As a passive real estate investor, your ultimate goal is to build and maintain a successful and profitable portfolio. Often, this journey is defined by long-term objectives that span years, making it challenging to gauge progress effectively and adapt to changing market dynamics. However, there’s a paradigm-shifting concept that can revolutionize the way you approach goal setting and execution in your passive real estate investment endeavors—the 12-Week Year. The concept was created by Brian Moran who wrote an excellent book and this methodology has completely changed my life over the years(no-pun intended) and I hope it will for you too.
The 12-Week Year: An Overview
The 12-Week Year is a powerful goal setting and execution concept that encourages individuals, including passive real estate investors, to think and act on a much shorter timeframe. Instead of setting yearly objectives, the 12-Week Year condenses the planning cycle into just 12 weeks. By doing so, you gain several advantages, including faster feedback loops, increased focus, and greater adaptability.
Why Choose 12 Weeks for Passive Real Estate Investing Goals?
By narrowing your focus to a 12-week timeframe, you bring your goals closer to the present, allowing you to begin to think about how to accomplish MORE in LESS time. This agile approach ensures you stay aligned with your long-term vision while adjusting your tactics based on real-time feedback.
The Benefits of Shorter Cycles
- Enhanced Focus: By defining a 12-week goal, you concentrate your efforts and resources on the most critical aspects of your passive real estate investments. With a shorter window of opportunity, distractions are minimized, and you can work more efficiently toward your objectives.
- Faster Feedback Loops: Waiting a year to assess progress may lead to wasted time and resources. In contrast, a 12-week cycle provides more frequent feedback, enabling you to identify potential issues and make necessary adjustments sooner. With the 12-week year, you find out much quicker what is working and what you can do, to make it better.
- Increased Accountability: The shorter timeframe creates a sense of urgency, motivating you to maintain momentum and accountability. This heightened sense of responsibility is crucial for achieving significant results in passive real estate investing. This might be the biggest factor of the 12-week year, you can’t put it off until next month.
- Opportunity for Iteration: If a particular strategy or approach isn’t yielding the desired results, the 12-week cycle allows you to pivot quickly and try alternative methods without a significant impact on your long-term objectives.
Selecting the Right 12-Week Goal
Depending on where you’re at in your real estate investing journey, here are (3) different 12-week goals that you can set for your first 12-week year.
****I’d recommend that you start a 12-week year TODAY and have your end date be whatever end of the nearest quarter of the year is. For example, set your end date as either March 31st, June 30th, September 30th, or December 31st, whatever is the next end of the current quarter.
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Expanding Your Investment Network
As a passive real estate investor, your success relies on your ability to identify lucrative opportunities and make informed decisions. One crucial goal for your next 12-week year should be to expand your investment network. Building strong connections with fellow investors, real estate agents, property managers, and other industry professionals can provide you with invaluable insights and access to a broader range of potential deals.
To achieve this goal, start attending local real estate meetups, industry conferences, and networking events. Engage in meaningful conversations, share your investment strategy, and listen to the experiences of others. Building relationships takes time, so aim to connect with at least five new individuals who align with your investment goals during the 12-week period.
Additionally, consider joining online forums or social media groups dedicated to real estate investing. Participate actively in discussions, seek advice, and share your knowledge. Engaging with a broader online community can expose you to diverse perspectives and investment opportunities beyond your local market.
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Define Where You Want Your Portfolio To Be 3 Years From Today
This may at first seem a little counterintuitive as we’re focused on the 12-week year but hear me out. As famously quoted in the movie Alice in Wonderland, if you don’t know where you’re going, any road will take you there. I’m paraphrasing the quote but if you take some time to figure out exactly what you want your life to look like from a passive income standpoint, 3 years into the future, it will help guide your NEXT 12-week year.
Don’t focus on HOW to get whatever you come up with, it’s more important that you just choose and clearly define the WHAT. 3 years is a long time, where you’ll have multiple opportunities to figure out the HOW.
After you define where you want your portfolio to be in 3 years, ask yourself:
What do I need to have accomplished by the end of this 12-week year, that would keep me ON TRACK to achieve my 3 year goal?
Once you have that objective identified, ask yourself:
What do I need to have accomplished this week, to be on track for my 12-week year?
If you’ve never done this activity, which also incorporates “planning to the now”, from the book The One Thing, By Jay Papasan and Gary Keller, it will completely revolutionize how you go about scheduling your week and day.
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Implementing an Effective Property Management Strategy
If you currently have properties, you may want to partner with a reliable property management company. They are crucial to the success of your real estate ventures. Your next 12-week year should focus on implementing an effective property management strategy that ensures the optimal performance of your investments.
First and foremost, evaluate your existing property management arrangements. If you are dissatisfied with their services or feel that there is room for improvement, consider searching for a more competent and reliable property management firm. Look for companies with a proven track record, positive client testimonials, and a robust understanding of the local rental market.
Additionally, streamline your communication and reporting processes with the property management team. Clearly define your expectations, such as rental income targets, maintenance standards, and regular updates on property performance. Effective communication can prevent misunderstandings and foster a strong partnership.
Furthermore, ensure that your property management strategy incorporates proactive tenant screening and retention measures. Quality tenants who pay on time and take care of the property can significantly impact your returns. Emphasize tenant satisfaction, address concerns promptly, and consider incentives to encourage lease renewals.
Wrapping It Up
Adopting the 12-Week Year paradigm is a game-changer for passive real estate investors. Shortening your goal-setting horizon to 12 weeks brings greater focus, faster feedback, and increased adaptability to your investment journey. By selecting appropriate 12-week goals, you set yourself up for accelerated success in the dynamic world of passive real estate investing. Embrace the power of the 12-Week Year, and watch as your real estate investment endeavors reach new heights.
