How to Become a Successful Real State Investor
So you want to be a success real
estate investor? Well, you need to have your goal setting in line. In order to
have the greatest chance of achieving your goals you need to be setting SMART
goals. Now, not the Webster definition of smart, but rather SMART as an acronym
for Specific, Measurable, Attainable, Realistic, and Timely. I want you to
write these five words on a piece of paper because all your goals should be
evaluated to ensure they meet the smart standard.
So let's first look at the S in
smart, which stands for specific. Your goals need to be precise and say exactly
what you want to happen. Being specific helps you apply your efforts
effectively and clearly define what you are going to do. The specifics of your
goals are the what, why, and how. Ask yourself this question, what are you
going to do? Answer this question with action words such as learn, buy, create,
and so on. The why is why do you want to accomplish this goal and why do you
want to accomplish it now rather than later, and finally, the how. How are you
going to do it? You must ensure each goal you set is specific. Rather than
setting a vague goal such as I want to invest in real estate, set a specific
goal such as I want to own 2 rental properties each cash flowing $250/mo after
all expenses. See how being more specific allows your planning to be much more
focused.
Okay, now on to the M in smart, this
stands for measurable. Goals that are too large are hard to manage and if you
cannot manage your goals you will not achieve them it is that simple. The
measurable aspects of goal setting focuses mostly on short-term goals that when
built upon allow you to achieve your larger long-term goals. Let's take for
example our previous specific goal of owning 2 rental properties each cash
flowing $250/mo after all expense. To achieve this goal you need to set more
measurable short-term goals such as obtaining financing, locating properties,
rehabbing them if they are distressed, heck you may even need to learn how to
analyze a rental property to even know if it cash flows. See how even though
our goal was specific there is still more specific short term goals needed to increase
your chances of achieving the goal. The last item I want to touch on about
measurable goals is that you must have a gauge to measure them against. Set concrete
criteria for measuring progress. Not only will this keep you on track but as
you reach these short-term goals there is excitement in knowing you are one
step closer to your overall goal.
Now the A in smart, this stands for
attainable. If you set goals that are too large or too far out of your reach,
you won't truly commit to trying to achieve them. For example, setting a goal
of buying 100 rental properties in the next 12 months, or generating $250,000
in rental income in the next 12 months for most of us is not attainable.
Setting goals such as this you may start out excited and be ready to go get them,
but before long your subconscious will remind you that this goal is just too
much to achieve and you will become less and less focused on achieving your
goal and before long you will quit trying at all. The goal needs to be hard
enough that you have to work for it but not so hard you have no shot of
achieving it. When you achieve a goal it is exciting and has your pumped to achieve
the next one. This is the attitude you need to have, not a continued list of
unaccomplished goals. Building momentum with attainable goals is a sure fire
way of achieving more difficult long-term goals.
The next to last letter which is R
stands for realistic. Now, realistic does not mean easy but does mean doable.
If you have $500 dollars to your name and your goal is to buy 30 properties
next week this is probably not a very realistic goal. Could this goal be
achieved, possibly but is it more unrealistic than realistic, yes. Set goals
that will require effort, but if they are too difficult you are just setting
the stage for failure. On the other hand setting goals that are too easy is
just showing yourself you have no confidence and that you are not very capable.
Set the bar high enough that achieving it feels like an accomplishment.
Finally, we have reached the T which
stands for timely. This one is pretty self-explanatory. When setting goals they
must have an end point or target date. Is it next week, next month, two days
from now, no matter what the case there must be a timeframe associated with the
goal. When you do not set a timeframe you are not truly committing to
accomplishing your goal. Without a timeframe there is no urgency to start
taking action now.
Here at PA Deals we assist every one
of our clients by creating a custom blueprint that is formulated on the basis
of SMART goal setting. So, the next time you are setting a goal, no matter what
it is for, make sure it is SMART. Have a great day and until next time be
SMART!
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12monthsfreephones
This entry was posted on 11:09 PM and is filed under
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