How Much Money Do You Want To Make?
Lots and Lots Right?
A lot of times when I ask people how much money they want to make in Real Estate Investing, I get a response like “lots and lots”. Or sometimes they will say a million dollars or even millions of dollars.
The problem with this response is that it is not specific enough and it might be too far of a stretch for you. depending on where you are in your Real Estate Investing career at the time. If you are out of work, with no savings and no income coming in, your goals would be a lot different than if your were currently employed with $200K in savings and $150K in equity.
When picking goals such as “how much money do you want to make” you have to be realistic. You should also have short-term and long-term goals. For example, a $1M goal might be a revenue goal or a net profit goal. It might be a 3 year goal or a 5 year goal. You have to start small with your short-term goals and work up to your larger long-term goals.
For most people, $1M net profit is an achievable goal within a 3 year period, no matter where you are starting. To make $1M in 3 years means you have to make just over $330K per year. $330K per year works out to about $28K per month. If your investment strategy is Lease Options, this means you would then have to do 1 Lease option with a net profit of $28K every month for 36 months. Once you become more active in Lease Options, you would be able to do at least 1 Lease Option per month.
Happy Investing,
Jim Pellerin
Investor, Advisor, Speaker, Coach, Writer
© 2012, JimPellerin. All rights reserved.
