not clearly defined you can lose some motivation and waste your time on procrastination. But on the contrary, if you make a schedule of your everyday meetings and follow the plan then the success is guaranteed. In this case, much depends on your skills to discipline yourself and stay focused. 

You need to consider what you will do today, tomorrow, next week and three months from this day to accomplish your goal. For example, if your goal is to improve your education on real estate then you need to visit conferences and networking events two times a month.

GOALS
GOALS

Examples Of SMART Goals 

Let us look at three main categories with examples that will be useful for your real estate business.

Business goals: This category of goals may include developing a marketing strategy and expanding the team in to tackle more complicated projects. For instance, your goal is to increase the number of social media followers by 10% for half a year. You can achieve this goal with the help of paid online advertising and producing more engaging content. An example of a business goal in investing can be to make three deals in a year.

Personal goals: Personal goals relate to your self-development and education apart from the real estate business. This category of goals includes reading a book per month, visiting one lecture on topics of interest, expanding the skill set, learning a new language or making changes to your daily responsibilities.

Family goals: Sometimes it is important to take a rest and spend time with friends or family. A good example of the family goal is taking digital detox for a week while going on a vacation with family. These goals are essential in terms to create a well-balanced life.

Summary

Establishing goals that relate to the SMART approach is the best solution to accomplish long-term success. Before setting each goal you need to ensure that it meets the requirements. 

The goal should be specific which means that you should clearly understand what is the desired final result, what practical steps you will apply to accomplish this outcome, what resources you will need and what are your actions in the case of a negative scenario.

Also, the goal needs to be measurable and have special metrics. You should constantly track the progress. You will achieve the goal if it is attainable and corresponds to reality. Your goal is relevant when it fits into the framework of your business strategy.

Finally, it has to be time-bound in order not to distract the attention and keep you motivated for a considerable time. It is better to make a written version of your overall plan and cross the points off the list. 

Establishing goals that relate to the SMART approach is the best solution to accomplish long-term success. Before setting each goal, you need to ensure that it meets the requirements.
The goal should be specific, which means that you should clearly understand what the desired final result is, what practical steps you will apply to accomplish this outcome, what resources you will need, and what your actions are in the case of an unfavorable scenario.
Also, the goal needs to be measurable and have special metrics. You should constantly track the progress. You will achieve the goal if it is attainable and corresponds to reality. Your goal is relevant when it fits into the framework of your business strategy.
Finally, it has to be time-bound in order not to distract the attention and keep you motivated for a considerable time. Of course, it is better to make a written version of your overall plan and cross the points off the list.

The goal should be specific which means that you should clearly understand what is the desired final result, what practical steps you will apply to accomplish this outcome, what resources you will need and what are your actions in the case of a negative scenario. Also, the goal needs to be measurable and have special metrics. You should constantly track the progress. You will achieve the goal if it is attainable and corresponds to reality. Your goal is relevant when it fits into the framework of your business strategy. Finally, it has to be time-bound in order not to distract the attention and keep you motivated for a considerable time. Of course, it is better to make a written version of your overall plan and cross the points off the list. 

Perfect planning
Perfect planning

Each goal falls under a certain category. It is very convenient and easy to categorize and prioritize your goals. Divide your goals into business, personal and family once.  It is also crucial to set priorities. Here you can apply the well-known Eisenhower’s principle and group your goals into four categories: 

  1. Important and urgent
  2. Important but not urgent
  3. Not important but urgent
  4. Not important and not urgent

These two mentioned above approaches – SMART method and Eisenhower’s principle will help you manage your everyday life and business issues and achieve your investing goals more effectively.

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