Looking for the playbook and step by step guide to achieve all your dreams and fulfill all your aspirations?!
TOO BAD! It doesn’t exist.
Your current situation and starting point, along with your specific goals and aspirations are completely unique to you. No two people have the exact same circumstances, let alone the exact same end goals. There is no step by step path and clear roadmap to get you from where you are to where you want to go because every path is different. The only way it can exist is if YOU create it.
WHAT IS YOUR END GOAL?
I get a lot of people that reach out asking what they should do and where/how they should invest. That’s an impossible question because there is no singular answer. No one has said it better than author Lewis Carroll in the book Alice’s Adventures in Wonderland:
“Would you tell me, please, which way I ought to go from here?”
“That depends a good deal on where you want to get to,” said the Cat.
“I don’t much care where–” said Alice.
“Then it doesn’t matter which way you go,” said the Cat.
You have to know where you are going. If you don’t know where you’re going, any road will get you there. What is your ultimate goal with real estate investing? You must start at the end! There is a wide variety of potential goals such as:
- Have some supplemental income to increase your lifestyle now.
- Get out of your job as quickly as possible and become an active real estate investor.
- Achieve financial freedom from the passive income and retire. If your goal is retirement, how do you want to retire? What income do you need for that?
- Have rental properties to pay for your kids’ college.
- Maybe you like your job and career trajectory and simply want to build wealth.
- Have a private jet and travel the world in luxury.
Those are just a few examples. Your goals may be completely different or a combination of many things, but knowing your ultimate destination is the first step.
THE IMPORTANCE OF WHY
Knowing your end goal is an important step to guide your direction. But perhaps even more importantly, you need to know WHY you are pursuing it. WHY is that your goal? What do you hope that will bring you in life?
The difference of having a real “why”:
- John Doe’s goal is that to have millions of dollars, a Lamborghini, a yacht, and a baller collection of high end watches. John has probably never even thought about “why” he has that goal. He probably just sees some photos on Instagram and envies their stuff. He wants to be insta-famous and have people envy him.
- Jane Doe has a goal of getting out of her job as quickly as possible and be an active real estate investor. Jane’s “why” is because she wants to be able to attend all of her kid’s sports games and recitals, but her current job requires long hours and is inflexible.
Who do you think will actually get started investing and be successful in it? Having a goal and knowing why it’s your goal is paramount to your success.
Check out the post What Do You Really Want?
ASSESS YOUR CURRENT SITUATION
Your current position in life, along with all of its contributing factors, is unique to you as well. Here’s a short list of just some of the variables that are factors in determining your best path:
- Strengths and Weaknesses
- Current Savings
- Ability to Save More
- Personal Credit
- Monthly Income
- Monthly Expenses
- Job Satisfaction
- Career Trajectory
- Hours Work Per Week
- Skills (are you handy? a good networker? etc)
- Your Local Real Estate Market
- Married or Single
- Kids or No Kids
Take a full account of exactly where you are at this exact point in time.
Ok, so you have your end goal, you know your why and you have an accurate assessment of your current situation. Now it’s time to start researching. There are countless ways to make money in real estate. In this level of research, you should be striving to understand all the theory of each type of investment and the pros and cons of each.
Shoot for a broad overview of all investment types. Just try to understand the concepts and strategies. Don’t overload yourself with the minutia and details at this point. See which ones are possible in your exact personal situation at this point in time. Finally, estimate what type of real estate portfolio best matches your ultimate goals and how much it will take to meet those goals.
Check out the post: Lifestyle and Numbers
After determining what your real estate portfolio would need to look like in order to match your ultimate goals, you can work backwards to your current position. You know what types of investments are possible, and what types match your ultimate end goal. Now you can create your personal roadmap for success to take you from your exact location to your exact destination.
- Start at the End – figure out what your personal end goal is.
- Know your “WHY”
- Assess your current situation
- Research – look into all the different paths to make money in real estate. There are MANY different types of investments, strategies, and structures. Every one of them can work, but they won’t all work for everyone.
- Determine which types of investments, strategies, and structures are possible for your current situation
- Determine which type (or combination of types) makes the most sense to support your end goal.
- Reverse Engineer – work backwards from the end goal to your current position in life and create your roadmap.
Make it a point to learn something every day. Whatever it is, no matter how big or small, make a step in your education every single day