Chapter 2 HOW TO SET EFFECTIVE GOALS FOR SUCCESSFUL REAL ESTATE INVESTING

Question 1

What is the goal of setting investment goals?

Answer 1

To maximize the benefit from time and effort spent on investments.

Question 2

Why is it important to have clear investment goals?

Answer 2

They help in selecting the best financing tools for investments.

Question 3

What is a common fear associated with goal setting?

Answer 3

Fear of not achieving the set goal.

Question 4

What is a crucial aspect of the goal selection process?

Answer 4

It requires thought and deliberation.

Question 5

True or False: Goals are fixed and should never be altered.

Answer 5

False.

Question 6

What should you do if you find difficulty in reaching a goal?

Answer 6

Review the method you are following rather than changing the goal.

Question 7

What analogy is used to describe the importance of preliminary steps in goal setting?

Answer 7

The analogy of a pilot preparing for takeoff.

Question 8

What trait do truly successful people share?

Answer 8

The ability to stay focused on a task.

Question 9

What is necessary for effective goal setting?

Answer 9

Establishing a foundation of knowledge and experience.

Question 10

What are the key determinations to make before reaching a destination?

Answer 10

• Where you want to go
• The direction to get there
• Mode of transportation
• Knowledge to operate the vehicle
• Staying power (physical and economic)
• Willpower to avoid detours
• Ability to find your way if lost
• Recognizing when you’ve arrived
• Setting new destinations

Question 11

How should a goal be defined according to the chapter?

Answer 11

It must be worthy, worthwhile, and measurable.

Question 12

Fill in the blank: The _______ is essential to sound goals.

Answer 12

visualization of the future

Question 13

What can help demoralize an opponent according to athletes?

Answer 13

The power of visualizing winning.

Question 14

Why is it easy to see the wrong future in goal setting?

Answer 14

Because people often focus on the mode of transportation rather than the destination.

Question 15

What should goals be defined in terms of?

Answer 15

• What you want to attain
• Where you want to be
• What kind of lifestyle you want to live

Question 16

What is the importance of setting goals in stages?

Answer 16

It makes it easier to attain intermediate goals and move toward greater goals.

Question 17

What is a realistic view of failure in relation to success?

Answer 17

Failure is essential to success and should be planned for.

Question 18

What should you do when setbacks occur?

Answer 18

Review your goals to ensure they are attainable.

Question 19

True or False: Money should be the primary focus of goal setting.

Answer 19

False.

Question 20

What is the relationship between visualization and goal achievement?

Answer 20

Clear visualization increases the likelihood of attaining goals.

Question 21

What is the role of self-confidence in goal setting?

Answer 21

It increases as you set and achieve goals.

Question 22

What should you remember when visualizing your future?

Answer 22

To focus on your vision rather than the specifics of how to achieve it.

Question 23

What should you plan for in life to avoid disillusionment?

Answer 23

Setbacks

Planning for setbacks helps in managing expectations about success.

Question 24

What is the relationship between failure and success?

Answer 24

Failure is not the opposite of success; it is the sweetener of success.

Question 25

Why is it important to fine-tune your vision of the future?

Answer 25

A clearer vision makes it easier to attain that image.

Question 26

What should you do when you visualize your goals?

Answer 26

Write down the significant elements of your goals.

Question 27

What is the benefit of writing down your goals?

Answer 27

Provides proof of attainment and boosts self-esteem.

Question 28

What should you do when you achieve a goal?

Answer 28

Celebrate your success.

Question 29

How do your goals relate to real estate financing?

Answer 29

Goals help visualize the necessary actions and resources for real estate investments.

Question 30

What should you examine when setting your goals?

Answer 30

Your abilities and liabilities.

Question 31

List some abilities a fresh law school graduate might have.

Answer 31

* Good at law * Can study well * Enjoy gardening * Experienced in painting houses * Can invest $10,000 * Manage a $1,000 monthly mortgage * High energy level * Partial weekend availability * Interest in real estate law * Need to develop real estate contacts

Question 32

List some liabilities a fresh law school graduate might have.

Answer 32

* Need to be conservative due to job security * Limited hours for investments * Car payments * Six-month lease commitment

Question 33

What are some potential wants for a law school graduate's future?

Answer 33

* Own an office building and practice * Own a home in Boca Raton * Have a 40-foot sailboat * Be financially secure for life

Question 34

What should you do to refine your goals?

Answer 34

Make them more specific regarding debt levels and definitions.

Question 35

What are some steps to attain goals?

Answer 35

* Build a specialty in real estate law * Develop investment techniques and contacts * Buy vacant land for future developments * Learn to operate a sailboat * Transition from renting to owning * Attend local public meetings

Question 36

Who should you share your goals with?

Answer 36

Only with the most important members of your advancement team.

Question 37

What is an advancement team?

Answer 37

A group of people who can help advance your interests toward your goals.

Question 38

List general team members of an advancement team.

Answer 38

* Partner * Realtors * Bankers * Insurance companies * Loan officers * Trusted repairperson * Local officials

Question 39

What is a comfort zone in real estate investing?

Answer 39

A geographic area where you have knowledge and ability related to real estate.

Question 40

Why is it important to have a comfort zone?

Answer 40

It minimizes risk and creates a financial security blanket.

Question 41

How does local nature affect real estate investing?

Answer 41

Local real estate is less influenced by national trends and more by specific local conditions.

Question 42

What is the significance of 'location, location, location' in real estate?

Answer 42

Location plays a crucial role in real estate value.

Question 43

What factors can impact real estate values?

Answer 43

* Local zoning ordinances * Economic conditions * Supply and demand

Question 44

What should investors focus on instead of national statistics?

Answer 44

Local market conditions and specific neighborhood trends.

Question 45

What are some risks associated with real estate investing?

Answer 45

* Overborrowing * Market fluctuations * Economic downturns

Question 46

What is the outcome of rushing into the real estate market?

Answer 46

Potential overdevelopment and decline in property values due to lack of prudence.

Question 47

What is the main challenge of selling real estate compared to stocks?

Answer 47

Real estate is not a commodity that can be sold quickly.

Question 48

What should you be cautious about when borrowing in real estate?

Answer 48

Borrowing more than you can pay back.

Question 49

Why is real estate not considered a commodity like stocks?

Answer 49

It is not something you can sell tomorrow.

Question 50

What is key to becoming an expert in real estate?

Answer 50

Being knowledgeable about a specific area.

Question 51

What is the concept of a 'comfort zone' in real estate?

Answer 51

The totality of where you are comfortable using your techniques and abilities.

Question 52

What can the comfort zone concept help you achieve?

Answer 52

Confidence in your investments and reduced risk.

Question 53

What should you establish first to build your comfort zone?

Answer 53

Your goals.

Question 54

Fill in the blank: A comfort zone is devised to help you attain your _______.

Answer 54

goals.

Question 55

What types of properties might a young lawyer want to buy in their comfort zone?

Answer 55

Office buildings and waterfront homes.

Question 56

What should you do to define your comfort zone?

Answer 56

Geographically locate a specific area with the properties you want.

Question 57

What is the rule regarding straying from your comfort zone?

Answer 57

Never stray out of the comfort zone.

Question 58

How does knowledge benefit real estate salespeople?

Answer 58

It enables them to demonstrate expertise in their area.

Question 59

What will sellers and lenders prefer in a real estate transaction?

Answer 59

A knowledgeable buyer or seller.

Question 60

True or False: Most people know the names of their neighbors and property values.

Answer 60

False.

Question 61

What is a critical step after establishing your goals?

Answer 61

Implement your plan with financing techniques.

Question 62

What question should you ask before approaching a real estate investment?

Answer 62

Do I need to buy this?

Question 63

What should you keep constantly in mind as a real estate investor?

Answer 63

Your goals.

Question 64

List three methods for obtaining or getting rid of real estate.

Answer 64

* Acquisition * Bankruptcy * Charitable contribution

Question 65

What is one method of obtaining real estate that involves legal processes?

Answer 65

Eminent domain.

Question 66

What can be considered as the use and benefit of real estate?

Answer 66

Ownership and not just holding a fee simple title.

Question 67

What is a potential outcome of developing a comfort zone properly?

Answer 67

Increased confidence and reduced risk.

Question 68

What is the importance of reviewing your goals?

Answer 68

It helps keep you on the right track.

Question 69

What must you do as you expand your comfort zone?

Answer 69

Add to your own confidence.

Question 70

Fill in the blank: The comfort zone should begin _______ and work into a comprehensive area.

Answer 70

small.

Question 71

What is the ultimate goal of establishing a comfort zone in real estate?

Answer 71

Achieving financial independence.