Setting Goals for the New Year

It's the most wonderful time of the year - the holiday season is upon us and the year will come to a close before we know it. We have all tried to stick to those New Year's resolutions, but how often do we fail? A few years ago, I decided to forego the negativity of New Year's resolutions and start focusing my year on my goals. In this December issue we discuss realistic goal setting to format a plan for success in 2008.

Make sure you are setting a goal you truly want to accomplish - this sounds simple enough. In real estate investing, it is important to have a lot of knowledge in your investment niche. For example, if you set a goal this year to start investing using short sales (this is a very popular strategy due to the current preforeclosure market) make sure you have working knowledge of the short sale process. You should ask yourself whether you really want to pursue this or are you jumping on someone else's bandwagon?

Aim high - Even if you do not reach the entire goal, if you are serious and work hard to attain your goal you will still accomplish a large portion of what you set out to do.

Write down your goals - they should be as detailed as possible without any negative connotations. For instance, you write, "I want to make $250,000 this year in real estate." This is a general goal without much detail on how you will accomplish it. To be more concise, "I want to invest and flip a minimum of 12 houses this year in Anytown, USA with a minimum profit on each transaction of $20,000."

Keep your goals to yourself. You may encounter negative feedback from others (like fellow investors, family or friends) who do not share your philosophy. You should share your goals with your mentor or coach if you have one. They can steer you in the right direction and help you to achieve your goals and keep you in a positive frame of mind.

Are the decisions you are making helping to achieve your goals? - Before you make final decisions, you should always pose this question to yourself. If the decision is going to bring you further away from achieving your ultimate goal, you should rethink that decision. It sounds easy, but people often make decisions on the spur of the moment without thinking through the process.

Review your goals often. - It is important to review your goals on a regular basis so you can measure each small success. Making a few mistakes along the way is part of the process and will help you to hone your goal-setting skills.