How to Build Bigger and Setting SMARTer 2023 Goals

Dave Meyers:
Hey, what’s up everybody? Welcome to On the Market. I’m your host, Dave Meyer, and right this moment we’re going to be speaking about 2023 targets. First, we’ll evaluation the targets that we have now for 2022, what we hit, perhaps what we failed at, after which discuss what we’re trying ahead to and aiming for in 2023. For this dialog, I’ve my buddy Henry Washington with me. Henry, what’s occurring?

Henry Washington:
What’s up, buddy? Good to see you once more.

Dave Meyers:
Likewise. We even have James Dainard.

James Dainard:
What’s occurring guys?

Dave Meyers:
Kathy Fettke reside from Dallas proper now.

Kathy Fettke:
Hiya. some properties. Tremendous excited.

Dave Meyers:
Have a look at your glove. That’s the joy of actual property traders who get to go do property walkthroughs.

Henry Washington:
That’s a truth although. properties at all times will get me excessive.

Dave Meyers:
Yeah.

James Dainard:
Glowing why she’s purchasing. Who doesn’t glow once they store although?

Dave Meyers:
I do know most individuals are searching for retail stuff although, however Kathy is simply searching for multi-family complexes and it’s simply glowing on the identical time. Or single households.

Kathy Fettke:
Some girls like to purchase sneakers and I like to purchase homes.

Dave Meyers:
I’m with you. All proper. So should you listened to our present on Monday, we talked quite a bit about 2022 errors that we’ve made, however we’re going to shift to the extra constructive aspect of issues. I’d love to simply hear earlier than we go into subsequent yr’s planning, what a number of the targets you had for 2022 have been and form of the way you carried out on them. So Henry, let’s begin with you. What have been a few of your targets, and the way’d you do in your record of targets? Oh, he’s dancing.

Henry Washington:
Yeah, man.

Dave Meyers:
Fairly good.

Henry Washington:
You already know what’s humorous? The true property, the market shifts if you’ll, all through 2021 and 2022 type of correlates to how and why I hit sure targets. So my targets fairly excessive stage the place I needed to purchase 15 doorways that hit a ten% money on money return with a web money movement of … I shoot between three and 500 a door. So for 2022, we ended up doing, let’s see, we’re at the moment at 30 doorways that we purchased and that hit that quantity that we’re holding. Then should you take a look at the closings, we have now scheduled earlier than the top of the yr. That’s one other 16. So we’re going to be at about 46 doorways. So the unique purpose was 15.

Dave Meyers:
Rattling. Did you hit 15 by February?

Henry Washington:
Yeah. So what occurred was by February I had 20 beneath contract and a few of these ended up falling by way of and we didn’t get them. So we hit a number of of them early after which we acquired an enormous chunk as a result of we purchased a industrial workplace advanced and that wasn’t on the plan for this yr, however that had 11 items in it. Then we’re closing the yr with closing on a 15 unit trailer park.

Dave Meyers:
Oh, good. Nicely, I assume to start with, once we get to the a part of the present, we’re going to speak about 2023 targets. Now we have to carry you accountable for a stretch purpose. In case you tripled your purpose for final yr, have you ever set a better one?

Henry Washington:
That’s why I led with how the market is talking to those targets as a result of I usually have a door purpose or a rental property purpose after which I’ve a disposition’s purpose for my flips, proper? As a result of we flip those we don’t need after which we maintain the remaining. So my flip purpose was to do about 15 flips and attempt to hit about 1.2 million and we have been effectively beneath that. So so far as the quantity, we did 18 however we solely acquired to about 761,000 on that purpose. So numerous these have been smaller flips, a few of these have been partnerships. So I used to be solely taking 50% of the proceeds there. However in 2021, it was the precise reverse. I didn’t hit my rental door purpose. We purchased means much less leases however we did far more flips and far more revenue.
We did over 1.2 million in 2021 and we weren’t planning on it. So the market was simply telling us in 2021, you’re going to make huge income, promote every little thing you may that is sensible to, after which redeploy these property into issues that you simply’re going to carry long run. Then 2022 was somewhat little bit of the alternative. So we positively, positively missed the purpose on flips, however that’s okay as a result of we effectively exceeded our purpose on holds and I acquired into this enterprise for ahold. So if I’m going to overshoot one and miss the opposite one, I would like it to be this fashion. I need to seize extra doorways that I’m going to maintain ceaselessly.

Dave Meyers:
Oh, congrats man, that’s superior. I imply nice to listen to that you simply acquired effectively and above your purpose. James, what about you? What have been your targets in 2022, and the way’d you carry out?

James Dainard:
Man, 2021 and 2022 have been just like the craziest busy years I’ve ever been in actual property. It’s been completely nuts. For 2022, I had a number of targets that I actually making an attempt to get to. The primary one was, I used to be making an attempt to do $200 million in gross sales as a dealer direct to traders. That’s been a purpose mine for a pair years now. I haven’t fairly hit that mark fairly but. We ended up falling brief on that and we did about … We’ll in all probability find yourself clocking, we acquired yet another month in there, however we’ll in all probability be round 160 mil in gross sales, which remains to be nice. Nevertheless it positively one thing we’re pushing to get to, I’ve created the plan to get to 200 million subsequent yr. Different targets that I had was we needed to accumulate about 4 to 500 extra doorways for our portfolio.
We’re going to do that extra by way of syndicating, not by way of … Nicely, I type of do that two other ways. Me and my enterprise associate, we do bigger offers collectively after which we do purchase numerous improvement property and we personal it collectively. So we have now our personal set of doorways that are roughly round 1500 doorways in there. So we have been making an attempt to get that nearer to 2000 by the top of the yr and we fell brief, we hit about 300 doorways for the acquisition. The reason is, I feel we missed that purpose principally it’s as a result of the offers simply weren’t there. It was higher to skip our purpose and simply transfer on and begin refocusing. As a result of if it’s simply not there, you may’t drive it in. I do suppose that we’re going to have the ability to hit that quantity subsequent yr as a result of the alternatives are positively there and we’ve already boughten considerably extra doorways within the final 60 days than we did all earlier yr from there.
So different targets that we had for 2022 is we needed to lock all of our portfolio charges in. So we spent numerous time in that final quarter of 2021 and 2022 forecasting our complete portfolio out. As a result of numerous occasions once we’re shopping for these condominium buildings, they’re on 5 yr notes. So what we needed to do is we needed to stagger all of our loans out. A, lock the charges that have been low cost. So we’re capable of get actually good cash on all these offers and enhance the money movement however then additionally stagger out all of our balloon funds as a result of we needed to guarantee that we weren’t working right into a fiscal yr that the place we have been simply going to get crushed with refi’s occurring. So we spent numerous time … We knew 2021 was this loopy progress yr. So to start with of 2022, we simply stored with the gross sales however we actually needed to simply take a look at every little thing internally, audit it, stabilize every little thing out. So we have been very pleased with hitting that purpose.
We don’t have one mortgage coming due for at the least 4 years and so we don’t have to fret about some form of fee bounce or something like that. In order that was an enormous purpose for us to hit. Then one different factor that we have been positively have been pleased with that we hit, we had a purpose to do about $20 million in short-term tendencies, which goes to be repair and flip in improvement websites. We ended up doing about 30 mil in tendencies.
A part of that was in all probability 15% progress in values, however we ended up internally by way of my enterprise associate, we did about 30 mil in tendencies, which I’m actually glad we racked numerous these within the first two quarters of the yr as a result of I feel it will’ve been quite a bit much less if we might’ve hit into that third quarter. So we positively truly, on the brief time period within the gross sales aspect, we kick very near our targets if not excelled. We didn’t choose up numerous rental doorways or as a lot as we needed simply because the offers weren’t there. So I’m positively going to be doubling down on 2023 as we’re seeing higher deal movement to accumulate increasingly more doorways.

Dave Meyers:
Nicely, to start with, congrats James. It feels like an superior yr general, however it’s attention-grabbing that you simply and Henry principally had swapped experiences. You probably did extra flips and fewer leases the place Henry did the precise reverse.

Henry Washington:
Yeah. I additionally needed to take a second, and thanks, Dave for permitting me to go over my targets first. As a result of once I’m speaking a few purpose of hitting 1.2 million and doing 15 flips, James is like, “I need to do 1.2 million on one deal.”

Kathy Fettke:
Targets.

Henry Washington:
We’re making an attempt to get 200 million. I’m like, “That’s cool.” I simply need to make one million off of my 10 offers.

Dave Meyers:
All proper. Yeah, you’d be Henry, we have now to go first. I’m going to let James-

James Dainard:
That’s my 200 million ghost although. I’ve simply been chasing that for years. I’ve a plan. No, for 2023. I do know I’m going to get it. So it simply means greater offers.

Henry Washington:
I stated yesterday earlier than you truly have been capable of hop on due to your technical difficulties that everyone wants James Dainard issues. I’d love a James Dainard. I’m chasing $200 million drawback.

Dave Meyers:
Fell brief at 160.

Henry Washington:
Yeah. What are you going to do?

James Dainard:
You bought to watch out what you ask for. Each morning I get up and I’ve a hearth in my e mail field. There’s 10 points, allow points, contractor points, however you simply set to work by way of them and simply work out easy methods to put the proper techniques in there and in addition simply be somewhat little bit of a deal junkie.

Henry Washington:
The distinction between you and someone like me who wakes up with fires in my inbox is that once I verify my e mail, I’m not doing it on a ship.

Dave Meyers:
That may be a vital distinction. Nicely, all the hearth emails is an efficient segue as a result of I really feel like Kathy is at all times identical to the zen investor. No stress, simply at all times calm, so.

Henry Washington:
Simply purchase stuff that works …

Kathy Fettke:
Oh, no. No, no, no.

Dave Meyers:
… [inaudible 00:11:15] earlier than. It’s okay.

Kathy Fettke:
I acquired huge fats challenges. However I’d say I win as a result of I achieved a purpose that I didn’t even have. I didn’t even write it down.

Dave Meyers:
Which was what?

Kathy Fettke:
I simply at all times thought the best factor on the planet could be to be a co-host on BiggerPockets with Dave Myers. What? What? I imply that was only a dream, not even a purpose. Right here I’m. So I’m severe. That’s wonderful. I used to be snowboarding once I acquired the e-mail from Caitlin saying that I used to be on and I’ve that ugly face cry, that joyful face. However you’re like, “Ugh,” that my daughter took an image of. I’ll ship it to you.

Dave Meyers:
Oh, we acquired to publish that one.

Kathy Fettke:
Yeah, all sweaty from snowboarding and oh my God. So she’s like, “What’s improper, mother?” Anyway, yeah. In order that’s a purpose. That was a secret purpose. I’m so grateful. On my precise written targets, I’m married to a coach, proper? Wealthy Fettke, he does this for a dwelling each single yr. We sit down, we write down a very powerful issues we need to accomplish past what our regular work is. I imply all of us have issues that we’re doing and dealing by way of, however what can we need to do past that? Pushing ourselves. So I had three, and once more that’s Wealthy’s factor is I maintain the massive ones to 3 as a result of the mind can’t deal with greater than that.
My huge one was beginning a girls’s mastermind and I failed. I didn’t do it you guys, I didn’t do it. I did one however I didn’t make it official. In order that’s going to be 2023. I don’t know what stopped me. I feel I simply didn’t know fairly … That’s an excuse to say I didn’t know easy methods to do it. I feel I used to be scared as a result of I haven’t finished it earlier than. So I simply did one and I feel it was actually enjoyable and went effectively. In order that’ll be subsequent yr as a result of I simply actually consider in girls serving to girls turn into higher leaders. We nonetheless have work to do. We nonetheless have work to do there. Nonetheless not a feminine president.

Dave Meyers:
Nicely, you’re a glorious candidate to guide that mastermind, Kathy. So we want you to do it in 2023.

Kathy Fettke:
Oh, thanks. Thanks. I actually admire that. I’m going to do it. Okay. Then my second one was to complete my revision of my ebook. I wrote “Retire Wealthy with Leases” in 2014. It was so outdated. Then, once I acquired on this present, I’m like, “Oh, no. Individuals are going to learn that ebook they usually’re going to be like, none of this is sensible. None of it’s doable right this moment.” However this had been a purpose. Do you guys ever have a purpose and it’s on there each single yr? The identical freaking purpose.

Dave Meyers:
After all.

Kathy Fettke:
Sure. So 2018, 2019, 2020. I imply each single yr. So my husband Wealthy being a coach was like, “Do you want some accountability this time as a result of we actually want you to rewrite your ebook. It’s very outdated.” So I’m like, “Sure, assist me.” So he set an appointment on the audio recording studio the place I’d file it, non-refundable, and he is aware of that I didn’t need to lose 1000’s of {dollars}, set the date and he’s like, “That is the date you’re displaying up whether or not it’s finished or not.” So I did, I revised that ebook. It re-recorded, it’s up to date to 2022. So I did that. Actually, actually joyful.

Dave Meyers:
Congrats.

Kathy Fettke:
Thanks. These are the skilled targets. The third one was I knew in January that the market was going to shift. I knew that, effectively clearly the Fed had acknowledged they have been going to boost charges seven occasions this yr and which means an enormous and sudden slowdown to the economic system. So I knew that was coming and I needed to be ready. So I needed to have a fund as a result of I needed to have an enormous bundle of money. Hundreds of thousands and tens of millions of {dollars}. How about 20 million simply prepared to accumulate? We did it.
I discovered my excellent associate. I’m right here in Dallas proper now, able to go meet together with her. We’re going to go take a look at the acquisitions that we’re about to go after. I’m tremendous proud as a result of I acquired this one finished and I acquired the proper associate and she or he’s each a property supervisor right here in Dallas. I’ve been working together with her for 10 years. I do know her very effectively and she or he’s excited and she or he’s principally doing her deal, which is shopping for older houses however not too outdated. They’re type of mild rehab. We’re fixing them as much as very nice A category situation as a result of so many excessive tech individuals are shifting from California to Dallas they usually’re going to count on California requirements. So we’re actually making these locations good. All of the fairness goes into the fund, all of the upside and we simply share it. 75, 25 with the traders, so.

Dave Meyers:
That’s superior.

Kathy Fettke:
We did it. I’m tremendous excited and we’re profiting from this time when so many individuals are afraid they usually shouldn’t be, however they’re. As a result of folks consider headlines which we’re taking a look at gross sales volumes, I’m simply going to say this actually fast, however gross sales volumes right this moment should not that completely different than pre-pandemic. Individuals are nonetheless shopping for and promoting houses, however you may’t examine yr over yr information. You possibly can’t examine now with loopy, proper? You’ve acquired to return to pre-pandemic. So headlines know easy methods to freak folks out. They’re evaluating now from final yr, which was an unprecedented yr. Don’t do it. Don’t take a look at headlines that examine now with then. So anyway, I’m thrilled perhaps that different individuals are studying these headlines as a result of we’re entering into and there’s simply not competitors when you may are available in with money, it’s unbelievable.

Dave Meyers:
Superior. Nicely, congratulations to all of you as a result of my actual property targets are lame in comparison with all of yours. I used to be going to say that my purpose was launching this podcast with all of you, which is true and actually admire you saying that, Kathy. But in addition admire all of you and Jamil, wherever he could also be making ready for his TV present launch that you simply all helped me make one in all my annual and lifelong targets come true, so. That’s an enormous one for me. All proper. Let’s take a fast break after which we’re going to return again and discuss our targets for 2023.
All proper. Time for 2023 targets. James, you talked an enormous recreation about your plan to hit 200 million in gross sales. So let’s hear about this purpose and your plan of assault for 2023. I assume is that this a very powerful purpose you’re going after subsequent yr?

James Dainard:
Nicely, no. A very powerful one is to get somewhat bit extra. So that they’re type of counter, I acquired to determine the magic sauce on this as a result of I’m additionally making an attempt to get somewhat bit out of my operational aspect of the enterprise on the gross sales aspect. So I need to step out extra however then proceed to develop. The rationale I need to do this extra is, I’m making an attempt to get out of the service aspect as a lot and get the proper employees and we have now an amazing workforce, increase the workforce after which be extra within the investor. As my profession as an investor over the past 18 years, it’s at all times been numerous fingers on exhausting work and getting within the weeds, getting issues finished, fixing issues. As I’m getting older and doing extra offers and getting extra capital, I need to be extra passive.
So which means I actually need to deal with the long run funding targets, not simply racking these checks in. So that’s the final purpose, is to rent up, usher in some extra companions inside our companies, groom some folks that may take over as operators within the client and repair aspect. Then I can focus extra on the funding technique aspect, like constructing the proper groups to continue to grow. As a result of I do suppose there’s going to be a considerable quantity of alternative for the following 12 months. When you have the proper groups collectively, you may actually let your cash work and develop. So I assume the largest one is see my youngsters and spouse extra and work much less, however nonetheless develop the companies and deal with the larger image. That $200 million in gross sales, I’ve been chasing this for 3 years now and I can not get there.
What I spotted is it’s as a result of I persist with what I do know so effectively and what we’re actually good at for us as a dealer and a brokerage, we solely promote what we all know very, very effectively. I received’t promote any kind of funding that I haven’t at the moment finished so as a result of we need to know easy methods to package deal it, look it and assist folks work by way of that funding deal. We simply don’t … For instance, on warehouse leasing area, I’ve by no means finished that earlier than. We don’t promote that. It’s simply we need to guarantee that we’re actually serving to our shoppers by way of. However that’s at all times based mostly on my expertise, that doesn’t imply I can’t carry in additional folks to assist enhance the shopper’s expertise. So I’m going to be truly … To get to this purpose of 200 million, we’re we’re going to double our gross sales workforce, which lots of people are shrinking their gross sales workforce for this 2023. All people’s pulling again proper now and simply going, “Okay, let’s get steady. I’m doubling down.” So we’re hiring two occasions extra.

Dave Meyers:
Are you discovering it simple to rent proper now? Do you see a possibility in grabbing expertise from different people who find themselves scaling again?

James Dainard:
Undoubtedly on the gross sales aspect, that’s for certain. There’s numerous misplaced brokers on the market. The markets, it wasn’t an actual marketplace for the final two to 3 years. It was this artificially inflated market that was on hearth. What that did is even for knowledgeable brokers or new brokers, it A, introduced lots of people into the enterprise that perhaps actually weren’t actual property folks. They have been simply making an attempt to become profitable. The second factor is, what it did is folks gotten actually lazy on their every day behavior. It began changing into too simple. In case you’re a dealer, you didn’t have to fret in regards to the advertising plan, you needed to simply throw an indication within the yard and work out easy methods to feed the gives and work that deal as greatest as doable. That’s not promoting. That’s feeding gives and that’s negotiating at that time.
So numerous easy habits that you simply want so far as an investor, a dealer, a lender, these guidelines acquired damaged, whether or not it was underwriting, the way you have been doing them, what you have been shopping for, should you might execute. In order that’s type of shooken up, there’s lots of people … I’ve had considerably quantity of salespeople reaching out to me about careers. Within the development aspect, we’ve positively seen a … It’s getting simpler throughout the board property managers, we’ve been capable of employees up somewhat bit extra internally for our syndication properties in our inner leases. Superintendents are positively beginning to float round much more, development staff as a result of numerous huge builders laid off. Lots of people are stopped shopping for their forecasting to not be shifting as a lot. So sure, the hiring is getting somewhat bit simpler. Not in all sectors.
I feel my normal advertising, accounting, these issues, these are nonetheless exhausting to rent for. However our actual property trades the specialists. It positively is. So what we need to do is take this and what I’ve found out is I solely have a lot area that I can develop that 200 million in. There’s solely so many single household leases, repair and flip property’s improvement websites that we are able to promote to be tangible and to continue to grow. There’s solely a lot alternative on the market. You bought to supply sufficient off market, on market. So what we’re actually doing is we’re doubling and tripling down on segments that we simply began that we do some enterprise in. As brokers, we supply numerous dust for builders in Seattle the place we’re discovering the property, locking it up, promoting it to them on a time period. So what we’re doing is we’re doubling down on these huge sectors. So multi-family industrial.
We’re simply making an attempt to increase it moderately than simply create extra repair and flip and bur alternatives. We need to create the alternatives in all these completely different segments, which looks like a no brainer to be doing that as you’re rising your online business. However whenever you’re doing this many offers, you get caught within the weeds and also you simply need to get offers finished and it’s going effectively. So now we’re making an attempt to develop the segments and perhaps a part of my enterprise shrink somewhat bit simply to deal with the expansion of those. That’s what I needed to get to. I’m okay doing that.
I feel that was the largest factor I did over the past month was actually do some soul looking of, I by no means need to cease rising, however how do I need to develop and if I need to develop as an investor, then I would like to surrender a few of these different issues that create excellent revenue. That’s okay as a result of the larger image is I could be a lot more practical in our massive improvement offers, or syndicating, or lending of cash as a result of we accomplish that many alternative issues within the Pacific Northwest, you need to maintain them narrowed in. Then we’re additionally making an attempt to choose up a thousand extra doorways this yr. I feel we are able to hit that.

Dave Meyers:
Simply throw that in. Simply, oh, by the best way. Simply by the best way a thousand doorways.

James Dainard:
I feel there’s going to be a lot alternative. I feel we are able to do this. We’re going to be doing that by way of 10, 31 trade workforce. We’re wrapping up a pair proper now the place we’re going from seven doorways to 30 proper now. We’ve wrapping up a pair 10, 31 exchanges. Then actually, with folks not shopping for greater offers, the offers are there, however we have to employees up accordingly to maintain these items. So we’re hiring proper now, like we’re shopping for a thousand doorways. I feel we are able to get in that.
We’re very enthusiastic about that as a result of it’s exhausting to accumulate good rental property that may pay a excessive yield in Washington State. So huge targets, however you bought to have your targets huge. Your targets aren’t huge, you don’t grind as exhausting. So it retains me on the hamster wheel, however I’ve a sure purpose to get to. I need a sure amount of cash each month from passive revenue and I’m not there but. So I’ve to create extra revenue, I’ve to avoid wasting my cash, stick it away, and simply let that continue to grow so I can get to that magical quantity that I’ve been chasing.

Dave Meyers:
Nicely, so James, I need to ask you earlier than we transfer on, such as you stated, so your philosophy about purpose setting is to set huge targets. Does that imply, you already know you may not hit them annually? Or what’s your strategy to how attainable you suppose your targets ought to be and what number of of them you set?

James Dainard:
I feel that’s query. I set my targets greater and I feel it depends upon who you’re as an individual. Some folks like that gratification of, “Hey, I acquired this finished, verify it off an inventory.” I imply, to be trustworthy, if I’ve an inventory and I acquired to cross issues off, it is rather gratifying. Like, “That is finished, that is finished.” There’s one thing about that that’s … Okay, even when it’s, “Hey, I picked up my groceries finished,” however I’m an individual that I like failure makes me work more durable. Success typically makes me somewhat … It takes it off the gasoline, I don’t know what it’s.
In order that’s not for everyone, it’s simply how I do it. Perhaps it’s not the healthiest behavior, however I wish to make it to the place I’m at all times making an attempt to push myself to that code purple. Normally which means hit making an attempt to get to a purpose that I couldn’t hit or that I believed it will be a protracted shot. I’d moderately have a protracted shot purpose than a simple one. I don’t must knock that. The larger image is what I’m chasing and if I don’t hit my purpose, I get nervousness and it makes me work more durable, smarter and do it in another way/ it’s one of the best ways for me to do it, however it’s not for everyone.

Dave Meyers:
Anxiousness fueled gold attainment. It’s one thing I actually, actually relate to, James.

James Dainard:
Yeah, if you wish to get to extra offers, you bought to get the magic mixture of means an excessive amount of caffeine nervousness and it turns into a complete basket case and also you simply get issues finished.

Dave Meyers:
Yeah. Constantly telling your self that each success was truly only a failure. That’s the important thing that I make sure that to throw in there.

James Dainard:
That’s one in all my largest targets for 2023. Give up ingesting Rockstar. It’s an enormous one.

Henry Washington:
Nicely, there goes our Rockstar sponsorship.

James Dainard:
Until it will get sponsored. Yeah, that one, I formulated a plan for that too.

Kathy Fettke:
Oh, shoot. I believed that was going to be your mastermind. It’s like all people sits round and drinks Rockstar’s all day and simply will get anxious and like, “Oh, how can we have now targets we are able to’t hit?”

Dave Meyers:
Nicely, James, I completely relate, however let’s go to Kathy. I really feel like she in all probability has a more healthy thought of easy methods to set targets.

Kathy Fettke:
No, it’s humorous as a result of I used to be like that for a few years, 20 years simply charging. I feel life simply has a means of calming you down as you become old, perhaps. I don’t know, you’re simply not sufficiently old but, James.

James Dainard:
I really feel like I’m getting there.

Kathy Fettke:
Oh, you begin to see the children develop up and also you begin to see issues sag whenever you’re in Downdog. It’s identical to perhaps it’s time to loosen up. Anyway, what are we speaking about, guys?

Dave Meyers:
Nothing. Present’s over.

Kathy Fettke:
Oh, I simply need to spend time with my grandson who by the best way simply acquired a police automotive that the little ones guys might drive. So now each evening, he patrols the neighborhood along with his police automotive.

Dave Meyers:
Yeah. That’s lovely. I needed a kind of so dangerous once I was a child. What are they referred to as? Energy wheels?

Henry Washington:
Energy wheels.

Dave Meyers:
Energy wheels, proper? Yeah.

Kathy Fettke:
Yeah. It’s acquired alarms and sirens. I’m certain the neighbors love us.

James Dainard:
Yeah. What occurred? That was normally for the actually cool youngsters. Now I see them in every single place and I’m like-

Dave Meyers:
Yeah.

James Dainard:
In case you had that it was having Reebok pumps.

Dave Meyers:
Oh my God.

James Dainard:
Then the Reebok pumps in an influence wheel.

Dave Meyers:
Yeah. You have been the best child on the playground for certain. Nicely, what have been we speaking about? Oh, targets, Kathy, you stated three targets, proper? That’s what you set. So do you’ve got your three targets for subsequent yr but?

Kathy Fettke:
We normally sit down on New Yr’s Day and do it collectively as a household after which the following week we do it with our firm. But when I have been to guess what it is going to be, I’ve already stated it. I’m going to have and launch essentially the most superior girls’s mastermind. Can’t wait. That will likely be totally flushed out by I feel earlier than January. So perhaps that’s nonetheless a, this yr purpose. Perhaps you’ll truly hit the purpose this yr. Hey, it’s not over.

Dave Meyers:
Yeah. There’s nonetheless time.

Kathy Fettke:
Yeah, yeah. Okay. So in 2023, once more my values change over time and I’ve acquired two daughters and the youngest one’s 23 and a dream has been to work together with her, work with each daughters. So the 23-year-old got here to … I truly went to Europe together with her this summer time and she or he got here with me to Portugal to take a look at the Golden Visa program and this system we have been setting as much as assist People and different individuals who have been searching for a citizenship. Krista was with me in Portugal, fell in love with Portugal, fell in love with the concept of the Golden Visa program. She needed to do it. So now she’s working for Gateway Portugal which is a buddy of mine who began that firm and it’s been a lot enjoyable serving to her launch that. In order that’s one in all my targets is to assist my daughter. I’m an element proprietor on this enterprise now and assist her launch this factor. So I’d say for 2023, actually dwelling that dream of being in partnership with my daughter on one thing she’s tremendous obsessed with.

Dave Meyers:
Cool. That’s superior. I really like that.

Kathy Fettke:
So enjoyable. So enjoyable to see her. All people … Not all people, however numerous occasions you need your youngsters to work and your online business with you, however they want to decide on that. By no means drive that. Simply be so superior that they need to do it with you and never too younger. They should go discover out what different jobs are like and what different bosses are like after which notice you’re one of the best they usually need to go discover that out. However she was prepared and she or he got here to us wanting to do that and she or he’s been booked with three, 4 conversations a day already with folks in-

Dave Meyers:
Wow, that’s so cool. Congrats.

Kathy Fettke:
What else? Clearly, the fund maintaining that rising after which the massive one is working by way of a number of the initiatives that I began years in the past which were difficult. Now we have floor up improvement initiatives, so it is a robust time for builders. So my purpose is after all to do as greatest as I can for our traders. We truly bought out two of our subdivisions early this yr, so the timing was nice, however we’ve acquired three extra. So simply giving all of it every little thing. I’ve acquired creativity, advertising, working, like I stated with our high-end luxurious houses. We’re working with the shared trip mannequin with Ember Houses, which is like Picasso. And that’s only a phenomenal mannequin the place folks can have these trip houses and never need to pay for the entire dwelling as a result of who makes use of their trip dwelling on a regular basis? Folks don’t.
It’s a waste of area. It’s a waste of land for folks to have these trip houses they don’t use. I imply the place I reside in Malibu, it’s 50% occupied as a result of all these wealthy folks personal houses which can be empty and that’s not nice. So it is a method to share that in order that there’s shared possession in these trip houses. You get your days. So issues like that. Actually discovering alternate options to the initiatives I’m already in to do one of the best I can for my traders. Now what Wealthy would say is make it good. Actually acquired to … What does that imply? What number of? Get it down in writing with numbers and dates and be particular. In order that’ll be what I do on January 1st.

Dave Meyers:
Good. Nicely, should you don’t know what Kathy’s speaking about, about SMART targets, it is a actually in style purpose setting framework that’s tremendous useful. SMART is an acronym. S stands for particular. So I’m going to learn this, I haven’t simply memorized this. Particular says, to ensure that a purpose to be efficient, it must be a selected purpose. Solutions query, what must be achieved, who’s answerable for it, what steps have to be taken to attain it. M is for measurable. I feel that is tremendous essential.
Clearly, I’m an information nerd, however quantifying your targets makes it simpler to trace your progress. You’ve gotten to have the ability to maintain rating if you wish to set a purpose. A is achievable. So James, I don’t know in case your huge targets would fall into the SMART targets, however I prefer it. Achievable, however formidable ought to be the A. R is related in order that it’s truly essential to you and that it’s essential to your huge image. T is time-bound, which I feel is de facto essential too. You need to give your self a deadline. So should you’re fascinated with purpose setting and need a framework, SMART targets is a extremely, actually great way to try this.

Kathy Fettke:
Dave, that’s why I didn’t accomplish the mastermind one. I used to be like, “Yeah, I need to do a mastermind, however I didn’t make it SMART. I wasn’t particular. I didn’t say many. I didn’t say precisely what that may appear like.” So you can say that I achieved it as a result of I did have one, however that’s not what I actually had in thoughts. However what I had in thoughts, I didn’t write down.

Dave Meyers:
Completely. As a result of I assume the method of doing a SMART purpose is numerous the work you want to accomplish your purpose. In case you can work out what particularly you need it to be and what the metric of success is and whenever you’re going to do it by, that’s numerous the work for lots of those targets. So it forces you to take a number of the ambiguity out of it after which you may deal with execution and fewer on what is that this factor going to be? I assume it simply helps. All proper. Henry, what are your targets for 2023? I assume let’s simply begin truly with what’s your philosophy on purpose setting?

Henry Washington:
So yeah, my targets for 2023, I wish to maintain them easy. So I type of simply carry over the identical targets after which both alter them based mostly on what occurred within the earlier yr and the way that made me really feel or and the way that made us really feel about the place we need to go the following yr. So we’re nonetheless seeking to purchase 15 doorways, we’re nonetheless going to do about 15 flips. Wish to hit that 1.2 million quantity. I do have targets round hiring folks this yr as a result of we’re simply nonetheless a small operation. I nonetheless do acquisitions. My spouse is our property supervisor, my handyman is my sister-in-law, proper? I employed a social media supervisor this yr so I might take social media off my plate so I might focus extra on the precise enterprise of investing in actual property. So subsequent yr I need to rent … We’re going to herald someone to do acquisitions. I need to get a private assistant to assist me with a number of the day-to-day administrative issues that take an excessive amount of of my time.
However all of that’s simply round me not having to spend as a lot time within the enterprise in order that I can hang around with my spouse and youngsters extra. However for me, what’s essential about targets is A, that you’ve them. Proper? So you want to write your targets down. I feel there’s one thing highly effective about truly writing them, like placing pen to paper. You possibly can kind them and that’s cool. However once I write my targets down, I don’t know. It feels extra actual. It feels extra like one thing that I’m going to look to attain. So a number of the hacks that I do with my targets will not be solely do I write them down, however I write them a number of occasions a day. So on daily basis once I get up within the morning, I work out after which I sit down and I write my targets again and again. I attempt to write them three to 5 occasions every. I want I had the paper as a result of I’m in my workplace. It’s typically-

Dave Meyers:
Like Bat Simpson on the chalk board?

Henry Washington:
Yeah, precisely. 100%. I’ve a notepad and I write my targets again and again as a result of for me, it’s a mindset hack and folks get little flu, flu whenever you discuss mindset, however for me a mindset is a psychological device to assist me keep bodily disciplined with the duties. So me writing them on daily basis is de facto simply me ensuring that my targets are staying on the forefront of my mind in order that as I’m truly doing issues all through the day, I’ve my targets in thoughts as a result of I put them on the entrance of my mind each single morning. So it helps me work in the direction of these issues. It helps me once I’m time blocking, I’m ensuring that I’m blocking time and dealing on issues which can be related to these targets. One other factor that I do is I put my targets in image kind after which I’ll save them as a imaginative and prescient board on the house display in my telephone, simply in order that … I acquired your telephone in my hand all day.
So each time I’m going to unlock my telephone, I can see my imaginative and prescient board. It helps me bear in mind, particularly if I really feel like … As a result of we’re all going to get into locations the place we really feel just like the issues that we’re doing are spinning wheels, however these wheels aren’t truly getting us nearer to our targets. Then I get overwhelmed. And so once I get overwhelmed, it’s very simple for me to simply look and see, “Okay, if what I’m doing proper now isn’t shifting me nearer to one in all these targets on my telephone, then I must readjust what I’m doing as a result of we’re all going to get overwhelmed and we’re all going to get burned out.” Identical to James stated, you get up and also you’ve acquired the fires in your inbox and it’s simple to simply deal with these fires. However typically what I’ve observed is all these fires aren’t actually fires and all these fires don’t actually take me to do one thing.
Generally it’s a hearth that someone else thinks is a hearth that I’ve to deal with when it’s actually simply one thing I must push again on them to deal with. It’s not that huge of a deal. So it helps me to remain targeted. It helps me to at all times bear in mind the issues I have to be engaged on have to be pushing me in the direction of these targets. Then I additionally like to write down my targets down after which I stick them in every single place. So in my workplace you may’t see it. However on the wall right here, on the aspect, on the sticky be aware, I’ve acquired targets written down again and again. On my workplace at dwelling, identical factor hanging from my screens are my targets. Subsequent to my mattress, I’ve my targets. I even have my targets on a sticky be aware within the bathe in order that once I’m showering I see my targets.

Kathy Fettke:
Wow.

Dave Meyers:
Is it these targets, like purchase 15 leases, like these targets you simply … You paper, you wallpaper your own home with them?

Henry Washington:
Sure, I wallpaper my home with my targets in order that I see them in every single place as a result of I simply need to make it that a lot simpler for me to remain targeted on the duties that I’m doing ought to truly be shifting me in the direction of these targets or else it’s in all probability not as essential as I feel it’s as a result of we’ll all get overwhelmed with duties. So these are simply little life hacks that I take advantage of to assist me keep targeted on the issues which can be essential. I simply actually consider that there’s energy in repetition, seeing issues again and again since you’re going to consciously, your efforts will push you. Consciously, you’ll do duties that may push you in the direction of these targets, but in addition subconsciously, you’re going to start out doing issues which can be going to push you towards these targets as effectively.

Dave Meyers:
Man, my lock display on my telephone is only a image of a fried hen sandwich. So I assume that exhibits why you’re extra profitable than I’m.

James Dainard:
How does the sticky notes work contained in the bathe? The one factor I maintain inside my bathe are vitality drinks. So how does sticky be aware work?

Henry Washington:
I neglect what they’re referred to as, however there’s like water bathe … It’s made for the bathe, so the paper’s tremendous sturdy and it’s a pencil that you simply write with so it’s not like ink.

Dave Meyers:
I prefer it.

Henry Washington:
I get them off Amazon. I’ve acquired two or three of these little notepads in my bathe.

James Dainard:
See, I used to be fascinated about getting a cooler for my bathe so I might simply have a chilly quick vitality drinks as quickly as I get in.

Dave Meyers:
Nicely, should you’re making an attempt to give up, James, you bought to modify out the Rockstar’s for Henry’s now.

James Dainard:
I do know.

Henry Washington:
Dude, my spouse has a kind of little beauty fridges that ladies have for his or her cosmetics which can be supposed to remain not room temperature. I don’t know, however I’m like, hmm, I might in all probability toss a beer or two in there, perhaps.

Dave Meyers:
Okay.

Henry Washington:
Proper.

Dave Meyers:
All proper. Nicely, these feels like some formidable nice targets. Is there some other ideas any of you’ve got or ideas on purpose setting that you simply need to impart on our viewers? Kathy?

Kathy Fettke:
With our enterprise, we use a software program referred to as Ninety.io. Ninty is spelled out and it’s type of based mostly on EOS.

Dave Meyers:
Oh, yeah. Yeah.

Kathy Fettke:
Yeah. Conferences are simply such a waste of time more often than not. You’ve acquired the loud mouths who provide you with concepts they usually simply derail the assembly. Lots of people hate conferences. So with Ninety.io, you principally have your headlines. All people simply will get a number of seconds to say one thing that everyone within the firm must know. Then you definitely evaluation your to-dos, that was alleged to be finished final week. So all people is held accountable as a result of it’s on the software program and doesn’t get shot, checked off until it’s finished and also you’ve introduced it and then you definitely go into this part that’s all of the concepts, all of the issues that may be finished to enhance or the problems, principally the issues that have to be mentioned they usually all get put in right here. Then as a bunch, you progress to the highest, the problems that your entire group desires to speak about. There’s a timer on it.
So that you don’t have individuals who simply dominate with their concept that no one cares about. You already know what I’m saying? There’s at all times the loud mouth and that could possibly be me. So this simply retains it on observe. Anybody can name out and say, “Hey, it feels like that is one thing for a subgroup. In case you actually need to get deeper into the how of this, the to-do right here is to arrange a gathering and also you do it offline in order that the entire group doesn’t need to be right here determining this factor that solely two you care about.” So I simply extremely, extremely, extremely advocate Ninety.io as a result of it takes the imaginative and prescient at first of the yr and breaks it out into quarterly steps. What’s the primary chunk of this elephant? What’s the very first thing we have to do? Then you definitely take that quarterly purpose and also you break it down into weekly steps referred to as milestones, and it’s all on that software program. Everybody can see it, everybody can see the way you’re doing on it. It’s been super for us.

Henry Washington:
So one other hack that you are able to do that can assist you obtain your targets is … So like people, we’re all naturally pumped about our targets at first of the yr as a result of all people on Instagram, all people on YouTube is all speaking about targets, plan your targets, set your targets, new Yr’s resolutions, there’s all these items which can be telling us let’s prepare for the brand new yr. So we get targeted for a number of months after which life occurs, issues occur, then we decelerate, perhaps we get off observe. Even essentially the most disciplined folks about their targets will begin to decelerate after about 90 days. So you should utilize that first 90 days to your benefit. So whenever you’re planning your targets, don’t simply plan your targets, however plan a 90-day plan. So take your targets and you may Google 90 day plan. There’s tons of templates, however you may primarily simply break your targets out into the what’s the purpose, who do you want to get it finished, after which what steps are you going to take inside every month within the first 90 days to attain that purpose.
It’s type of like some individuals are best within the morning after which they path off. So that they make the most of the mornings they usually attempt to be as productive as doable in order that in the event that they path off, they nonetheless get numerous issues finished. You are able to do the identical factor together with your targets and attempt to be the most efficient on attaining your targets within the first 90 days. Then, should you path off, you’ve acquired an enormous head begin inside these first 90 days. So that you could be tremendous strategic, plan out these first 90 days and when you’re nonetheless motivated about getting your targets finished, you’ll be capable of accomplish far more of these duties since you’re feeling like that’s what try to be doing earlier than life smacks you within the face after which you want to throw your targets out the window anyway.

Dave Meyers:
That’s an amazing tip. Yeah, it’s like plan to have a plan and plan for the fatigue and perceive that that’s simply human nature.

Henry Washington:
Proper.

Dave Meyers:
Nicely, I really like all the following tips, I really like these targets. I actually admire that every one of you principally stated along with monetary targets have way of life targets too. I imply, most of us make investments for causes which can be simply past simply making some huge cash, but in addition capable of do issues which can be fulfilling to you as effectively that you simply really feel are essential and significant. That’s essential for purpose setting as effectively. I’ve one final purpose setting query for you guys. In case you might create a purpose for the On The Market podcast for 2023, what would that purpose be?

James Dainard:
I feel the primary purpose is to guarantee that David Inexperienced wakes up very unhappy once we take over the primary spot. Nothing in opposition to David Inexperienced, however typically you simply acquired to do one thing to someone cereal and take over that primary spot.

Dave Meyers:
We acquired a protracted method to go, however I just like the ambition of that purpose.

James Dainard:
Yeah, that’s what I’m saying, set huge targets. It’s like, it simply you just-

Dave Meyers:
Yeah.

James Dainard:
I don’t like child steps. Simply go for it.

Dave Meyers:
I’m with you. Let’s do it.

Kathy Fettke:
Dave, what about being on Actual Wealth’s prime 10 podcast record?

James Dainard:
That’s not a purpose. That’s an expectations, Kathy. We have to discuss expectations going ahead.

Dave Meyers:
So for everybody listening, I used to be like, I neglect what I used to be doing, however I used to be like performing some analysis. I Googled prime actual property podcasts a number of months in the past, effectively into in the marketplace, and I discovered Article by Actual Wealth Kathy’s firm for prime actual property podcasts and On The Market was not on it. So I stated it to Kathy, I referred to as her out somewhat bit, was asking why, what we have now to do to make her prime podcast record for subsequent yr.

Kathy Fettke:
So the funniest factor is I didn’t even know that record existed in one of the best half was that by some means my present isn’t primary. I’m like, “That sounds type of self-serving.” Anyway, we should have an amazing search engine optimisation individual because-

Dave Meyers:
Completely. Superb.

James Dainard:
I additionally discovered that record too. So that you do have an search engine optimisation, good search engine optimisation individual.

Kathy Fettke:
I’ll have dialog together with her.

Dave Meyers:
All proper. Nicely, now we’ll see extra trustworthy, we didn’t make it the primary yr. We needed to show ourselves that after … What are we at? 50 one thing episodes at this level that have been worthwhile. All proper. Nicely, my purpose subsequent yr is to get at the least within the prime 5 for investing exhibits. I feel we are able to positively do this. Hopefully make two Dave’s cry. Let’s get David Inexperienced unhappy and Dave Ramsey unhappy in the future. If we might dethrone these two, we’ll know that we’ve achieved one thing nice.

Kathy Fettke:
There’s a brand new Dave on the town.

Dave Meyers:
Oh, wow. That’s so humorous. Yeah, all Dave’s. Nicely, three Dave’s on the prime in the future.

Henry Washington:
I imply, let’s not low cost the truth that we hit a purpose of one million downloads already.

Dave Meyers:
Yeah, we did. That’s unbelievable. Over one million downloads in six months, which is ridiculous.

Henry Washington:
Yeah.

Dave Meyers:
Nicely, we admire all of you for all your help for giving us these good critiques, for sharing it with your pals. I don’t know should you guys have seen this, however I feel yesterday we’re recording this in early December, the Spotify yr wrapped factor got here out. I don’t know should you guys know what that is the place it exhibits you the stuff you take heed to most on Spotify, and I used to be seeing lots of people publish that On The Market was their prime podcast that they listened to in 2022, which was tremendous cool to see. So even when not on the actual charts, we have been in prime of the BiggerPockets charts and above Dave Ramsey on a pair folks’s particular person lists at the least.
So we admire you all. Thanks for supporting the present. Hopefully subsequent yr is one other yr of nice progress for this present. Kathy, James, and Henry, thanks a lot for sharing your targets and your philosophy on setting targets. Actually admire the within look into the way you all take into consideration what you need to accomplish and the way you truly go about engaging in these issues. Let’s simply do a fast reminder right here of how anybody listening to this could join with you. Kathy, the place ought to folks discover you?

Kathy Fettke:
Nicely, in all probability the simplest is on Instagram @Kathy Fettki or at realwealth.com.

Dave Meyers:
All proper, James?

James Dainard:
You could find us on Instagram at jaydaneflips or try jamesdainard.com for only a bunch of free movies. Me strolling by way of nasty Homes.

Dave Meyers:
Henry, what about you?

Henry Washington:
Identical. I’m on the Henry Washington on Instagram or verify me out at henrywashington.com.

Dave Meyers:
All proper, nice. You could find me both on BiggerPockets or on Instagram the place I’m on the Information Deli. Thanks all a lot for listening to this episode On The Market. We’d love should you both go on Instagram or on the BiggerPockets boards, inform us what your targets are for 2023. We’d love to listen to them and the way you’re going to go about setting and engaging in your targets. Thanks once more. We’ll see you subsequent time.
On The Market is Created by me, Dave Meyer and Caitlin Bennett, produced by Caitlin Bennett, modifying by Joel Esparza and Onyx Media, researched by Puja Gendal, and an enormous due to your entire BiggerPockets workforce.
Nicely, content material on the present in the marketplace are opinions solely. All listeners ought to independently confirm information factors, opinions, and funding methods.