Find out how to Construct Greater and Setting SMARTer 2023 Targets

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

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

Dave Meyers:Likewise. We even have James Dainard.

James Dainard:What’s happening guys?

Dave Meyers:Kathy Fettke reside from Dallas proper now.

Kathy Fettke:Hiya. Taking a look at some properties. Tremendous excited.

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

Henry Washington:That’s a reality although. Taking a look at 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 on the lookout for retail stuff although, however Kathy is simply on the lookout for multi-family complexes and it’s simply glowing on the similar time. Or single households.

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

Dave Meyers:I’m with you. All proper. So for those who listened to our present on Monday, we talked rather a lot about 2022 errors that we’ve made, however we’re going to shift to the extra optimistic facet of issues. I’d love to only hear earlier than we go into subsequent yr’s planning, what among the targets you had for 2022 have been and kind 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 checklist of targets? Oh, he’s dancing.

Henry Washington:Yeah, man.

Dave Meyers:Fairly good.

Henry Washington:You realize what’s humorous? The actual property, the market shifts if you’ll, all through 2021 and 2022 form of correlates to how and why I hit sure targets. So my targets fairly excessive degree the place I wished to purchase 15 doorways that hit a ten% money on money return with a internet money circulate 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 for those who take a look at the closings, we now have scheduled earlier than the tip of the yr. That’s one other 16. So we’re going to be at about 46 doorways. So the unique aim 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 via and we didn’t get them. So we hit a number of of them early after which we received a giant chunk as a result of we purchased a industrial workplace complicated 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 initially, after 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 aim. When you tripled your aim for final yr, have you ever set the next 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 aim or a rental property aim after which I’ve a disposition’s aim for my flips, proper? As a result of we flip those we don’t need after which we preserve the remainder. So my flip aim 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 received to about 761,000 on that aim. So a variety of 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 aim. 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 large income, promote every little thing you may that is sensible to, after which redeploy these property into issues that you just’re going to carry long run. Then 2022 was slightly little bit of the other. So we undoubtedly, undoubtedly missed the aim on flips, however that’s okay as a result of we effectively exceeded our aim on holds and I received into this enterprise for ahold. So if I’m going to overshoot one and miss the opposite one, I need it to be this fashion. I need to seize extra doorways that I’m going to maintain eternally.

Dave Meyers:Oh, congrats man, that’s superior. I imply nice to listen to that you just received effectively and above your aim. 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 attempting to get to. The primary one was, I used to be attempting to do $200 million in gross sales as a dealer direct to buyers. That’s been a aim 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 most likely find yourself clocking, we received another month in there, however we’ll most likely be round 160 mil in gross sales, which remains to be nice. However it undoubtedly 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 wished to amass about 4 to 500 extra doorways for our portfolio.We’re going to do that extra via syndicating, not via … Nicely, I form of do that two other ways. Me and my enterprise associate, we do bigger offers collectively after which we do purchase a variety of growth property and we personal it collectively. So we now have our personal set of doorways that are roughly round 1500 doorways in there. So we have been attempting to get that nearer to 2000 by the tip of the yr and we fell brief, we hit about 300 doorways for the acquisition. The reason is, I feel we missed that aim principally it’s as a result of the offers simply weren’t there. It was higher to skip our aim 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 assume that we’re going to have the ability to hit that quantity subsequent yr as a result of the alternatives are undoubtedly 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 wished to lock all of our portfolio charges in. So we spent a variety of time in that final quarter of 2021 and 2022 forecasting our complete portfolio out. As a result of a variety of occasions after we’re shopping for these residence buildings, they’re on 5 yr notes. So what we wished to do is we wished 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 circulate however then additionally stagger out all of our balloon funds as a result of we wished to be sure that we weren’t operating right into a fiscal yr that the place we have been simply going to get crushed with refi’s happening. So we spent a variety of time … We knew 2021 was this loopy progress yr. So at first of 2022, we simply stored with the gross sales however we actually wished to only take a look at every little thing internally, audit it, stabilize every little thing out. So we have been very proud of hitting that aim.We don’t have one mortgage coming due for at the least 4 years and so we don’t have to fret about some kind of fee leap or something like that. In order that was a giant aim for us to hit. Then one different factor that we have been undoubtedly have been pleased with that we hit, we had a aim to do about $20 million in short-term tendencies, which goes to be repair and flip in growth websites. We ended up doing about 30 mil in tendencies.A part of that was most likely 15% progress in values, however we ended up internally via my enterprise associate, we did about 30 mil in tendencies, which I’m actually glad we racked a variety of these within the first two quarters of the yr as a result of I feel it will’ve been rather a lot much less if we might’ve hit into that third quarter. So we undoubtedly truly, on the brief time period within the gross sales facet, we kick very near our targets if not excelled. We didn’t choose up a variety of rental doorways or as a lot as we wished simply because the offers weren’t there. So I’m undoubtedly going to be doubling down on 2023 as we’re seeing higher deal circulate to amass an increasing number of doorways.

Dave Meyers:Nicely, initially, congrats James. It feels like an superior yr total, however it’s fascinating that you just and Henry mainly had swapped experiences. You probably did extra flips and fewer leases the place Henry did the precise reverse.

Henry Washington:Yeah. I additionally wished 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 couple of aim 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 attempting 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 now have 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 larger offers.

Henry Washington:I mentioned 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 downside.

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 electronic mail field. There’s 10 points, allow points, contractor points, however you simply set to work via them and simply work out the way to put the appropriate techniques in there and likewise simply be slightly 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 test my electronic mail, I’m not doing it on a ship.

Dave Meyers:That may be a essential distinction. Nicely, all the hearth emails is an efficient segue as a result of I really feel like Kathy is at all times similar 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 received large fats challenges. However I’d say I win as a result of I achieved a aim 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 aim. Right here I’m. So I’m critical. That’s superb. I used to be snowboarding once I received the e-mail from Caitlin saying that I used to be on and I’ve that ugly face cry, that comfortable face. However you’re like, “Ugh,” that my daughter took an image of. I’ll ship it to you.

Dave Meyers:Oh, we received to put up 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 aim. That was a secret aim. I’m so grateful. On my precise written targets, I’m married to a coach, proper? Wealthy Fettke, he does this for a residing 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 via, however what will we need to do past that? Pushing ourselves. So I had three, and once more that’s Wealthy’s factor is I preserve the massive ones to 3 as a result of the mind can’t deal with greater than that.My large 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 the way to do it. I feel I used to be scared as a result of I haven’t accomplished 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 grow to be 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 wonderful candidate to guide that mastermind, Kathy. So we want you to do it in 2023.

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

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 guide. 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 document it, non-refundable, and he is aware of that I didn’t need to lose hundreds of {dollars}, set the date and he’s like, “That is the date you’re exhibiting up whether or not it’s accomplished or not.” So I did, I revised that guide. It re-recorded, it’s up to date to 2022. So I did that. Actually, actually comfortable.

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 lift charges seven occasions this yr and which means an enormous and sudden slowdown to the financial system. So I knew that was coming and I wished to be ready. So I wished to have a fund as a result of I wished to have a giant bundle of money. Tens of millions and tens of millions of {dollars}. How about 20 million simply prepared to amass? 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 received this one accomplished and I received the appropriate 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 mainly doing her deal, which is shopping for older houses however not too previous. They’re form of gentle 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 anticipate 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 buyers, 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 gross sales volumes, I’m simply going to say this actually fast, however gross sales volumes at present usually are not that totally different than pre-pandemic. Individuals are nonetheless shopping for and promoting houses, however you may’t evaluate yr over yr information. You may’t evaluate now with loopy, proper? You’ve received to return to pre-pandemic. So headlines know the way 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 evaluate now with then. So anyway, I’m thrilled perhaps that different individuals are studying these headlines as a result of we’re moving into and there’s simply not competitors when you may are available in with money, it’s improbable.

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 aim was launching this podcast with all of you, which is true and actually recognize you saying that, Kathy. But in addition recognize all of you and Jamil, wherever he could also be making ready for his TV present launch that you just all helped me make certainly one of my annual and lifelong targets come true, so. That’s a giant one for me. All proper. Let’s take a fast break after which we’re going to come back again and speak about our targets for 2023.All proper. Time for 2023 targets. James, you talked a giant sport about your plan to hit 200 million in gross sales. So let’s hear about this aim and your plan of assault for 2023. I assume is that this a very powerful aim you’re going after subsequent yr?

James Dainard:Nicely, no. Crucial one is to get slightly bit extra. So that they’re form of counter, I received to determine the magic sauce on this as a result of I’m additionally attempting to get slightly bit out of my operational facet of the enterprise on the gross sales facet. So I need to step out extra however then proceed to develop. The explanation I need to do this extra is, I’m attempting to get out of the service facet as a lot and get the appropriate workers and we now have a fantastic workforce, broaden the workforce after which be extra within the investor. As my profession as an investor during the last 18 years, it’s at all times been a variety of fingers on onerous work and getting within the weeds, getting issues accomplished, 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 aim, 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 facet. Then I can focus extra on the funding technique facet, like constructing the appropriate groups to continue to grow. As a result of I do assume there’s going to be a considerable quantity of alternative for the following 12 months. In case you have the appropriate groups collectively, you may actually let your cash work and develop. So I assume the most important one is see my children 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’t get there.What I noticed is it’s as a result of I follow 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 sort of funding that I haven’t at the moment accomplished so as a result of we need to know the way to bundle it, look it and assist folks work via that funding deal. We simply don’t … For instance, on warehouse leasing area, I’ve by no means accomplished that earlier than. We don’t promote that. It’s simply we need to be sure that we’re actually serving to our purchasers via. 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 consumer’s expertise. So I’m going to be truly … To get to this aim 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 secure. 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 facet, that’s for positive. There’s a variety of 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 attempting 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. When you’re a dealer, you didn’t have to fret concerning the advertising plan, you needed to simply throw an indication within the yard and work out the way to feed the provides and work that deal as finest as attainable. That isn’t promoting. That’s feeding provides and that’s negotiating at that time.So a variety of easy habits that you just want so far as an investor, a dealer, a lender, these guidelines received damaged, whether or not it was underwriting, the way you have been doing them, what you have been shopping for, for those who might execute. In order that’s form of shooken up, there’s lots of people … I’ve had considerably quantity of salespeople reaching out to me about careers. Within the development facet, we’ve undoubtedly seen a … It’s getting simpler throughout the board property managers, we’ve been capable of workers up slightly bit extra internally for our syndication properties in our inner leases. Superintendents are undoubtedly beginning to float round much more, development employees as a result of a variety of large 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 slightly bit simpler. Not in all sectors.I feel my basic advertising, accounting, these issues, these are nonetheless onerous to rent for. However our actual property trades the specialists. It undoubtedly 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 growth websites that we will 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 a variety of filth 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 large sectors. So multi-family industrial.We’re simply attempting to broaden it reasonably than simply create extra repair and flip and bur alternatives. We need to create the alternatives in all these totally different segments, which looks like a no brainer to be doing that as you’re rising what you are promoting. However whenever you’re doing this many offers, you get caught within the weeds and also you simply need to get offers accomplished and it’s going effectively. So now we’re attempting to develop the segments and perhaps a part of my enterprise shrink slightly 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 most important factor I did during the last 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 generally is a lot more practical in our massive growth offers, or syndicating, or lending of cash as a result of we accomplish that many alternative issues within the Pacific Northwest, it’s a must to preserve them narrowed in. Then we’re additionally attempting to choose up a thousand extra doorways this yr. I feel we will hit that.

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

James Dainard:I feel there’s going to be a lot alternative. I feel we will do this. We’re going to be doing that via 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 larger offers, the offers are there, however we have to workers up accordingly to maintain these items. So we’re hiring proper now, like we’re shopping for a thousand doorways. I feel we will get in that.We’re very enthusiastic about that as a result of it’s onerous to amass good rental property that may pay a excessive yield in Washington State. So large targets, however you bought to have your targets large. Your targets aren’t large, you don’t grind as onerous. So it retains me on the hamster wheel, however I’ve a sure aim to get to. I desire 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 mentioned, so your philosophy about aim setting is to set large targets. Does that imply, you realize you won’t hit them annually? Or what’s your strategy to how attainable you assume your targets must be and what number of of them you set?

James Dainard:I feel that’s a very good query. I set my targets larger and I feel it is determined by who you’re as an individual. Some folks like that gratification of, “Hey, I received this accomplished, test it off an inventory.” I imply, to be sincere, if I’ve an inventory and I received to cross issues off, it is vitally gratifying. Like, “That is accomplished, that is accomplished.” There’s one thing about that that’s … Okay, even when it’s, “Hey, I picked up my groceries accomplished,” however I’m an individual that I like failure makes me work more durable. Success generally makes me slightly … 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 attempting to push myself to that code pink. Normally which means hit attempting to get to a aim that I couldn’t hit or that I believed it will be an extended shot. I’d reasonably have an extended shot aim than a straightforward one. I don’t must knock that. The larger image is what I’m chasing and if I don’t hit my aim, I get anxiousness and it makes me work more durable, smarter and do it in another way/ it’s one of the simplest ways for me to do it, however it’s not for everyone.

Dave Meyers:Nervousness 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 anxiousness and it turns into a complete basket case and also you simply get issues accomplished.

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

James Dainard:That’s certainly one of my largest targets for 2023. Stop consuming Rockstar. It’s a giant 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 now have targets we will’t hit?”

Dave Meyers:Nicely, James, I completely relate, however let’s go to Kathy. I really feel like she most likely has a more healthy thought of the way 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 similar 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 way in which simply received a police automotive that the little ones guys might drive. So now each evening, he patrols the neighborhood together with his police automotive.

Dave Meyers:Yeah. That’s lovely. I wished a kind of so unhealthy once I was a child. What are they known as? Energy wheels?

Henry Washington:Energy wheels.

Dave Meyers:Energy wheels, proper? Yeah.

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

James Dainard:Yeah. What occurred? That was often for the actually cool children. Now I see them all over the place and I’m like-

Dave Meyers:Yeah.

James Dainard:When 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 positive. Nicely, what have been we speaking about? Oh, targets, Kathy, you mentioned three targets, proper? That’s what you set. So do you might have your three targets for subsequent yr but?

Kathy Fettke:We often sit down on New 12 months’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 will likely be, I’ve already mentioned it. I’m going to have and launch probably the most superior girls’s mastermind. Can’t wait. That can be absolutely flushed out by I feel earlier than January. So perhaps that’s nonetheless a, this yr aim. Perhaps you’ll truly hit the aim 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 received 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 on the lookout for a citizenship. Krista was with me in Portugal, fell in love with Portugal, fell in love with the thought of the Golden Visa program. She wished 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 certainly one of my targets is to assist my daughter. I’m a component proprietor on this enterprise now and assist her launch this factor. So I’d say for 2023, actually residing that dream of being in partnership with my daughter on one thing she’s tremendous keen about.

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

Kathy Fettke:So enjoyable. So enjoyable to see her. All people … Not all people, however a variety of occasions you need your children to work and what you are promoting 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 understand you’re the most effective they usually should 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 retaining that rising after which the massive one is working via among the initiatives that I began years in the past which have been difficult. Now we have floor up growth initiatives, so this can be a powerful time for builders. So my aim is after all to do as finest as I can for our buyers. We truly offered out two of our subdivisions early this yr, so the timing was nice, however we’ve received three extra. So simply giving all of it every little thing. I’ve received creativity, advertising, working, like I mentioned 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 should pay for the entire house as a result of who makes use of their trip house on a regular basis? Individuals 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 this can be a solution 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 the most effective I can for my buyers. Now what Wealthy would say is make it sensible. Actually received 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, for those who don’t know what Kathy’s speaking about, about SMART targets, this can be a actually common aim 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 aim to be efficient, it must be a selected aim. Solutions query, what must be achieved, who’s accountable for it, what steps should be taken to attain it. M is for measurable. I feel that is tremendous necessary.Clearly, I’m a knowledge nerd, however quantifying your targets makes it simpler to trace your progress. You’ve got to have the ability to preserve rating if you wish to set a aim. A is achievable. So James, I don’t know in case your large targets would fall into the SMART targets, however I prefer it. Achievable, however formidable must be the A. R is related in order that it’s truly necessary to you and that it’s necessary to your large image. T is time-bound, which I feel is absolutely necessary too. It’s a must to give your self a deadline. So for those who’re curious about aim setting and desire 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 possibly 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 aim is a variety of the work it is advisable to accomplish your aim. When 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 a variety of the work for lots of those targets. So it forces you to take among 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 aim setting?

Henry Washington:So yeah, my targets for 2023, I wish to preserve them easy. So I form of simply carry over the identical targets after which both regulate 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. Need 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 usher in someone to do acquisitions. I need to get a private assistant to assist me with among 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 children extra. However for me, what’s necessary about targets is A, that you’ve them. Proper? So it is advisable to write your targets down. I feel there’s one thing highly effective about truly writing them, like placing pen to paper. You may sort 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 among the hacks that I do with my targets is just not solely do I write them down, however I write them a number of occasions a day. So each day once I get up within the morning, I work out after which I sit down and I write my targets over and over. 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 over and over as a result of for me, it’s a mindset hack and other people get little flu, flu whenever you speak about mindset, however for me a mindset is a psychological instrument to assist me keep bodily disciplined with the duties. So me writing them each day is absolutely 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 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 type after which I’ll save them as a imaginative and prescient board on the house display screen in my cellphone, simply in order that … I received your cellphone in my hand all day.So each time I am going to unlock my cellphone, 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 only look and see, “Okay, if what I’m doing proper now isn’t shifting me nearer to certainly one of these targets on my cellphone, 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 mentioned, you get up and also you’ve received the fires in your inbox and it’s simple to only deal with these fires. However generally what I’ve seen is all these fires aren’t actually fires and all these fires don’t actually take me to do one thing.Typically 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 large of a deal. So it helps me to remain targeted. It helps me to at all times bear in mind the issues I should be engaged on should be pushing me in direction of these targets. Then I additionally like to jot down my targets down after which I stick them all over the place. So in my workplace you may’t see it. However on the wall right here, on the facet, on the sticky word, I’ve received targets written down over and over. On my workplace at house, similar factor hanging from my screens are my targets. Subsequent to my mattress, I’ve my targets. I even have my targets on a sticky word 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 home with them?

Henry Washington:Sure, I wallpaper my home with my targets in order that I see them all over the 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 direction of these targets or else it’s most likely not as necessary 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 necessary. I simply actually consider that there’s energy in repetition, seeing issues over and over since you’re going to consciously, your efforts will push you. Consciously, you’ll do duties that may push you in direction of these targets, but additionally subconsciously, you’re going to begin doing issues which can be going to push you towards these targets as effectively.

Dave Meyers:Man, my lock display screen on my cellphone 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 preserve inside my bathe are vitality drinks. So how does sticky word work?

Henry Washington:I overlook what they’re known 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 just write with so it’s not like ink.

Dave Meyers:I prefer it.

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

James Dainard:See, I used to be eager 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, for those who’re attempting to give up, James, you bought to change 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 girls 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 most likely 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 another ideas any of you might have or ideas on aim setting that you just need to impart on our viewers? Kathy?

Kathy Fettke:With our enterprise, we use a software program known as Ninety.io. Ninty is spelled out and it’s form 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 received the loud mouths who give you concepts they usually simply derail the assembly. Lots of people hate conferences. So with Ninety.io, you mainly 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 definately evaluation your to-dos, that was presupposed to be accomplished 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 accomplished 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 accomplished to enhance or the problems, mainly the issues that should be mentioned they usually all get put in right here. Then as a bunch, you progress to the highest, the problems that the complete 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 person cares about. You realize what I’m saying? There’s at all times the loud mouth and that may very well be me. So this simply retains it on monitor. Anybody can name out and say, “Hey, it feels like that is one thing for a subgroup. When 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 should 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 originally 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 definately take that quarterly aim and also you break it down into weekly steps known 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 originally 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 12 months’s resolutions, there’s all this stuff 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 monitor. Even probably the most disciplined folks about their targets will begin to decelerate after about 90 days. So you should use 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’ll Google 90 day plan. There’s tons of templates, however you may basically simply break your targets out into the what’s the aim, who do it is advisable to get it accomplished, after which what steps are you going to take inside every month within the first 90 days to attain that aim.It’s form of like some individuals are most efficient within the morning after which they path off. So that they benefit from the mornings they usually attempt to be as productive as attainable in order that in the event that they path off, they nonetheless get a variety of issues accomplished. 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, for those who path off, you’ve received a giant head begin inside these first 90 days. So that you will be tremendous strategic, plan out these first 90 days and whilst you’re nonetheless motivated about getting your targets accomplished, you’ll have the ability to 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 it is advisable to throw your targets out the window anyway.

Dave Meyers:That’s a fantastic 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 like all the following tips, I like these targets. I actually recognize that every one of you mainly mentioned 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 additionally capable of do issues which can be fulfilling to you as effectively that you just really feel are necessary and significant. That’s crucial for aim setting as effectively. I’ve one final aim setting query for you guys. When you might create a aim for the On The Market podcast for 2023, what would that aim be?

James Dainard:I feel the primary aim is to be sure that David Inexperienced wakes up very unhappy after we take over the primary spot. Nothing towards David Inexperienced, however generally you simply received to do one thing to someone cereal and take over that primary spot.

Dave Meyers:We received an extended solution to go, however I just like the ambition of that aim.

James Dainard:Yeah, that’s what I’m saying, set large 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 high 10 podcast checklist?

James Dainard:That’s not a aim. That’s an expectations, Kathy. We have to speak about expectations going ahead.

Dave Meyers:So for everybody listening, I used to be like, I overlook what I used to be doing, however I used to be like doing a little analysis. I Googled high 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 high actual property podcasts and On The Market was not on it. So I mentioned it to Kathy, I known as her out slightly bit, was asking why, what we now have to do to make her high podcast checklist for subsequent yr.

Kathy Fettke:So the funniest factor is I didn’t even know that checklist existed in the most effective half was that by some means my present isn’t primary. I’m like, “That sounds form of self-serving.” Anyway, we should have a fantastic search engine marketing particular person because-

Dave Meyers:Completely. Excellent.

James Dainard:I additionally discovered that checklist too. So that you do have an search engine marketing, good search engine marketing particular person.

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

Dave Meyers:All proper. Nicely, now we’ll see extra sincere, 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 aim subsequent yr is to get at the least within the high 5 for investing exhibits. I feel we will undoubtedly do this. Hopefully make two Dave’s cry. Let’s get David Inexperienced unhappy and Dave Ramsey unhappy at some point. 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 high at some point.

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

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

Henry Washington:Yeah.

Dave Meyers:Nicely, we recognize all of you for all your help for giving us these good critiques, for sharing it with your mates. I don’t know for those who 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 for those who guys know what that is the place it exhibits you the belongings you take heed to most on Spotify, and I used to be seeing lots of people put up that On The Market was their high 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 high of the BiggerPockets charts and above Dave Ramsey on a pair folks’s particular person lists at the least.So we recognize 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 recognize the within look into the way you all take into consideration what you need to accomplish and the way you truly go about conducting these issues. Let’s simply do a fast reminder right here of how anybody listening to this may join with you. Kathy, the place ought to folks discover you?

Kathy Fettke:Nicely, most likely the simplest is on Instagram @Kathy Fettki or at realwealth.com.

Dave Meyers:All proper, James?

James Dainard:You will discover us on Instagram at jaydaneflips or try jamesdainard.com for only a bunch of free movies. Me strolling via nasty Homes.

Dave Meyers:Henry, what about you?

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

Dave Meyers:All proper, nice. You will discover 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 for those who 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 conducting 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, enhancing by Joel Esparza and Onyx Media, researched by Puja Gendal, and a giant because of the complete 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.