What is Your 2021 Real Estate Investment Plan?
Even with all the unique challenges in 2020, we hope you had a very successful year as a real estate investor. Now, it’s time to look ahead to 2021 and beyond!
Some of you may have already started building your real estate investment plan for next year. It really is never too early to start annual planning. If you haven’t started your plan—or didn’t plan to have a plan—then you will want to start making moves now.
Here are some investment planning tips from PropertyLark:
Have a Plan
The first and best tip we can offer is to have a real estate investment plan. Though you can never quite plan for everything that will happen during a renovation or property sale (or rental if you are a buy and hold investor), you can still outline a strong real estate investment plan. How many properties do you wish to acquire? How many do you need to buy and sell/rent to reach your profitability goals? What market(s) will you be targeting? These are all good questions to ask yourself (among many other important planning questions) as you prepare to have a successful year ahead.
Set Your Investment Goals
The basic planning questions above should help you in setting your goals. For 2021 to be a good year for you as a real estate investor, how much would you need to earn in profit? Are there other goals you would like to achieve, such as new skills, earning your real estate license, getting contractor certification, etc.? Set some specific goals that will keep you motivated and focused on your objectives throughout the year.
Work Backward to Create Action Steps
One tip that any successful business planner will recommend is to work backward from your goals to create a solid action plan. What will it take you to get from point A (where you are now) to point B (your specific real estate investment goals)? Start building your plan to reach realistic, achievable milestones along the way as you work toward your goals.
Follow Your Investment Plan
Now that you have a plan, you need to follow it. You must stay motivated by your goals and stick to your action steps in order to achieve them. Stay focused and vigilant to avoid getting off track along the way.
Adjust Your Plan or Goals as Needed
We all know that things will happen along the way. Your smaller goals and overall priorities may change, or your action plan may not be taking you exactly where you expected to go. Other issues can pop up that derail your original plan. This is okay. As real estate investors, we must expect the unexpected. You should review your goals and action plan regularly. Then, make adjustments as needed to keep you focused on what matters and working toward your bigger picture goals.
Track Your Progress
A key part of investment success is tracking your progress and making sure your investment plan is staying on track. This is why it is helpful to set smaller milestones and specific action steps along the path to achieve larger real estate investment goals. You can see when you are headed in the right direction and you can also see when you might be starting to drift off course. You can then more effectively correct and adjust your path as needed.
Celebrate Your Success
One of the most important things you can do to stay motivated is to celebrate your successes along the way. As you reach new milestones and complete specific action steps, find a way to reward yourself or your team. It feels good to recognize your achievements and it will help you stay focused on success throughout the entire process.
Start Planning Early for the Following Year
Goal setting and investment planning is important to do every single year (maybe even more often for some who prefer to develop quarterly plans). Don’t wait until January 1 to start thinking about it. Don’t even wait until December next year. The holidays are full of distractions and developing a good plan takes some time. Start thinking about your 2022 plans in October or November, maybe even sooner if you prefer. Be as prepared and proactive as possible. Your goals will get bigger each year and your ability to achieve them will keep improving with practice.
Join a Real Estate Investment Network
Consider joining a real estate investment network like PropertyLark to help you with certain aspects of your investment plan. We can help streamline the property search and analytics processes, so you are able to find the best on- and off-market deals that will help you achieve your specific property investment goals.
You must qualify to join the PropertyLark home buying network. Click here or hit the button below to visit our buyer’s page and start your application process.