HMW #135: 3 goals all real estate investors should setJan 03, 2024
Read Time: 4.5 minutes
Our favorite sponsors who help keep this content free for you:
Today's issue is sponsored by Jasmine Mortgage Team my preferred residential lender. My team and I have done over 83 deals directly with Jasmine and her team. Work with someone that understands real estate. Book a free 15-minute consultation with Jasmine today.
Effortlessly track, monitor, and optimize all your investments, not just real estate, with Vyzer's Wealth Management Assistant. Say goodbye to spreadsheets and hello to streamlined portfolio management. A one-stop shop for your personal finances. Start Free Today.
It's the New Year and real estate goal planning should be at the top of your to-do list!
If you aren't sure what your goals should be, don't worry! I (Alan) am going to share 3 evergreen real estate goals for investors of all levels. Even if you aren't a goal setter by nature, these should be fairly easier to conquer and track your progress so that you become an active investor (in a good way) rather than a passive investor (in a bad way) watching the world go by.
Are you up for it?
That's the enthusiasm I'm looking for! Or are you mocking me? I'll take it either way....
Goal 1: Identify your why
Why are you investing in real estate? "Getting rich" is not a goal, but it's what we hear most often. What is rich? When will you feel rich? How do you track rich?
Make your goal specific and time-stamped so you can actually track your progress. Some examples:
- I want to have $10,000 in passive income in the next 5 years so I can retire.
- I want $2,000 in rental income in 1 year so I can reduce my work hours to part-time.
- I want to purchase an income property in the next 90 days.
We get more into this goal planning in both our online course as well as my "House FIRE [Financial Independence, Retire Early]" book, but with a specific goal you know if you are on track and staying focused. And we even an episode on our podcast about real estate goals too.
Goal 2: Shout your buy box from the rooftops
Your buy box should be rock solid and clear to you. If it is clear to you, it's going to be clear to others. And agents, for sale by owners, and investors will bring you deals because you are someone who knows what they want.
Your buy box should include the following:
- Strategy (short-term rental, long-term rental, flip, new construction, etc.)
- Product type (single, small multi-family, commercial, etc.)
- Location (neighborhood, zip, school zone, etc.)
- Budget (purchase price maximum)
If everyone you talk to knows your buy box and you are following all the comps in your specific buy box and not distracted looking at every deal under the sun, you'll recognize deals immediately.Let us know your buy-box by tagging us on social media (IG or X) and we can share it to the world for you. You can confidently say yes or no to these offerings and move on to the next as the deals come to you, rather than you hunting them down yourself.
Run the numbers often in your buy box to recognize a good deal. Even if you aren't buying, it's good practice to see what the numbers look like for others that are buying. You want to get so comfortable in your buy box that you could theoretically make a decision sight unseen on a property because you are that in tune with your purchase criteria and what the market data is telling you.
I like that. But more importantly, be on the same page with your buy box! And then post it on social media, tell every real estate agent, and put it in the ear of other investors. The best deals always come to those narrow-minded buy box investors who can make quick decisions.
Goal 3: Build a lender relationship
You know how to recognize a good deal in your buy box now, you know why you are investing in real estate, and the last thing you need to know is how you are going to pay for it.
Lender products change all the time. Interest rates change all the time. You need to be building relationships with your money partner just as much as you are with your agents, contractors, and other investors.
Book an appointment with at least 3 lenders: residential, commercial, and hard money. They would LOVE to hear from you. They are all in the business to find a way to lend you money no matter what your circumstances are. Our favorite residential lender for single-family and small multi-family is our sponsor Jasmine Mortgage Team, who I (Alan) personally use on all my own deals.
Lenders are your passive investment partner, so include them early and often, even if it's before you've found a deal so they can assist you quickly when the deal of the lifetime falls in your lap. They can certainly help with the budget part of your buy box.
We all do! So use goal setting to set yourself up for success, then report back!
- Goals need to have a "why" and be specific and time-stamped
- Nobody knows what deals to bring you if you don't know what deals you want yourself
- Your team must include a money partner, which is often lender. Start that relationship now!