SS170: Real Estate Investments: How to Define Your Goals

SS170 Real Estate Investments How to Define Your Goals

Goal setting is important when planning your real estate investing journey. In this episode, Charles discusses how and why you should begin setting goals.

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Talking Points:

  • Defining your real estate investing goals is crucial to developing a successful investment strategy and a successful business. Here are some steps to help you define your real estate investing goals:
    • Clarify your objectives:
      • What am I trying to accomplish?
      • What do you really, really want?
      • Define your financial goals – whether it’s generating passive income, building wealth, or a combination of both.
      • Do you want to earn $10k a month passively, or do you want to build an 8-figure net worth?
    • Assess your current financial situation:
      • How much money do I have available to invest?
      • How much time do I have to devote to real estate investing?
      • How much risk am I willing to take?
      • Do I have access to additional resources? How can I utilize those resources?
      • How can I find additional resources, partners, etc. How can you find investors and partners to help reach your goals?
    • Evaluate different real estate investment strategies and choose one
      • Decide on the type of real estate investment that aligns with your goals (e.g., residential, commercial, multifamily, fix-and-flip, wholesaling, etc.).
      • Consider the location and market conditions that best suit your strategy. What class of neighborhoods and properties do you want to invest in?
    • Set measurable target goals with a timeframe for each.
      • Bill Gates says, ‘Most people overestimate what they can do in one year and underestimate what they can do in ten years.’
      • When will you build a team?
      • How many deals will you review per week?
      • How many mailings will you send every month?
      • How many units will you buy this year? How many units next year? How many in the next 5 years?
      • When will you hire a property manager?
      • When I am mentoring investors, we work backward. What is your 5- or 10-year goal? Then, work that back to what you need to do this week and what you need to do today. Big goals can be overwhelming, but creating a daily plan to reach them is much more realistic, and it is more likely that you will stay on track.
    • Develop a goal for scaling and stepping back.
      • Have a plan for when you will step back from daily operations. I feel it is important in the beginning for real estate investors to be more active in their properties to understand how the rental property business works, from underwriting properties to dealing face-to-face with tenants and contractors. However, setting goals for outsourcing tasks, possibly property management altogether is important.
      • When I say scale, I mean getting your portfolio to a point where it does not greatly change your income by hiring a full-time employee or a third-party property management company. If you have 4 units, your cash flow will take a major hit if you outsource your property management. If you have 40 units, you probably can hire a full-time person and possibly a couple of part-time people to manage all of your units, and you can now spend your time buying more units or taking some time off.
    • Create a goal for investing in yourself, including continuing your real estate education and hiring mentors.
      • Go to real estate investing events and conferences.
      • Stay informed with market trends, regulations, and economic factors that may impact your investments.
      • Hire mentors. I have hired several mentors; they were some of the best investments I have ever made. Find a mentor 5 or so years ahead of you, and hire them to achieve your goals faster.
    • Regularly review and adjust your goals.
      • For me, this includes asking myself:
        • What HAS worked well for me?
        • What HASN’T worked well for me?
        • What are some things I need to do differently in the future?
        • What are my Goals and Outcomes for the future?
        • What is the VISION for my business and my life BEYOND next year?
      • Stay flexible and be willing to adjust your goals based on changing circumstances.
    • The SMART goal framework is a great way to set goals. SMART stands for;
      • Specific
      • Measurable
      • Attainable
      • Relevant
      • Time-bound
    • Setting SMART goals is the best way of achieving success in both your business and life.

Transcript:

Charles:
Welcome to Strategy Saturday; I’m Charles Carillo and today we’re going to be discussing how to define your goals as a real estate investor.

Charles:
Have you always wanted to invest in real estate, but didn’t have the time, didn’t know where to find the deals, couldn’t get the funding and didn’t want tenants calling you. Since 2006, I’ve been buying income producing properties and great locations that provide us with consistent passive income. While we wait for appreciation in the future and take advantage of tax laws while we’re waiting and unlike your financial advisor, we invest alongside our investors in every property we purchase. Check out to investwithharborside.com. If you like the idea of investing real estate, if you like the idea of passive income partner with us at investwithharborside.com, that’s investwithharborside.com.

Charles:
Defining your real estate investing goals is crucial to developing a successful investment strategy and a successful business. Here are some steps to help you define your real estate investing goals. Number one is clarify your objectives. What am I trying to accomplish? What do you really, really want? Define your financial goals, whether it’s generating passive income, building wealth, or a combination of both. Do you want to earn $10,000 a month or do you wanna build an eight figure net worth? Assess your current financial situation. How much money do you have available to invest? How much time can you devote to real estate investing? How much risk are you willing to take? Do you have access to additional resources? And how can you utilize these resources and how can you find additional resources, partners, et cetera? And how can you find investors and partner to help you reach your goals by helping them reach their goals?

Charles:
Evaluate different real estate investment strategies and choose one. So decide on the type of real estate investment that aligns with your goals. IE residential, commercial, multi-family fix and flip wholesaling, et cetera. And then consider the location, the marketing conditions that best suit your strategy. What class of neighborhoods? What class of properties do you really want to invest into that’ll allow you to attain these goals? Now, set measurable target goals with a timeframe for each. Bill. Gates famously says, most people overestimate what they can do in one year and underestimate what they can do in 10. When will you build the team? How many deals will we review per week? How many mailings will we send every month? How many units will we buy this year? And how many units will we buy next year? And how many units will we buy in the next five years?

Charles:
When will we hire a property manager? And when I’m mentoring investors, we work backwards. You know, what is your five and 10 year goal? And then work back to what you need to do this month, this week, and what you need to do ultimately. Today, big goals can be overwhelming, but creating a daily plan to reach them is much more realistic and is more likely that you’ll be able to stay on track. Number five is develop a goal for scaling and stepping back. Have a plan for when you will step back from daily operations. I feel it’s important in the beginning for real estate investors to be more active in their properties to understand how the real estate rental property business works from underwriting properties to dealing face-to-face with tenants and contractors. However, setting goals for outsourcing tasks, possibly property management altogether is important. When I say scale, I mean getting your portfolio to a point where it does not greatly change your income by hiring a full-time employee or a third party property management company.

Charles:
If you have four units, your cashflow will take a major hit if you outsource your property management. If you have 40 units or more, you probably can hire a full-time person and possibly a couple part-time people to manage all of your units, and you can now spend your time buying more units or taking some time off. Six is create a goal for investing in yourself, including continuing your real estate education and hiring mentors. Go to real estate investing events and conferences. Stay informed with market trends, regulations, economic factors that may impact your investments. Hire mentors. I’ve hired several mentors and they were some of the best investments I’ve ever made. Find a mentor five or so years ahead of you and hire them to help you achieve your goals faster. Seven is regularly review and adjust your goals. For me, this includes asking myself what has worked for well for me? What hasn’t worked well for me? And what are some things I need to do differently in the future? What are my goals and outcomes for the future? And what is my vision for the business and my life beyond next year? Stay flexible and be willing to adjust your goals based on changing circumstances.

Charles:
The smart goal framework is a great way of setting goals and smart stands for specific, measurable, attainable, relevant, time bound. Setting smart goals is the best way of achieving success in both your business and life. So I hope you enjoyed. Please remember to rate, review, subscribe, submit comments and potential show topics@globalinvestorspodcast.com. If you’re interested in actively investing in real estate, please check out our courses and mentoring programs@syndicationsuperstars.com. That is syndication superstars.com. Look forward to two more episodes next week. See you then.

Announcer:
Nothing in this episode should be considered specific, personal or professional advice. Any investment opportunities mentioned on this podcast are limited to accredited investors. Any investments will only be made with proper disclosure, subscription documentation, and are subject to all applicable laws. Please consult an appropriate tax legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of Syndication Superstar, LLC, exclusively.

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