10:15 AM, 9th August 2024, About 3 months ago
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Setting a SMART goal and having a step-by-step strategy is the first thing anyone looking to invest in property needs to focus their attention on.
SMART stands for Specific, Measurable, Achievable, Realistic, and Time bound. It’s crucial to be precise with your goal and to have a step-by-step strategy in place before getting sidetracked by anything else.
Let me ask you this: If you wanted to visit a place of beauty that you heard about from a friend, but you didn’t have a name or know exactly what was there, nor did you know the best route to take, how successful do you think you would be in ending up in the right location if you just hit the road and had a go at finding it? I dare say pretty unsuccessful.
Have you ever taken to the open road without a named destination in mind, with no sat nav or a road map? If not, why not? If so, did you end up in the best, most perfect location for you? And if by chance you did, did you get there in the most efficient way possible?
Nine out of ten new property investors don`t have an exact destination in mind and have not planned their route using a map, and therefore they fail. If you don’t know where you are going, how will you ever know if you have arrived?
Easy, write it down. You can start by answering this question: What do you want to achieve from investing in property? Don’t overthink it. Don’t try to make it your best work; just write it down.
Now, take that sentence and rewrite it to make it very Specific.
S – Specific
Let’s use an example that you may have written down: “I want to give up my job and use the money I make from property income as a wage.”
When you rewrite the sentence, drill down and go more granular to create something like this: “I would like to achieve a passive net income of £2,000 per month generated from rental income. This income will replace my current wage, and I will leave my current job.”
M – Measurable
How will you know when you have achieved your goal? You might write something like this: “For me to hit my goal, I will consistently (for more than three consecutive months) receive £2,000 passive net income on a monthly basis. The money will be generated from rental properties only. I will have quit my current job and be relying solely on income generated from a property portfolio.”
A – Achievable
Is your goal achievable? You could write: “From my research, a single let Buy To Let investment property costing £100,000 in my area can generate £500 net income per month. I will need to own four Single let Buy To Let properties that generate at least £500 net income per month. I will need approximately £120,000 for deposits and costs. I can release £200,000 of equity from my residential property that will provide the funds I need.”
R – Realistic
It’s important to do your research and ensure that your goal is realistic. Ask questions such as: Has it been done before? Is my research accurate? Do I have the funds? Do I have the time? Can I do what is needed? You might write: “I know more than five people who have achieved this exact goal in the area I am considering. My time frame, current financial situation, and abilities will allow me to achieve my goal. I do need to find the properties and understand the best ones to buy, where to buy, and how it all works.”
T – Timed bound
How long will it take you to achieve your goal? You could state: “I will achieve my set goal within the next two years. This means I will need to acquire at least two new properties per year. My last day at work will be on 12.12.26.”
And there you have it. Now you have a goal. In this example, the investor is looking for single let Buy To Let properties costing a maximum of £100k that will generate a minimum of £500 net income per month. To achieve this goal, two properties a year are needed over a two-year period. The investor has the time, the funds, the ability, and the set goal has been achieved by others.
Next up is where the magic really happens. You now have a destination; you know exactly where you want to go, but how on earth are you going to get there?
Simple. You put a “route” or a strategy in place that will give you a step-by-step guide on how to achieve your goal.
And so on…
You now have a roadmap and a step-by-step strategy to follow. The best out there only ever do activities and work that will get them closer to achieving their goal. It’s very easy to get sidetracked by shiny new and exciting opportunities. However, by referring back to your SMART goal and step-by-step strategy, you will be able to quickly get your mind back on track and remind yourself what it is you need to focus on.
If you would like my tried and tested step-by-step strategy that will help you purchase a safe and profitable single let Buy To let investment property whist avoiding all of the common pitfalls and costly mistakes you can sign up to my Buy To Let Blueprint – Becoming An Investor online course below.
Click Here for the online investor course
Good luck and happy investing!
