Real estate investor, you have one important step to take that can help you win in business (just ask Harvard!): Setting clear and concise goals.
Goal setting is a frequently overlooked step in real estate investing, but it is actually quite simple and effective. Without goals as part of their business plan, a real estate investor could make bad decisions that could ultimately hurt their business.
Why should a real estate investor set clear goals?
Goals have a power that business leaders often praise. They keep a business on track and focused. Goals can have a big impact on long term results, short term success and how professional a real estate investor is seen among his peers, but also his potential partners and clients.
Real estate investing is a great business for a goal setter to be involved in, since it contains clear measurements of success as well as such exciting growth potential. As a real estate investor, goals can help you climb the letter from those first few properties to bigger and bigger deals.
“Obstacles are things a person sees when he takes his eyes off his goal,” Eli Cossman.
Does goal setting work for a real estate investor?
According to studies, yes! In 1953, researchers interviewed the graduating class of Harvard University about their career goals for the future. Only 3% had written goals and specific plans for achieving them! Imagine that! But 20 years later the researchers re-interviewed the class of ’53.
Here’s what happened: All students had a Harvard education to be sure, but the 3% with written plans for the future were worth more, in financial terms, than the other 97% combined! This shows the power of written goals.
Which specific goals should a real estate investor make?
When it comes to the real estate investor, there should be three main area of goal setting:
* Cash flow
* Capital growth
When it comes to all of these goals is it vitally important for a real estate investor to make them specific (i.e., I want a cash flow of $X a month within the next 10 months). It is also important to write them down, share them with partners or staff and use them as a motivator. Many real estate investors create graphs about specific financial goals so they can track them visually at a glance.
Make decisions about your business with your goals in mind. Do the deals you make turn your goals into reality?
“If I’ve got correct goals, and if I keep pursuing them the best way I know how, everything else falls into line. If I do the right thing right, I’m going to succeed.” – Dan Dierdorf