Real Estate Goal Setting – Factors that Determine Your Investment Goals
They saying, “If you fail to plan, plan to fail” can be applied to real estate, and the importance of setting goals as you invest. Being alert, guided, and guarded is foremost in real estate investing. Once you have decided to invest in real estate, you need to set strong and reasonable goals to have a successful real estate investment portfolio.
If you are a novice investor and wants to just test waters of the real estate investment world, then you would normally start off with a five year goal plan.
Investment goals are contingent on the objective of whether the investor is investing for maintaining a regular cash flow or to resale.
If you fall under the first category, that is to maintain regular cash flow, then the following should be considered in the draft of your goals.
Property Manager: Hiring a professional property manager a good way to start.
Self-sufficiency: A good investment will take care of itself. The right mortgage coupled with the long-term and credit-worthy tenant will pay for your investments and will even give you a regular income.
If the goals are for an investment made purely for the purposes of resale then:
Having a keen ear and sight is important: Since the transaction with resale involves buying properties at discounted prices, rehabbing and reselling at higher prices, the investor needs to understand the market climate, areas to invest in, places to target buyers inside out.
Maintaining reduced costs is the solution: Properties need to be well-maintained, as they are meant to be sold in a short span of time. So the investor here has to be adept in having the repairs done at low costs so as to increase his profits.
It is advisable to have a quality real estate professional to handle your portfolio in the beginning stages of your investment. Once you gather wind, you can be on your own and take care of your investment goals.