Building long term wealth through rental properties.

2018 – Setting Goals and Sticking to Them

2018 – Setting Goals and Sticking to Them

2017 has been pretty incredible for us.

For the past several years, we’ve talked about investing in real estate and buying our first rental property. But that was it. We just talked about it.

We took steps towards our goal like growing our savings account and reading books and blogs. But we were still just talk. I wanted so bad to say, “We own an investment property.” and not just “We plan to own an investment property.”

The problem with talking about something is that it’s so easy for it to stay that way. It’s easy to think that you should read another book or wait another year before taking that big step.

In 2017, we finally did it! We bought our first investment property and we’re eager to purchase the next.

A new year has come and gone and setting new goals is on the top of many people’s minds. Goals to lose weight, eat better, travel more.

I have mixed feeling about goals.

According to The Peak Performance Center, goal setting provides you with direction, creates a clearer focus on what is important, and provides motivation. But then there is the idea that setting goals is pointless.

Did you know that 80% of resolutions fail by mid February? Let’s think about this. Eight out of every ten goals set, fail. They don’t even make it close.

Now, I’m not against goal setting. I just think it has to be done properly. You simply can’t put a post-it on the bathroom mirror with your new year’s resolution and call it a day. You need to create an actionable plan.

I love the SMART framework which states that goals should be:

  • Specific
  • Measurable
  • Attainable
  • Relevant
  • Time Bound

This framework is exactly how we went from “wanting” to “doing”.

Specific

  • Goals should be focused and well-defined. They cannot be vague. For example, a specific goal would be: expand my real estate portfolio by purchasing 2-4 unit multi-family properties in xyz neighborhood between $150k-$200k.

Measurable

  • The goal should address how much, how many, for how long, etc. Using the above example: expand my real estate portfolio by purchasing a 2-4 unit multi-family property every 2 months in xyz neighborhood between $150k-$200k.

Attainable

  • You don’t want to set yourself up for failure right from the start. If you are a brand new investor, is purchasing 6 multi-family properties in one year even possible? Do you have the funds and resources to make this possible? You should have to work for a goal, but it should be achievable with hard work.

Relevant

  • This portion talks about the “why” behind your goal. What is your motivation to make this happen? If you just want to buy properties to seem cool amongst your friends, you may not have the same motivation as if you were buying properties to support your family down the line.

Time Bound

  • If a goal doesn’t have a deadline, than what is pushing you to achieve it? Do you have 6 months to achieve this goal or 6 years? Pick a target date and stick to it.

Once you have a goal set, you need to create actionable steps to achieve those goals. What can you do today, tomorrow, or next week to hit that goal?

Alright, I’m doing enough talking here. Let’s get to our 2018 goals.

Goal: Pay off credit cards used for renovations by May, 2018

Needed Steps

  • Do a cash-out refinance on our current property
    • Research banks and shop rates
    • Have application in by February 15th
    • Close refinance by April 1st

Goal: Purchase and renovate one small multi-unit investment property (2-4 units) by December 2018

Needed Steps

  • Begin to aggressively save for a down-payment
    • Set up auto transfer of funds into savings account
  • Research reputable contractors (We want to be a bit more hands off with this next property.)
  • Continuously analyze properties daily to keep a pulse on the market

Goal: Create effective systems and workflows for landlording to ensure a solid scaleable foundation

Needed Steps

  • Create necessary excel sheets and book keeping documents from the start
  • Read blogs and books regarding this topic
  • Have a complete and thorough system in place before purchasing property #2

 

So those are our three main goals for 2018 that follow the SMART framework.

We’re excited, we’re motivated, and we know this will be the best year yet. Here’s to your own goals, we wish you luck with achieving them!

 

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