Similar to any other business, to succeed in real estate you needed to have a clear business plan for yourself. It’s very difficult to stay motivated and on the right path when you’re not sure where the path is headed or when you’ll arrive. Many investors buy real estate and hope things will turn out well in the future. Great real estate investors buy real estate that fulfills their particular goals and understand exactly what success looks like and when they will arrive. Here’s how you can become one of those great investors:
- Start with an end goal in mind. The best way to start your business plan is to visualize where you want to be at a specific point in the future. Some investors have a 10-15 year plans while others have shorter timelines and create 5 year plans for themselves. Neither is wrong but I like the idea of having a 5 year plan that you can complete and then recreate for another 5 years once you’ve reach those goals. Your goals should include real estate investment achievements as well as personal development, since these two things are in many ways directly related. Write down everything you want 5 years from now (personally and professionally) and think big!
- Work backwards! Now that you understand what the finished line will look like start to work backwards and break your 5 year plan into shorter manageable goals. Understand exactly where you need to be in year 4, 3, 2 and after year 1. I also like to take it a step further and break my goals down on a quarterly basis which allows me to step back and see where I am every 3 months.
- Develop your comfort zone. Your comfort zone (your niche) is where you will make your mark in the real estate industry. There are many types of real estate (including singles, multifamily, condos, residential, commercial) as well as many cities and towns to develop your niche. The decisions you make at this point are going to help you narrow your focus and become an expert in your market. You don’t need to know everything about all real estate to become and successful investor. You just need to master your specific niche! While one investor is an expert in single family investments in a few South Shore towns, another equally successful investor is mastering multifamily investments on the North Shore. Look back at your goals and choose the type of real estate and locations that will most help you reach those goals. Your task is to now learn everything you can about your chosen niche. The more you learn the easier it will be for you to spot opportunities in your particular market and to build your portfolio of investments.
- Constantly keep your end goals in mind as you follow your plan. Adjust your plan as your future wants and needs change but never scrap it. Remember to think big and stay focused. The most successful investors all have one thing in common…their ability to keep their eyes on the prize!