Let’s talk a minute about goals, specifically goals for rehab investors. There is a great quote which says “In the absence of clearly-defined goals, we become strangely loyal to performing daily trivia until ultimately we become enslaved by it.” – Robert Heinlein. That is what can happen to so many rehab investors. They get so caught up in activity that doesn’t really move their business forward that they never reach the goal of actually flipping a property for profit.
So first, one of the things I think any rehabber should do is develop a dream team, which includes people who are going to help them reach their goals. Find good contractors, sub contractors and real estate agents. Try to establish relationships with those that can help any potential buyer for your property in obtaining a loan.
I also think that if you are just getting started, or even a seasoned investor, you should set specific goals of how many deals you want to complete by the end of the year. Break this down into how many properties are you going to rehab and sell for profit in the next six months. Have a solid number for which you are aiming.
Another goal you want to set is the average profit you are looking to make from each property. Of course you’re going to want that to be as high as possible, but you’ll need to set a realistic and well researched goal. You will also want to set goals for the amount of time you will allot for each deal, so that you have some timelines to follow.
Establishing some relationships with hard money lenders is an important goal you want to accomplish as well. A good lender will help you meet your goals and deadlines. Because Do Hard Money doesn’t require monthly payments that can go a long way in helping you stick to your timeline and profit goals.
Make sure everything you do moves you toward your goals, rather than wastes your time. Don’t get caught up in the daily trivia.
What are your current real estate goals? Are they specific goals for rehab investors instead of just broad or vague goals? Comment below.