7 Steps to Achieving Your Real Estate Financial Goals
October 15, 2019
Founder and CEO, Tru Realty
In any career endeavor, it’s important to set smart goals and keep them top of mind. Setting strong financial goals is one aspect to keeping your business on the right track. There are many investment opportunities in the real estate industry depending on your area of interest and expertise. Having a big-picture goal of how much money you’d like to make is important, but equally important is taking the time to identify smaller goals along the way that will help you reach your big goals. Below is a general outline to help you set and stick to your financial goals in the real estate industry by developing good habits.
1. Determine Your ‘Why’
Before you set a financial goal, you need to understand what motivates you. Are you taking on real estate full or part-time? Are you trying to build a steady income from this revenue stream alone? Are you saving up for travel, a new car or house, or are you hoping to pay off the mortgage sooner rather than later? Identify what drives you to work each day. Goal: Set aside time to determine your ‘why’ and incorporate reminders for yourself to keep your ‘why’ top of mind. Schedule time every six months to a year to revisit your why.
2. Determine Your Time
Be honest with yourself about how much time you’ll have to devote to your work in the real estate industry. This will help inform how much money you can actually make with the hours you’ve allotted. Goal: Identify the number of hours you’re willing to give this endeavor and keep track of the time you spend. Revisit on occasion to see if you need to adjust your goals or your time.
3. Lead Generation
High-performing professionals in the real estate industry will tell you that lead generation is everything. They’re constantly forming new connections and putting forth the effort to stay connected in their communities so when the time comes, they’re the trusted agent. When goal-setting, remember to be specific. Saying you will pursue ‘more’ leads is not quantifiable. Goal: Identify how many new leads you want to secure per month or week. Push yourself to make as many connections as possible.
4. Revisit Expenses Regularly
It’s good in any business to keep an eye on expenses. Look out for any opportunities to cut costs with services that you rarely use or services you could invest in to help you save time. Goal: Set aside time once a quarter to review expenses and opportunities that may exist.
5. Network with Multiple Lenders
Staying connected to more than just one money lender will ensure you get access to the money you need when you need it. You don’t want to be left standing in the cold when your only money lender lets you down. Give yourself a better chance of closing every deal by networking with more lenders. Goal: Identify the number of lenders that is appropriate for your business and continue searching out leads to make the best connections to lenders.
6. Identify Short – Medium – Long Term Goals
Achieving your financial goals in the real estate industry will take a lot of hard work and smart planning. Ensure you take the time to develop short, medium, and long-term goals for your business and revisit them regularly. Goal: Set aside time each month to review your short, medium and long- term financial goals. When one goal is accomplished, add another and keep yourself motivated to cross the long-term goal finish line (until you add another!).
After developing and understanding your goals, make sure you are spending your time appropriately to serve those goals. Consider how your day-to-day tasks are supporting your overall vision. If necessary, keep a personal timesheet to track your time and review later. Goal: Spend time each month reviewing what was accomplished and what went unfinished. Consider how each month’s achievements ultimately serve your short, medium and long-term financial goals.
Keep the top of your financial goals of mind in your day-to-day and don’t forget to continue networking and learning from your peers in the industry. This outline is a great start to achieving your financial goals, but learning from a mentor about how to make it in your specific trade will be the most helpful in the end.