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Absolute 1st step in successful real estate investing. Set S.M.A.R.T goals

posted May 9, 2014, 12:09 PM by Aaron B Lewis   [ updated Nov 15, 2014, 5:52 PM ]

Specific

Goals must call for specific actions, behaviors or events to be successfully met. Individuals must define their desired results within each goal statement using a proactive voice. For example, "I will increase my savings deposits by $50 per week in order to fund my summer trip to Europe.” Goals should contain not more than two sentences and should establish what, where and why.

Measurable

Goals must be measurable to assure success. When setting goals, it is important to describe how each result will be measured. In our example we set clear steps and timelines. Our action step involves increasing deposits by an established amount. We set measurable tracking points by establishing a weekly timeline. If goals are not measurable, individuals cannot track their progress. Goals set successfully always answer the question “How can I measure my success?”


Achievable

Goals must be achievable. A person cannot become a doctor if he has not been graduated from medical school, nor can a business increase its sales if it does not have an advertising budget. In a savings-related goal like our example, a person must ask himself whether the goal is achievable with his current resources. When creating a goal, ask yourself whether you have the skills, tools and resources needed to achieve the goal.

Realistic

Taking a realistic approach is perhaps one of the most important characteristics of successful goal setting. Goals challenge us to achieve or attain what is important to us. For us to maintain motivation levels and avoid frustration, goals must also be realistic. In the example goal, if we could not afford to save the $50 dollars a week, then we would face hardship and would not reach our goal by summer. Realistic goals are honest goals. Goals established thoughtfully can challenge us, but are not set beyond our natural abilities. Setting realistic goals involves asking "Is this possible?”

Timely

Successful goal setting must set forth measurable points for starting, ending, review and assessment. A successful goal has deadlines and endings. In our example, we set a weekly period goal and an end goal of summer. Open-ended goals often fail because individuals have not have set dates to review, measure and revise.

So examples of  not SMART real estate investment goals

-I just want to buy cheap homes, for a few thousand each

- to buy homes that are occupied with renters and under $ xx amount 

-to buy homes that rent for no less then $600/met

-as long as they make me a profit.

(These are all actual goals that investors have shared with me and non are SMART)

Here is an example of  a SMART goal.

By Dec 31st 2016 invest in 5 SFR brick 1.5 story homes in the 48219 area code with an acquisition cost range of $1-30k, to hold as income property longterm (over 5 yrs) that will generate a NOI-Net Operating Income of $6,000/yr each.

Try to write a SMART goal and share it with others, especially experts, with a teaching attitude, who are doing exactly what it is you want to do. 


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