Successful real estate investing requires many different components such as high-quality residential property management, the right investment style, and others. On a personal level, as noted by froerer.net, you also need to have the right goals since they affect the rest of your investment behavior.
In fact, goal-setting may perhaps be the most important component that can lead to real estate success. To set the right real estate goals for the year ahead, you can follow the SMART system of goal-setting.
S is for Specific.
First of all, your goals need to be specific, not general. To create such a specific goal, you will need a timeline, what you want to accomplish, and a motive. For example, you may want to purchase five single-family residential properties in the next 18 months to supplement your current annual income.
M is for Measurable.
Next, you have to make your goals measurable. Measurable goals include the number of properties, the expected return on investment, and other elements. Using the example earlier, you may want those five single-family residences to have an annual return rate of 6 percent or higher. With this benchmark, you can track your progress better along the way.
A is for Attainable.
Thirdly, you have to make your goal attainable in spite of your ambition. Ambition is good, but an unrealistic goal can only spell disaster for you. You can set a big number as your profit goal only if you have real estate experience. For first-timers, you can settle with pining for positive cash flow and a potential for appreciation from a rental property for instance.
R is for Realistic.
Fourth, you have to make your goal realistic as well. A realistic goal will be based on the resources you have available. You can envision a future where you receive the most profits from your properties with the help of a great property management company.
T is for Time.
The final T stands for Time, which you already should have incorporated in your goal-setting. As long as you adhere to the SMART system of goal-setting, you can achieve real estate success in 2018.