Real Estate Investment Goals Washington DC

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As an investor, it is important to set goals. But when using credit to reward yourself, how do you know when you really do deserve a reward, versus when you’re tricking yourself into deeper debt and further away from your goals? By avoiding extremes in rewards and by making a reward guide of what you can have and when, you’re on the way to living your goals without feeling deprived.

1. Don’t let current appetites steal from your future feasts

If you flip properties you may be lucky enough to see your profits quickly after your initial investment. However, as a real estate investor with a long-hold mentality, it may take longer before you see the fruit of your labors. It can be hard to wait to realize your profits, and sometimes you may be tempted to reward yourself before the deal is really done.

A common mistake is to take extra equity out of your property and use it as ‘mad money’. Some say it is best to put funds into other investments and use them as leverage. However, you are cheating yourself in the long run if  your equity pays bills for your big screen TV or impromptu vacations.

Of course we invest to have a better life, more things and—ultimately—more time. Instead of drip-draining your profits, try to make milestones that keep you motivated and rewarded. Treat yourself to a nice dinner when you’re able to increase rents, or allot a small percent of the total income to a “Fun Fund” that you intentionally dip into once a year. But be reasonable with your demands on the property.