The first step to any successful venture is to set goals. However, for majority of us, setting goals of any form is challenging. The process of setting goals can be daunting but it should not deter you from defining small, actionable steps which will assist you to reach your investment goals.
The SMART method of goal setting is the way to create structure and do-able actionable steps that will build your property portfolio. All investment goals must be SMART: Specific, Measurable, Achievable, Realistic and Time-Bound.
In general, real estate investing is a very broad term. There are different types of real estate (residential, commercial, industrial) and investing strategies (buy and hold, flip, REITs, crowdfunding). In order to be a successful real estate investor, narrowing down the type of real estate and the strategy you would like to focus on is important. Without specific real estate investment goals, it will be hard to choose the best real estate investment deal that fits you.
Everyone wants to earn more money and earn a return on investment. In order to do that, you need to set measurable goals that can be quantified. An example would be: “I want to invest in commercial properties with at least 5% annual rate of return.” When you set measurable goals, you will be able to see if you are on track and will be able to adjust your investment strategy to achieve your end goal.
To achieve your investment goals, you need to define goals that are within your reach. Setting unrealistic and unachievable goals will only set you up for failure.
Investment goals need to be realistic. As a real estate investor, you need to take evaluate your resources (for example, time and money) and define your investment goals accordingly. Do not set impossible and out of reach goals such as building a strong property portfolio in 3 months.
Setting a time-frame for all investment goals is vital in order to achieve them. With a time-frame (weekly, monthly, yearly), you can work your investment plan backwards and set specific, realistic and attainable goals.
All successful real estate investors go through the process of setting goals to achieve their desired outcome. Although setting investment goals using the SMART method can be tedious and time-consuming, it is vital as it helps you to narrow down what to focus on and to develop a well-planned strategy to accomplish your investment goals.
All information in this article is correct to the best of our knowledge and belief at the time at which the article was originally published.
This article was written in the author’s personal capacity. Any opinion expressed in this article are the author’s own and
do not reflect the view of Vivaz Capital Pte Ltd.
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