Setting goals helps to provide focus and direction, whether in your career or personal life. When it comes to property investing, setting goals can also help you to attain success.
To set goals, you need to carefully consider what you want to achieve and also put in the work to achieve those goals. As a property investor, the type of goals you set will determine whether or not you are able to achieve them.
Some people are not able to achieve the success they desire because they have been setting the wrong sort of goals. The reason for this is that the goals that they are setting are not “SMART”.
If you’ve been in the corporate world, you’ve probably heard of the “SMART” goal system. You can also apply the “SMART” technique to help you plan your real estate investing endeavours.
In the “SMART” system, the five golden rules to follow are that goals must be:
Let’s take a look at how this goal-setting technique can help property investors to remain SMART system can help investors remain laser-focused on their goals.
1. Set SPECIFIC goals
For a goal to be effective, it must be clear, well-defined and specific. This will help you to stay on the path you’ve chosen. A specific goal should answer these questions:
- What is it exactly that I must accomplish and why is this important?
- What steps must I take to achieve the goal?
- What resources do I need to meet this goal?
This is an example of a specific goal:
“I want to be able to secure and manage 6 co-living properties over the next 24 months through the rent-to-rent model that will help me generate positive cashflow.”
2. Set MEASURABLE goals
Goals need to be measurable. When you have a figure, metrics or KPI attached to your goal, this gives you a sense of direction and allows you to better track your progress in achieving that goal.
In property investing, being able to quantify the goal is important to help you make money (and avoid losing money). Therefore, a measurable goal is a quantifiable goal. It can be the return or investment, the number of properties to invest in or the desired rental income you want to earn each month, amongst others.
This is an example of a measurable goal:
“I want to earn a positive cash flow of $1,000 a month for each co-living property that I have.”
3. Set ATTAINABLE goals
Goals should be within reach. They should be something you’re able achieve with your ability, skills, effort, resources, time and finances.
To set attainable goals, be honest and ask yourself:
- Whether you have the resources, finances or time to take on this goal?
- Whether you may face any roadblocks in trying to achieve this goal and whether those difficulties can be overcome?
So, an example of an attainable goal would be: “I will put in 5 hours a week to do research in order to secure my first property within 3 months.”
4. Set REALISTIC goals
It’s good to have ambition in life. But sometimes, people set goals that are too lofty or impossible to achieve. If you set too unrealistic goals, you may end up disappointed and this may prevent you from trying again in the future.
So a realistic goal could be something like: “I want to maximise my profit by working with cash collaborators who share common goals with me.” This would be more realistic than attempting to go into property investing without enough financial resources.
5. Set TIMED goals
Having a timed goal is super important. When you give yourself a deadline, you’re indirectly giving yourself some pressure your goal before then and this will motivate you to put in the effort to achieve it. You can also set yourself smaller target milestones along the way to achieving your goal. Remember to celebrate your little wins too!