We’re a month into the new year – how are you doing with your 2020 Goals??
Now, it’s time to take inventory of those resolutions and, if you haven’t done so already, put them into action.
So besides resolving to lose weight, get in shape, and quit eating so many doughnuts, what are your Real Estate goals for 2020??
Here are 4 things you can do right now in order to reach your 2020 Real Estate goals in Boston.
1. Create a Plan
Until you have a concrete plan, those 2020 real estate goals remain mere hopes and wishes. Do some brainstorming and WRITE THEM DOWN on paper.
“A business plan should include your mission statement, marketing plan, company hierarchy, portfolio, and more. This information is relevant to SMART investing goals because as the framework of your business, these components should guide you as you make a plan of real estate goals.”
“SMART” is an acronym for these five clear, quantifiable, results-producing goals:
Do you want to purchase three multi-family residences this year? Is your goal a simple refinance of your current property or opening a HELOC on your primary home in order to generate available cash for your investment goals? Hoping to zero in on that perfect three-season vacation market and launch a few income-generating Airbnb properties?
Your mission statement will help you keep “goals in line with your motivation and purpose.” And then, you need to hammer out both your short-term and long-term goals – smaller goals that will keep you moving forward and those bigger, yet still attainable goals.
Such a business plan will help you achieve your goals. You will know where your destination is and the best route to get there.
2. Strive to Increase Profits and Build Wealth
Another important step toward reaching your 2020 real estate goals in Boston involves increasing profits, cash flow, and building wealth. This is so obvious that we sometimes miss it.
If you’re a real estate investor in Boston, you (obviously) want to increase your rental income so as to increase positive cash flow. The simple formula of “profit = revenue – expenses” governs this. So you can buy more rental properties, cut down on costs/expenses, and/or raise rents. That is, you increase profit by increasing revenue and/or decreasing expenses.
To reach this goal, experts advise one or more of these strategies. “You can increase your revenue by increasing rental income – and yes, that is something you can do. . . . The other way to increase your real estate profit is by cutting down on your expenses. . . . List all your expenses, and cut down the unnecessary ones. Your savings account will thank you later. The final option is to buy more rental properties. Investing in more than one rental property is definitely a challenge, but it is one that will yield revenue. So once you’ve secured your first investment property, start looking into the next one.”
If you want to deploy this last strategy (buying more properties), you will need a good agent like NextHome Titletown Real Estate with whom you can trust to partner, locate properties, and help you negotiate better prices. (To discover more, just call (617) 657-9811.)
And don’t forget diversification as an aspect of realizing your 2020 real estate goals in Boston, whether you’re looking to diversify asset classes or across a number of neighborhoods or local cities. The old saying about not putting all your eggs in one basket definitely applies in real estate investing. Diversifying may not be easy and may take longer than you’d like, but it simply has to be done in order to spread and reduce your risk.
“As an investor, you should attempt to invest in different types of investment properties and in different real estate markets. If you’re investing in an Airbnb rental property in Seattle,” for example, “diversifying would mean exploring the wider Washington State market (or further), and looking into different real estate investing strategies, such as traditional investments.”
Try not to diversify to the point of making your life and property management unmanageable.
4. Keep Learning
The need for learning and mastering new skills never ends. Researching, reading, and learning are most likely how you began your real estate career, and you have to keep it up.
Certainly, as the experts point out, you have to understand general housing market trends, but then you need to advance and “move on to more detailed real estate analytics.” Even if you do become an expert, the learning doesn’t stop because real estate trends are in flux and always changing, as well as the influencing economic factors and real estate regulations and laws. “If you don’t stay up to date, you can risk missing out on important information that could risk your investment. So always continue to research and stay up to date.”
So how are you going to keep up with and stay abreast of all that’s new? Well, you don’t have to – that’s what your agent is for. Your local agent who specializes in investment properties will be your long-term partner who will help you grow your business and succeed. Discover how our agents at NextHome Titletown Real Estate can help you reach your 2020 real estate goals in Boston. Contact us today! (617) 657-9811