Tired of making the same old resolutions about finally using that gym membership? Maybe it’s time to shift your gears towards financial resolutions. Real estate investors are in a prime position to renew their efforts in the new year, riding the wave of resolve. But what should a passive real estate investor’s new years’ resolution look like?
Here are a few places to start!
The Most Effective Resolutions Are...
Before we get into the actual goals to set, we need to reiterate what makes goals effective. After all, we don’t want to wind up like the many people who fall off the wagon and return to their old ways before January is up.
The best goals are SMART goals.
S – Specific
Goals should be clear, concise, and well-defined. Instead of setting a broad goal like "Invest in real estate," make it specific, such as "Acquire a residential rental property in XYZ investment market."
M – Measurable
Goals should be quantifiable so progress can be tracked. Establish concrete criteria for measuring success. For example, if your goal is to increase passive income, specify the target amount or percentage increase. Define any KPIs for your resolution.
A – Achievable
Goals should be realistic and attainable. While it's good to aim high, make sure the goal is feasible given your resources, time, and current circumstances. Unrealistic goals can lead to frustration and loss of motivation.
R – Relevant
Goals should be relevant and aligned with your overall objectives. Ensure that each goal contributes to your long-term vision. For instance, if your primary aim is financial stability, a relevant goal might be to diversify your real estate portfolio.
T – Time-Bound
Goals should have a specific timeframe for completion. Setting deadlines creates a sense of urgency and helps you stay focused. Instead of saying, "I will invest in real estate someday," set a deadline like "I will acquire a rental property within the next 12 months."
As you read these resolutions, think about what will make them SMART in your context and for your financial goals!
5 New Years’ Resolutions for Real Estate Investors
Resolution #1 – Further Diversify Your Portfolio
One of the best things any investor can do for their portfolio is to make a concentrated effort to diversify. Diversification (in this context, acquiring more investment properties) furthers your streams of passive income and spreads out risk. For the investor, this can be as simple as buying one or several new properties over the next year.
If you’ve been taking a break from property acquisitions, now might be a good time to renew your momentum.
Resolution #2 – Master a Useful Tech Tool
If you’re a passive investor, you probably use the tools and technology you’re provided with for receiving reports and correspondence with your management team or portfolio advisor. That said, the tech space surrounding real estate is evolving all the time! Maybe you don’t need a new service – but it’s always good to learn about the options out there.
For example, AI-powered tools, augmented reality, and big data analytics are all transforming the real estate industry. Make it your goal to stay abreast of these trends – learning to understand them and trying out specific platforms and tools when you can.
Resolution #3 – Continue Your Investor Education
Passive investors may be able to rely on experts to get the job done, but that doesn’t mean you’re exempt from your part. Passive investors benefit from learning about this industry – it empowers them to ask better questions, vet services, and identify red flags. The more understanding you have, the better. Resolve to continue your education somehow. Maybe it’s a seminar. Maybe it’s reading finance and investment books. Maybe it’s buckling down and doing your own research!
Whatever it is, resolve to increase your capabilities in the new year.
Resolution #4 – Get Better at Networking
Too many real estate investors are trying to do it all without a real support system. You need people who can share their perspectives, reassurance, and warnings. You can learn so much from other investors, both through their successes and failures. Make a concerted effort to network – not only for potential partnership opportunities, but for people you can rely on to speak truthfully about their investing experiences.
Resolution #5 – Dive into a New Investment Market
If you’re going to work to diversify your portfolio in the new year, why not target a new market? Diversification happens through both the number of assets and their location. This year, resolve to investigate and identify new markets to grow into!
Need help crafting your real estate investment game plan in 2024? You’re in luck – our portfolio advisors are waiting to hear from you!