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7 Things Every Real Estate Investor Should Do By January 1

by Jimmy Moncrief on December 17, 2013 · 9 comments

  
January 1

2014 is fast approaching.

Here is a list of things you might want to consider this coming January first.

1. Make a 2014 Action Plan

Setting up an action-plan before the new year is critical.  This way, you can hit the ground running in January and you can enjoy the holiday season.

2. Express Gratitude for 2013

Look back at your year and acknowledge your growth, challenges, lessons learned and goals accomplished. Then, celebrate. It’s valuable to take the time to look back, so you can move freely and aggressively forward.

3. Revisit Your Metrics

You are probably already tracking metrics, but now is a great time to set up your 2014 reporting and find out where the gaps are. Look at rent-rates, capital improvements and contractor performance. Find out what metrics are no longer relevant and what new reports you can use to track your success in the New Year.

4. Set your 2014 Budget

Start with a three-year financial plan that considers your objectives and cost analysis. Upon this foundation, build a budget and estimate your projected money flows, in and out over a given period. Identify and test your key revenue assumptions and key variable costs. Break down your budget into expense and revenue categories. Then, plan your actions accordingly.

5. Learn from Your Wins

More times than not, real estate investor’s focus too much on what didn’t go well. One thing every real estate investor should do before Jan. 1 is identifying what went well. These are the victories. The next step is to unpack why these things went well.

6. Invest in Yourself

Invest in yourself and in your properties in 2013.  This reduces your taxable profit and as such your tax liability.

7. Remember your Family

Take the time to reconnect with your family and friends, and be sure to find some nice gifts for the loved ones you’ve likely been ignoring all year.

Summary

Is there something you do for annual planning?  Let me know in the comments.
Photo Credit: bubbo.etsy.com

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{ 9 comments… read them below or add one }

Gerald Harris December 17, 2013 at 10:56 am

Great List Jimmy!
My issue in past times was that I would take my losses so hard that it didn’t allow me to recover mentally. If I lost a deal or an investor a the last minute “pulled the plug” I would mentally sabotage myself. I think we all have our “pity parties” at times. The important thing to do is to remember your wins and learn from your losses. For myself, having 1 year and 5 year written goals has always been the key to me being consistent. Consistency is key in this business.

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Jimmy December 17, 2013 at 12:29 pm

Thanks Gerald!

I actually had to repeat this yesterday to myself!

Have a profitable 2014!

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Roy Schauer December 17, 2013 at 11:54 am

Very good points Jimmy! You should learn from your wins and losses by following up on what created the wins, and figuring out how to stop or bypass the losses. Everything is a learning experience. How you respond to it will determine your future success and ability to roll with the punches. Hope you and your family have a great 2014!!

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Jimmy December 17, 2013 at 12:31 pm

Thanks Roy

Agreed!

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Sylvester Burel December 17, 2013 at 12:30 pm

I think that is a great list to go by. I would dig down a little deeper and set action plans for all the important parts of your life, such as business, family community,then revisit them until they are embedded in your thoughts. Set a schedule to complete each goal, then revisit at years end to see how much of your plan unfolded. I also agree that consistency is the key, make this a habit and you would be surprised at what you have accomplished. I say this because in the past I would set my yearly goals at the beginning of the years, have portions of my plan heavily on my mind, but I would not revisit the plan. But surprising the things that I thought about the most I did accomplish. While other parts never came to lite. My points is , I think if I would have revisited that plan as often as needed I would have accomplished more. I think what I will do this year is start each day or at least weekly revisit my plan and continuously make sure I am on schedule. I look forward to a successful 2014.

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Jimmy December 17, 2013 at 1:28 pm

Sylvester!

Great Points! That’s my next blog post here!

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Nicole Goss December 19, 2013 at 11:17 am

I think Sylvester really hit the nail on the head. I’d also add that we should not only revisit last year’s plan but our 5-year, 10 –year, and life plans as well. How did 2013 impact your overarching goal in life?…How did it advance your 10—year plan?…Your 5-year plan?…Do the accomplishments of 2013 necessitate changes to all of your plans? Now would be a great time to reflect on each of our plans and make changes accordingly. Looking forward to your next blog about this!

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Al Williamson December 17, 2013 at 3:10 pm

Thanks Jimmy,
It’s strange how I don’t like to revisit my goals but much prefer to look forward an set new one.
It’s an act of disciple that will eventually build muscle.
Thanks for the added inspiration.

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Jimmy December 19, 2013 at 7:42 am

Al

That is a very interesting idea!

It reminds me of Marc Andreeson (founder of Netscape).

He said the key to stay productive was to keep a “done list” NOT a “to do list”

Reply

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