Investing in real estate might seem simple enough at first, but with all the changes and nuances taking place in the industry, it’s important that you set real, tangible goals every single year – and then stick to them. Below are five goals that everyone should set if they want to enjoy the least risk and the best possible profitability.
#1 – Commit to Learning
The biggest mistake you can make as a real estate investor involves believing that you have learned all you can about the industry and the market. No matter how much you learn, you have never learned it all, and there is always something else out there that can help you make better decisions about your financial future. If you understand market trends fairly well, start reading detailed analytics and figuring out how they apply to you and the type of investing you prefer. Read real estate investing news every single day to keep up with changes, too. These things are critical for your success.
#2 – Diversify Your Investments
If you’ve been investing in fix-and-flips for years, it might be time to consider branching out – even if you’ve been relatively successful. Other opportunities include investing in multifamily properties like luxury condos or even affordable apartments. This way, in the event that the market should take a turn, you have eggs in more than one basket, and you are far more likely to make it through any rough patches unscathed.
#3 – Set a Goal for Profits
Many real estate investors have the “as long as I’m profiting” attitude, but it’s far better to set actual monetary goals each year. Otherwise, you may not be driven to ensure that your profits actually match the amount of effort you’re putting in. Saying, “In 2021, I want to make $75,000 from my investments” is far more helpful than saying, “I just want to turn a profit.” With a specific figure, you’re more likely to carefully track every dollar spent, every dollar in, and every opportunity that can nudge you closer to your goal.
#4 – Find a Real Estate Agent (or Agency) You Trust
Every single real estate investor in the world needs a real estate agent by his or her side. These individuals have a better and firmer understanding of local housing markets than anyone else, and they can help you make decisions that can make you or break you. Shop around for an agent or agency you can trust. Find someone you can click with. Ideally, you’ll communicate with this agent regularly, and you’ll develop a helpful and professional relationship with them.
#5 – Expand Your Network
Even if you’re already profiting from your investments, and even if you already have a fantastic relationship with a real estate agent or agency you trust completely, there is still plenty of opportunity (and reason) to expand your real estate investing network. Real estate is a business that is all about people, and the more people you know, the better off you will be in the long run. Expand your network to include people like travel agencies, local tour guides and experts, analysts, economists, financial advisors, stockbrokers, and more. They can help you more than you might think, and you can help them in return.
Setting goals is important for being successful in your real estate investing ventures. Commit yourself to a life of learning and expanding your network, and always be open to diversifying your real estate investments when the opportunities arise. Finally, make sure you’re working with an agent you can trust and that you’re setting a numerical goal for profits. The combination of these things can help you realize a brand new level of success.
