One major factor when planning yearly goals is gathering, and then making the most of, information in order to make the best possible decisions. The real estate market is constantly shifting, with changes in policies, interest rates and economic trends shaping the months to come. As such, professionals looking to stay ahead of their competitors need to stay up-to-date on current events and market trends in order to make the best real estate decisions.
However, with so many data points to choose from, focusing on the right factors for future success can be difficult. To help you decide which areas to keep in mind when making decisions, we asked members of Forbes Real Estate Council to discuss the key factors and top strategies for planning out yearly goals in real estate. Here’s what they said:
Members discuss factors to keep in mind when establishing real estate plans or goals for the year.
Photos courtesy of the individual members.
1. The Cycle
The key thing to remember is that real estate may go to sleep but will never die, so don’t let talks about any future recession scare you. If you are faced with a market downturn, simply sit and wait for the cycle to end. Also remember that not every recession will affect the real estate market. The fact of the matter is that real estate has been in a correction mode for more than two years now. We predict that prices will slowly rise toward the end of this year or the beginning of 2020. Take your time and buy cautiously, but don’t be idle. – Evi Kokalari-Angelakis, Golden Key Realty Group
2. Consistency
Consistency is very important in looking into your yearly goals for real estate investing or employment. In this type of market, hitting a home run on every transaction is hard. But if your ventures can yield your client or yourself a 10% return, then it is a solid trade. There are more and more alternative investments that are achieving this goal such as REITs and real estate crowdfunding. These should not be ignored. – Ralph DiBugnara, Home Qualified
3. Realism
Planning goals in real estate is akin to making a new year’s resolution and breaking it by the end of January if the bar is set too high. The key thing to remember when planning next year’s goal in real estate is to make the goals attainable and measurable. You can always raise the bar! – Cheryl Abrams Davis, Re/Max United Real Estate
4. Complete Focus
Focus. Get good at something that inspires you, that lets you follow your bliss. Focus 100% of your energy on adding value to the world through that one thing. Ideas don’t make money — brilliant execution and implementation of ideas make money. – Greg Clement, Realeflow
5. Reflection
Before planning any goals, I take time to reflect on the prior year and analyze where we were successful, where we failed and what we can easily improve on. Once I know that, it makes planning for the next year much easier. The biggest key is understanding your strengths so you can continue to put more resources toward those. Too many times, people try to force things that just aren’t working. – Ryan Pineda, Homerun Offer
6. Sensitivity Analysis
Investing in commercial real estate most often involves a multiyear strategy. It is important to have a well-thought-out business plan and to run sensitivity analysis on factors affecting the disposition of the asset, such as exit capitalization rate and the potential interest rate environment. A prudent investor should also be wary of using too much leverage in case the market conditions turn and warrant a longer holding period or other changes in the business plan. Thorough due diligence and an understanding of the local market should negate any short-term issues that may arise. – Adam Finkel, Tower Capital
Read more in Giving Due Diligence Its Due: Why Real Estate Investors Need To Ask Tough Questions
7. Value And Solutions
As both a broker and investor myself, I’ve been on both sides of the table. As a broker and service provider, if you want to progress in your career, the key is to figure out how you can add value and help your clients achieve their goals, solve problems or maximize return on investment. Accordingly, as opposed to setting income goals, I believe in setting education and professional development goals and the income will follow. Clients and investors are savvy and can see who is just in it for the money versus who has their best interests at heart, who genuinely knows what they are talking about and who is passionate about what they do. – Catherine Kuo, Elite Homes Christie’s International Real Estate