Success in real estate can be messy. Sometimes it may seem like you’re just flying by the seat of your pants, hoping that your latest investment will turn out money – even though you have no idea if it actually will. Instead of estimating, you guess, and instead of guessing, you hope.
How is that working out for you? If you’ve been struggling in real estate, there’s a good chance that one key element has been missing: an effective – and actionable –strategy.
Before you say, “well, I could have told you that,” remember this: an effective strategy and realistic approach to real estate is not just a goal. It’s a plan. The difference, as it turns out, is huge.
Four Elements of Successful Strategy
Building a strategy that stands a high chance at succeeding requires an adherence to four key elements. They are:
- A goal. Without a definite barometer for success in place, no strategy can succeed. After all, how will you know when it’s effective?
- A premise. What kind of information about real estate are you working off of, and how good is this information? If your strategy doesn’t have good information as a starting point, it’s not going to get very far.
- Actionable steps. This is where you define the actions that need to take place in order to reach the goal. It’s important that these steps include real-world actions you can take; some people simply believe in setting smaller goals without defining how they can be achieved.
- Revision and adaptation. There should be a process in your strategy for regular review and change – after all, no plan is perfect. If you’re not constantly evaluating your success and tweaking your plan, there’s a real possibility that you’re simply wasting more time than needs to be wasted.
Putting it All Together
A lot of people have formed strategies before, but few of them actually use a guideline like the four principles above to guide this formulation. That’s why real estate can seem so messy and vague at times – your plans aren’t definite or complete enough to actually represent a coherent strategy.
To put all of these elements together, focus on making each portion of your strategy highly definite and definable – use numbers if you can. For example, know exactly what your goal is; give it a number and a definite deadline. Make sure all of your action steps outline exactly what to do. Make sure your revision and adaptation process is spelled out so you know when you’ve been sticking to it. The end result should be a comprehensive strategy that makes you confident in your real estate plans.