When I ask people about their real estate investing goals, I usually get one of three answers. They tell me they want X % return, they just want to make money or they flat out do not know. Occasionally they tell me they want to retire or quit there job. Are these good goals to have?
While they are a good starting point, they fail on many levels. First, a % return is an objective, not a goal. Making money to retire or quit your job are very vague and have more to do with motivation and the Why you want to achieve your goals. Goals should be written down, measurable, clear and you should be able to write down exactly what it takes to achieve your goals. There have been extremely compelling studies that show that people who write down their goals are much more likely to succeed.
If you have not had the privilege of reading anything by Brian Tracy, I strongly recommend it. He has some great books and material on Goals, Productivity, Overcoming Procrastination, etc. Investors face many challenges. Investors struggle starting out, finding deals, funding deals, doing deals, growing and protecting their wealth. I myself have faced all of these challenges at some point in time. Let’s look at some tips that helped me and many others including experts in real estate and all industries.
Tip 1 – CLARITY – With goals, it is not enough to have a goal just to make money. A good clear goal written down is “I want to generate 10K in monthly cash flow in 3 years.” Now, the next step is to clearly list what it takes to achieve these goals such as by investing in 30 single family rental properties that on average generate a little over $300 positive cash flow per month in X market, fund it with Z solution, utilizing N systems and teams to find and do the deals. Each of those items can be broken down into subtasks that make them extremely clear. Clarity can make you productive, effective, efficient, overcome procrastination and build confidence to the point were you find that very little is not achievable.
Tip 2 – Multiply your goals by 10X then write down the tasks to achieve – This is an incredible exercise. When you multiply your goals by 10 you realize that you cannot complete all the tasks. You have to create systems and delegate them to your team. I urge you to complete this exercise, what you will likely find by listing tasks to achieve 10X goals is that nothing is impossible, actually achieving it is quite realistic. Some of the tasks may be a bit of a challenge, all you have to do is break each task down to clear and simple tasks and take action.
Tip 3 – Create and document effective and efficient systems – businesses run on systems. If you are to achieve 10X goals, you need systems to generate leads, followup and nurture leads and to handle all of the daily processes that will make you a success. I have seen systems on how to comp properties, how to find contractors, how to handle permits, checklist of items to complete when you put a property up for sale, checklist for due diligence on properties, etc. Systems work, document your systems and continue to improve them.
Tip 4 – Build teams and delegate – No one can do it all, time always becomes the constraint. Build a great team and delegate your systems to them, with the freed up time you now look at ways to improve your business.
Tip 5 – Apply 80/20 and Parkinsons theory – 80/20 is a theory that says 80% of results will come from 20% of your efforts. It can be used in many ways and is basically doing what works. A great example of Parkinsons theory is to give yourself a tight time deadline so you will only do the items that get the best results. Using these 2 together is doing the right things the right way or put another way being effective and efficient.
Tip 6 – Review your goals daily – things change, so will your goals and the tasks to achieve them. Some of the most successful and productive people in this world revisit their goals daily.