Financial goals for a real estate business can range from the utterly useless to the invaluable. For every ground breaking goal that elevates a business to a higher level, there are several poor aspirations that are otherwise miscalculated, and it’s absolutely imperative that you (as a real estate investor) are able to differentiate between the two. If for nothing else, an ill-advised goal is counterproductive, and perhaps even destructive to what you hope to accomplish. Financial goals for a real estate business that actually better your career, however, can’t be underestimated. It’s through setting the right goals that real estate investors are able to better themselves and their businesses.
If you are currently trying to decide which financial goals for a real estate business are worth pursuing, may I recommend those that build on the foundation of your career. While there is no reason you can’t set some surface-level goals (like making a certain dollar amount on your next deal), I am convinced that setting goals that are more likely to solidify your foundation as an investor are exponentially more valuable. Financial goals that will point your business in the right direction are invaluable, and can contribute to your success for years to come.
The Best Financial Goals For A Real Estate Business To Consider
Generate More Leads Than Ever Before
As a real estate investor, your mission —should you choose to accept it — is to acquire and sell as many deals as you possibly can. That way, you are sure to make the most of your opportunities. It’s worth noting, however, that deals don’t simply make their way to the timid. If anything, it’s those investors that put themselves out there to acquire leads that find the scales tipping in their favor. And therein lies the secret: closing real estate deals is a numbers game. Those that can generate more leads are most likely going to realize more success on the deal front.
Real estate business goals should be easy to decipher, and even easier to execute. The more specific, the better. That’s why it’s not enough to simply say you want to close more deals — deals are ultimately the result of something else. I maintain that generating more leads should be your first inclination, as leads are the surest way to increase your acquisition rate. And while everyone may have their own number in mind, the best thing you can do is to continue improving; simply set a goal to generate more leads than you ever have before. If you managed to scrape by with 10 leads last year, commit to getting more in the following year. It’s not necessarily the number you should concern yourself with, but whether or not you are able to create more leads than previous attempts.
In generating more leads, you will find that your odds of closing a deal increase exponentially. Remember, it’s all a numbers game. If you can generate more leads than last year, who is to say you won’t end up with more deals on the closing table? There is only one way to find out. Now is the perfect time to ramp up your lead generation strategies.
Cut Unnecessary Expenditures
Some of the most important financial goals for a real estate business have nothing to do with making money at all, but rather saving it. In fact, you could argue that saving money is just as important as making it, and you wouldn’t be wrong. The two go hand in hand; you can’t have one without the other (not if you want to maintain your position as a successful real estate investor).
I maintain that some of the best financial goals for a real estate business are centered around cutting unnecessary expenses. It’s entirely possible to increase your bottom line by ridding yourself of costly expenses that do little to bring in any capital. Having said that, your expenses should be geared toward maximizing your return on investment. In fact, every dollar you spend should not only be accounted for, but also spent with the intention of making more. Now is the time to rid yourself of those costs that aren’t contributing to the success of your business. Perhaps doing so will require you to cut ties with an underperforming marketing strategy, or better yet, one that hasn’t proven capable of delivering results at all.
At this time, I want you to evaluate where all of your money is being spent and whether or not it’s worth it. Of course, you have to spend money to make money, but there is a fine line between your return on investment and a complete waste of capital. That said, I want you to eliminate the costs you deem unnecessary; if the expenditure doesn’t warrant the results, it’s time to move on. This could mean using different materials in your next rehab, or something as simple as switching to a water delivery service in your office. There really are countless ways to cut costs; just be sure that the ones you do decide to cut ties with are really unnecessary.
Align Yourself With More Lenders
Of the financial goals for a real estate business, none may be more important (or carry with it more implications) than access to funding. If for nothing else, a real estate investor void of capital is essentially a glorified spectator. Regardless of how hard you have worked or the amount of due diligence you put into a deal, you are utterly powerless without access to money. Not surprisingly, it’s money that will take you to the finish line faster than anything else, and those with it have a clear advantage.
With that in mind, it is in your best interest to secure funding opportunities with every chance you get. It’s not enough to align yourself with a single private money lender or traditional lending institution; you have to give yourself multiple options. That way, you are more likely to receive the cash you need at a moment’s notice. In lining up more than one lender, all you are doing is giving yourself better odds of closing a deal — consider it a contingency of sorts.
If you are looking to adopt some financial goals for a real estate business, you could do a lot worse than lining up potential lenders to work with on future deals. In fact, I want investors of every caliber to commit to seeking out additional lenders. That way, you give yourself the best odds of closing on a deal when time is literally of the essence.
Financial goals for a real estate business are of the utmost importance. It’s worth noting, however, that not all goals are created equal. It’s in your best interest to set goals for your business that will have the best impact now, and well into the future. And, for what it’s worth, those I mentioned above are a great place to start.