Plan for Success

Where do you want to go? This may seem like an odd question but ask yourself, where do you want to go? You have to have a destination before you start a journey. This way, you have something to go towards and something to look forward to. The same is true for real estate in that you must have a plan with a goal in mind. A goal provides you with the end destination and all you have to do is put together the path on how to get there. You don’t have to know exactly how you are going to get there but it is important to have some understanding of it. Don’t know where to start? No need to worry. I will share with you how I plan on answering the question of where I am going.

One of my favorite real estate books by Brandon Tuner called The Book on Rental Property Investing has a section about goal setting and asks the same question on where you want to go. Brandon does an excellent job of explaining this process and I would like to share the steps involved in the process of getting to where you want to go.

First off, it is important to understand that life happens and goals change. This plan will develop as time goes on but it is important to start now and get an understanding of what you want to do.

1. State your ultimate goal. Be specific.

What do you want to accomplish with real estate? Do you want 300 properties in 20 years or would 3 properties do the trick? This is up to you and what you want out of life.

2. State your why.

Why are you doing real estate? Do you want to spend more time with your family? Maybe you hate your job and don’t want to work another day in your life. Get specific here too!

3. What kind of properties do you want to purchase?

Do you want to buy single family homes? How about a 4 unit? This question will get you to think about what you want your portfolio to consist of?

4. How often are you going to purchase?

Come up with a plan of how often you will purchase a deal. Are you going to buy a property every 2 years or will it be 2 it one year?

5. How are you going to finance your deal?

What financing will you use to build your real estate portfolio? Are you going to use traditional bank financing or will you use more creative strategies to fund your deals?

By creating a plan you are much more likely to accomplish your goal. Print out your plan and hang it somewhere where you are going to see it often. Making it visible will allow you to constantly see it and be more likely to take action. I’d like to end this post by sharing my plan. I hope you can use this information for your own good and to plan for a successful future!