What Real Estate Goals Do You Want to Achieve?
That opening question is an important one! Know where you want to go!
Before you even think about acquiring property, flipping, etc; you first need to lay out your goals!
Create short term goals that you want to accomplish within the first year.
Create medium term goals that you’ll complete between years 1-5.
Then come up with long term goals for after your first 5 years in real estate investing.
My Short Term Goals: One Year or Less
- Create my real estate investing team
- Set up a website
- Acquire my first property
- Lease out my property so it begins cash flowing
Update: All 4 short term goals have been completed. I can now focus on my medium term goals and shift certain goals into the short term timeline to knock out again.
My Medium Term Goals:
- Acquire 2 new properties in Year 2
- Acquire 3 new properties in Year 3
- Acquire 5 new properties in Year 4
- Acquire 9 new properties in Year 5
- Buy, Rehab, & Flip my first property
- Fix & Flip 5 properties
- Earn gross revenue of $500,000 by year 5
My Long Term Goals:
- Acquire 1,000+ units
- Eventually outright own 1,000+ units
- My business is automated to where I’m hands off earning passive income
- I get to retire in my 30’s and collect my passive income from real estate business
- My business is grossing $1,000,000+ annually
In order to know where to start in real estate investing you need to know your goals.
You can see mine broken down into three different periods so that I can focus on year 1 goals first to lay the foundation then mid term goals to build the foundation and then finally my long term goals once I’ve gotten my business rolling in years 1-5.
Goal Setting Questions to Ask Yourself
Here are some questions to ask yourself that may help you in deciding your goals:
- How much time do you want to dedicate to building your investing business?
- How much money does your business need to gross & how much to net for you to retire from your job and earn a living from real estate instead?
- How much money do you want your business to gross in revenue per year 5 years from now?
- How much money do you want your business to net in revenue per year 5 years from now?
- Do you want to be heavily involved in your business or allocate most of the work?
Once you have created your goals then you can calculate how many units you need to acquire to reach your goal.
For example, if you want to gross $100,000 per year and you expect to average $800 per month in rent per unit you can then calculate how many units will be needed which in this case is 11:
- $800 x 12 months = $9,600 per unit
- $100,000/$9,600 = 10.41 units
Setting revenue goals will give you a clear perception of how many properties you need to acquire if you are renting and how many flips you need to do if you are a rehab investor.
Alright so now you’ve thought about why you want to invest in real estate, what your goals are, and have done the math to see how much real estate cash flow you’ll need to cover your cost of living. You’re doing great!
Stop by my blog for more education articles on real estate investing to keep your momentum going! I look forward to your success.
Comment 3 real estate goals below!
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