New Year’s Resolutions have fallen out of vogue in recent years. We can understand that to a degree. Many resolutions are too lofty to be attainable or sustainable, resulting in disappointment, disillusionment, and the distinct impression that resolutions don’t work.
But we’re not so sure. It’s far more about how you make and keep your resolutions than the goals themselves.
How to Make Resolutions That Work
If you’re going to keep reading to learn some of the transformational resolutions passive real estate investors can make in the new year, you also need to know how to make resolutions that stick. We like the SMART strategy.
S – Specific
Vague goals lack clear direction and the structure needed to make it happen. Instead of resolving to “save money,” make it specific: save $5,000 by May 30th. From there, you can break the goal down into achievable action steps.
M – Measurable
Does your resolution allow you to track progress? Understand your terms and relevant metrics. You’ll stay more motivated if you see tangible evidence of your hard work.
A – Attainable
Now, we don’t want to tell you not to dream big. But making those dreams into reality sometimes demands breaking the dream down into more manageable parts. You’ll be prone to burnout and discouragement if you’re overly ambitious.
R – Relevant
Whatever goals you set must align with your overarching long-term plans and values. You’re more likely to stay committed to resolutions that align with your broader passions and purpose.
T – Time-Bound
Set a hard and fast time limit, even if it’s totally arbitrary. The deadline motivates you to get the job done rather than procrastinating. Treat your resolution like any necessary task.
With SMART goal-setting in mind, here are eight resolutions we suggest for passive real estate investors, regardless of your experience or circumstances.
8 Meaningful Resolutions for Passive Real Estate Investors
Resolution #1 – Enhance Financial Literacy
- Commit to reading one book or taking a course on finance or investment strategies each quarter. Don’t ever make the mistake of thinking you know everything there is to know.
- Stay updated on tax laws and strategies to maximize real estate deductions and credits. You might schedule a time to sit down with the IRS website or consult with your CPA.
Resolution #2 – Diversify Your Portfolio
- Explore new markets or asset types to further your portfolio diversification.
- Consider investing in properties in different geographic areas to reduce market-specific risks.
- Resolve to acquire x amount of properties this year in the suitable markets you’ve researched.
Resolution #3 – Strengthen Due Diligence Practices
- Create a checklist to evaluate property managers, partners, contractors, and potential deals more effectively. Leverage your experience to inform checklist revisions over time.
- Review market trends, local economies, and property performance metrics. Set aside a specific amount of time each day or week to dedicate to this research.
Resolution #4 – Automate and Optimize
- Use technology to simplify portfolio management and finances (for example, investment tracking apps, finance apps, or automated reporting tools).
- Review and renegotiate contracts to ensure efficiency and cost-effectiveness. Learn how to better interpret data to achieve desired outcomes.
Resolution #5 – Reemphasize Long-Term Goals
- Revisit your financial goals and align your investments to ensure you can achieve them. Goals change over time, and unexpected things can happen. You want to be sure your goals still serve you in the present.
- Set clear targets for cash flow, equity growth, and debt reduction based on what you wish to achieve. Determine which metrics matter most to you.
Resolution #6 – Expand Your Network
- Join at least one new real estate investment group or forum.
- Connect with at least one new real estate investor in your area – someone you can meet up with semi-regularly.
- Attend industry conferences or meetups to build connections with other investors and professionals.
Resolution #7 – Prepare for Market Uncertainty
- Build a larger emergency fund for your investments to handle unexpected repairs or vacancies. Scale it with increased acquisitions and equity.
- Review insurance policies to ensure adequate, relevant coverage for your properties. Consider emerging risks and whether or not you need additional policies.
Resolution #8 – Commit to Ongoing Education
- Follow real estate blogs, listen to podcasts, or subscribe to newsletters focusing on passive investing. Explore new options or catch up on old standbys.
- Develop a routine for continuing your education. Reading after dinner, listening to a podcast on your commute, etc.
Let THIS be the year you take the jump into real estate investing. Your REI Nation advisor is waiting to help you get started!
