As the new year approaches, it's the perfect time to set fresh goals and shape your investment strategies for success in 2025. Real estate investment properties offer exceptional opportunities to build wealth, but maximizing returns requires a thoughtful plan. Here are some key steps to help guide your investment property strategies and make 2025 your most profitable year yet.
Effective Goal Setting using the SMART methodology
When setting goals, ensure they are specific and measurable, creating clear milestones you can track along the way.
The Australian Investors Association suggests using the SMART (Specific, Measurable, Achievable, Relevant, Time-based) framework to establish effective investment goals.
Specific – Clearly define each goal.
Ask yourself:
- What am I trying to accomplish?
- How will I get there?
- What do I need to achieve this?
Here's an example: To build a real estate portfolio, I need to stop selling every fix-and-flip property and secure long-term financing on every 5th property I purchase. To do this, I will need a relationship with a lender that will not only fund my flips, but also finance properties for me over a 30-year period.
Measurable – Set metrics to know exactly when you’ve reached your goal.
Here's an example: Right now, I am fixing and flipping 5 homes per month. If I am to accomplish my goal of building a real estate portfolio by holding every 5th property (1 per month), then I will have accomplished my goal if I own 12 single-family rental properties at the end of the year. At the end of each quarter, I will look at my success or failure and continue or adjust.
Achievable – Ensure the goal is realistic and can be accomplished with practical steps.
Here's an example: If you are just jumping into single-family real estate investing, you might think: “I am going to buy one property per month!” While that doesn’t seem like too big of a stretch, there is a ramp-up time for any new business endeavor. A better goal might be: “I am going to set out to buy one property in the 1st quarter of this year!” From there, you can set your next achievable goal while keeping the ultimate goal of one property per month in the back of your mind.
Relevant – This is the "why?"
Make sure each goal aligns with your priorities.
Here's an example: Why do I want to build a rental portfolio made up of every 5th property that I purchase each month? Well, I have been making good money in my fix-and-flip business, but every year I have to restart the same investment cycle (aka: the grind). I want to keep investing in single-family real estate because I love it, but I want to build wealth and passive income while maintaining my fix-and-flip business. I’m not getting any younger and in 20 years, I would like to have a rental portfolio that could support my lifestyle should I choose to retire or work less.
Here's an example: Why do I want to build a rental portfolio made up of every 5th property that I purchase each month? Well, I have been making good money in my fix-and-flip business, but every year I have to restart the same investment cycle (aka: the grind). I want to keep investing in single-family real estate because I love it, but I want to build wealth and passive income while maintaining my fix-and-flip business. I’m not getting any younger and in 20 years, I would like to have a rental portfolio that could support my lifestyle should I choose to retire or work less.
Time-based – This is your determined deadline and keeps you from hanging onto goals indefinitely.
Here's an example: This week, I am going to call a lender to discuss long-term rental financing and learn what will be required of me as I look to secure long-term financing on my next single-family real estate investment. I will apply for credit this week and submit the requisite financing documents to the lender so that I am approved and ready when I find my next investment property.
The SMART method is a trusted approach to keeping you focused and on track with your goals.
The SMART method is a trusted approach to keeping you focused and on track with your goals.
JOURNALING to Success
Now that you understand how the SMART methodology to goal setting can facilitate your success, it's time to put pen to paper!Journaling is another powerful tool to reflect on your past, evaluate your present, and set a clear direction for the future. It’s a simple way to help refine your SMART goals or clarify your priorities. Here are a few journaling prompts to help you get started:
- Where am I currently in my investments?
Reflect on your journey so far. How many properties have you flipped? What progress have you made? Taking stock of your starting point allows you to plan your next steps. - Where do I want to go?
Define your goals. How many properties do you want to flip this year? What short-term milestones will help you reach your long-term goals? - How will I get there?
Consider the resources, mentors, and financial plans you’ll need. Use this space to brainstorm ideas before refining them into clear SMART goals. - What will it take for me to get out of my comfort zone?
Identify what growth looks like for you—whether it’s increasing transactions, expanding to new markets, or adding revenue streams. Define your next step, big or small, toward reaching the next level.
Ready to Make This Next Year Your Best Investment Year Yet?
With thoughtful planning and proactive strategies, you are positioned to reach those 2025 real estate investment goals. Set your sights high, track your progress, and stay committed to achieving your dream. We'd love to help kickstart your New Year’s strategy— schedule a meeting with a member of our team and take your first step toward a prosperous 2025!
