by Lolita Sheriow
Real estate investing is about more than numbers. It flows from a state of mind. The most successful real estate investors often become so because of an ability to maintain balance. They maintain it not just in their bank accounts, but in life in general.
Part of achieving that balance comes from goal setting. Goal setting is critical not just in business, but in everyday life. Life coaches regularly advise followers to set financial, physical, personal development, family and spiritual goals. Those goals become a person’s motivation for everything they do in life.
Goal setting brings meaning and order to day-to-day living. Now apply this idea to real estate investing. Real estate investment goal setting gives an investor a clear picture of what he or she wants. It also provides the investor the vehicle with which to achieve those goals.
One key aspect of goal setting is writing those goals. Goals are more likely to be achieved when written down. Writing goals provides a tangible, visual and interactive reminder of what is important to a person and why. The same thing applies to real estate investing goals. Real estate investors should start by determining the motive for buying real estate.
Ultimately of course, the goal is to make money. However, an investor should decide why he or she has chosen to use real estate as a vehicle for making money. Some examples of motives for real estate investing may be:
* To garner a livable income in order to quit a current job
* To earn extra money (for a dream vacation, to purchase a better home to live in, to save for a child’s college education, etc.)
* To improve economic status
* To capitalize on an interest in home improvement
* To be one’s own boss
Identifying the true reason for pursuing real estate investing as a means to profit will keep investors motivated. Writing it down will solidify their resolve and become a guiding reference point.
Investors should then apply this goal to the following points:
* Cash: How much cash can I get out in the refinance?
* Cash flow: What will the cash flow be?
* Equity: How much will my net worth increase after I purchase the property?
Investors should run the numbers to add up these three items for every property they are considering. In other words, an investor may have ,000 equity in a property. The cash flow is break even. This means that the return on the equity is zero.
A property in a case like this should be sold. The equity should instead be invested somewhere else to get a return on the money.
Real estate goal setting is a powerful tool for keeping investors on track. real estate investing efforts are sometimes fruitless and even produce loss due to the emotion involved. Goal setting can help offset this variable. It offers an objective perspective when comparing the bottom line with the emotions surrounding an investment.
It also helps ensure that an investor’s work isn’t for naught. No investor wants to work at climbing the
ladder only to realize it’s leaning against the wrong tree.
Lolita Sheriow is a Real Estate Investor and Network Marketer who works from home and helps people nationwide expand their real estate investing strategies and techniques. Find out how and get a FREE report at http://www.buybigprofithomes.com/
Article Source: ArticleSpan