How to Set Realistic Goals for Your First Real Estate Investment

Set yourself up for success in real estate investing by defining clear goals, assessing your risk tolerance, and choosing the right strategy.

Key Takeaways Details
Define Your Investment Objectives Determine if your goal is passive income, appreciation, diversification, or short-term profit.
Assess Your Risk Tolerance Evaluate your financial situation and ability to handle market fluctuations before committing.
Choose the Right Strategy Align your investment approach with your timeline and desired level of involvement.
Consider Fractional Real Estate Investing Start with a low-cost, low-risk option to enter the real estate market.

Setting Achievable Goals for Your First Real Estate Investment

Many new investors dive into real estate without a clear plan, often making costly mistakes and missing valuable opportunities. The key to success in real estate investing is setting realistic goals that align with your financial situation, risk tolerance, and investment strategy.

Whether you’re looking to generate passive income, build long-term wealth, or diversify your portfolio, defining your investment objectives is the first step. This guide will walk you through how to set achievable real estate investment goals, assess risk, and choose the right approach to get started.

Step 1: Define Your Real Estate Investment Goals

Before making any financial commitment, ask yourself: What do I want to achieve with real estate investing? Some common goals include:

1. Generating Passive Income

  • Focus on rental properties that provide steady cash flow from tenants.
  • Passive investors prefer buy-and-hold rental properties or fractional real estate investing, where professional management handles operations.
  • Realbricks pays quarterly dividends—in Q4, we paid 2.25%, which translates to an estimated 9.4% annual return, making it an excellent source of passive income.

2. Long-Term Appreciation

  • Invest in areas with high-growth potential, where property values are expected to rise over time.
  • Many investors buy properties in emerging markets or hold real estate for 5-10+ years to maximize appreciation.
  • With Realbricks, our properties are highly vetted, increasing their potential for long-term appreciation. Learn more about why we chose Omaha real estate for our initial offerings, and why we believe this is a prime investment opportunity for our investors.

3. Short-Term Profit

  • Use a fix-and-flip strategy, where you buy undervalued properties, renovate them, and sell them for a profit.
  • Wholesale real estate investing allows you to earn quick profits by assigning contracts without needing capital for a purchase.
  • The Realbricks Secondary Market will provide an easy exit strategy for investors looking to cash out with relatively short holds.

Note: A property must be fully funded on our primary market before it moves to the secondary market, ensuring liquidity opportunities for investors.

4. Portfolio Diversification

  • Real estate can be a hedge against stock market volatility, balancing your overall investment portfolio.
  • Fractional investing enables diversification across multiple properties without the need to own one outright.
  • With Realbricks, investors can currently diversify across four properties, with plans to add more properties in the future and expand into multiple states, offering even greater diversification opportunities.

With Realbricks, you can start investing in real estate with just $100 and work toward all four of these objectives at once. Sign up in as little as 5 minutes.

Step 2: Assess Your Risk Tolerance & Financial Situation

Real estate investing involves varying levels of risk, so it’s important to align your strategy with your financial comfort level. Consider these questions:

How much capital can I invest without straining my finances?
Am I comfortable with market fluctuations and economic downturns?
Do I have a financial cushion for unexpected expenses?

Investors who prefer low-risk, stable income often gravitate toward long-term rental properties or fractional real estate investing. More aggressive investors may explore flipping houses or short-term rentals for faster returns.

A balanced approach ensures you don’t overextend yourself while pursuing your real estate investment goals.

Step 3: Choose the Right Real Estate Investment Strategy

Your strategy should match your investment timeline, risk tolerance, and level of involvement.

🔹 Short-Term Real Estate Strategies (Quick Returns, Active Management)

  • House Flipping – Buy, renovate, and sell properties for profit.
  • Short-Term Rentals (Airbnb, VRBO) – Rent properties for short stays in high-demand locations.
  • Wholesaling – Assign real estate contracts to buyers without taking ownership.

🔹 Long-Term Real Estate Strategies (Steady Growth, Passive Income)

  • Buy-and-Hold Rental Properties – Own and rent properties for consistent cash flow.
  • Commercial Real Estate – Invest in office spaces, retail properties, or apartment buildings.
  • Fractional Real Estate Investing – Own shares of real estate properties with low capital investment.

Not sure which strategy fits best? Consider fractional real estate investing—it offers benefits of both short-term and long-term investing without the hassle.

For a full comprehensive list of different real estate investing strategies, check out our article here: Real Estate Investment Strategies: 36 Ways to Invest in Real Estate

Step 4: Why Fractional Investing is the Easiest Way to Start

For beginners, fractional real estate investing is an accessible and low-risk way to enter the market. Realbricks allow you to invest in rental properties without requiring large upfront capital, property management, or hands-on involvement.

 Benefits of Fractional Real Estate Investing:

  • Lower Initial Investment – Start with as little as $100, making it easier to begin.
  • Diversification – Spread your investment across multiple properties.
  • Passive Income – Earn quarterly dividend payouts from rental income.
  • Hands-Off Management – No need to deal with tenants, maintenance, or property upkeep.

Start Building, Brick-by-Brick

Setting realistic goals is the foundation of a successful real estate investment journey. By understanding your financial situation, risk tolerance, and long-term objectives, you can choose the right investment strategy that aligns with your needs. Rome was not built in a day, and your portfolio does not need to either. Getting started with your first investment on Realbricks, can be a step towards your financial freedom.

Get started with Realbricks in just 5 minutes.

Disclaimer: Investing in real estate involves risks, including the potential loss of capital. This content is for informational purposes only and is not intended as investment advice. Investors should perform their own research and consult with financial professionals before making investment decisions.