Construct Larger and Setting SMARTer 2023 Objectives

Dave Meyers:Hey, what’s up everybody? Welcome to On the Market. I’m your host, Dave Meyer, and immediately we’re going to be speaking about 2023 targets. First, we’ll evaluate the targets that we’ve got 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 dwell from Dallas proper now.

Kathy Fettke:Hiya. Taking a look at 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. Taking a look at properties all the time will get me excessive.

Dave Meyers:Yeah.

James Dainard:Glowing why she’s buying. Who doesn’t glow after 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 identical 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 if you happen to listened to our present on Monday, we talked loads about 2022 errors that we’ve made, however we’re going to shift to the extra constructive aspect 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 type 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 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 circulation of … I shoot between three and 500 a door. So for 2022, we ended up doing, let’s see, we’re presently at 30 doorways that we purchased and that hit that quantity that we’re holding. Then if you happen to have a look at the closings, we’ve got 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 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. Effectively, I assume initially, after we get to the a part of the present, we’re going to speak about 2023 targets. We have now to carry you accountable for a stretch aim. In case 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 maintain 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 acquired 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 approach 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 massive earnings, promote the whole lot you may that is sensible to, after which redeploy these belongings into issues that you simply’re going to carry long run. Then 2022 was just a little 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 acquired 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 perpetually.

Dave Meyers:Oh, congrats man, that’s superior. I imply nice to listen to that you simply acquired 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 just a few 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 traders. That’s been a aim mine for a pair years now. I haven’t fairly hit that mark fairly but. We ended up falling quick on that and we did about … We’ll in all probability find yourself clocking, we acquired another month in there, however we’ll in all probability be round 160 mil in gross sales, which remains to be nice. But it surely 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 needed to amass about 4 to 500 extra doorways for our portfolio.We’re going to do that extra via syndicating, not via … Effectively, I type of do that two alternative ways. Me and my enterprise companion, we do bigger offers collectively after which we do purchase a variety of growth property and we personal it collectively. So we’ve got 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 quick, we hit about 300 doorways for the acquisition. The reason is, I believe we missed that aim largely 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 suppose 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 needed 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 entire portfolio out. As a result of a variety of occasions after 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 circulation however then additionally stagger out all of our balloon funds as a result of we needed to ensure that we weren’t operating right into a fiscal yr that the place we have been simply going to get crushed with refi’s occurring. So we spent a variety of 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 only have a look at the whole lot internally, audit it, stabilize the whole lot out. So we have been very pleased with hitting that aim.We don’t have one mortgage coming due for not less than 4 years and so we don’t have to fret about some type of charge soar or something like that. In order that was an enormous aim for us to hit. Then one different factor that we have been undoubtedly have been happy 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 in all probability 15% progress in values, however we ended up internally via my enterprise companion, 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 believe it might’ve been loads much less if we might’ve hit into that third quarter. So we undoubtedly truly, on the quick time period within the gross sales aspect, we kick very near our targets if not excelled. We didn’t decide up a variety of rental doorways or as a lot as we needed simply because the offers weren’t there. So I’m undoubtedly going to be doubling down on 2023 as we’re seeing higher deal circulation to amass increasingly doorways.

Dave Meyers:Effectively, initially, congrats James. It appears like an superior yr total, but it surely’s fascinating 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 after 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:Objectives.

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’ll be Henry, we’ve got 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 stated yesterday earlier than you truly have been capable of hop on due to your technical difficulties that everyone wants James Dainard issues. I might love a James Dainard. I’m chasing $200 million drawback.

Dave Meyers:Fell quick 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 started working via them and simply determine easy methods to put the proper methods in there and likewise simply be just a little 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 after I test my e mail, I’m not doing it on a ship.

Dave Meyers:That could be a vital distinction. Effectively, all the fireplace emails is an efficient segue as a result of I really feel like Kathy is all the time similar to the zen investor. No stress, simply all the time 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 massive fats challenges. However I might 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 all the time 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 severe. That’s wonderful. I used to be snowboarding after 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 fallacious, 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 crucial 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 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 large ones to 3 as a result of the mind can’t deal with greater than that.My massive 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 believe I simply didn’t know fairly … That’s an excuse to say I didn’t know easy methods to do it. I believe I used to be scared as a result of I haven’t performed it earlier than. So I simply did one and I believe it was actually enjoyable and went effectively. In order that’ll be subsequent yr as a result of I simply actually imagine in girls serving to girls turn out to be higher leaders. We nonetheless have work to do. We nonetheless have work to do there. Nonetheless not a feminine president.

Dave Meyers:Effectively, 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 recognize that. I’m going to do it. Okay. Then my second one was to complete my revision of my e-book. I wrote “Retire Wealthy with Leases” in 2014. It was so outdated. Then, after I acquired on this present, I’m like, “Oh, no. Persons are going to learn that e-book they usually’re going to be like, none of this is sensible. None of it’s doable immediately.” 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:In fact.

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 e-book. It’s very outdated.” So I’m like, “Sure, assist me.” So he set an appointment on the audio recording studio the place I might 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 performed or not.” So I did, I revised that e-book. 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 meaning a large 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. Tens of millions and hundreds of thousands of {dollars}. How about 20 million simply prepared to amass? We did it.I discovered my good companion. I’m right here in Dallas proper now, able to go meet along with her. We’re going to go have a look at the acquisitions that we’re about to go after. I’m tremendous proud as a result of I acquired this one performed and I acquired the proper companion and he or she’s each a property supervisor right here in Dallas. I’ve been working along with her for 10 years. I do know her very effectively and he or she’s excited and he or she’s principally doing her deal, which is shopping for older properties however not too outdated. They’re type 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 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 individuals imagine headlines which we’re gross sales volumes, I’m simply going to say this actually fast, however gross sales volumes immediately will not be that completely different than pre-pandemic. Persons are nonetheless shopping for and promoting properties, however you may’t examine yr over yr knowledge. You’ll be able to’t examine now with loopy, proper? You’ve acquired to return to pre-pandemic. So headlines know easy methods to freak individuals out. They’re evaluating now from final yr, which was an unprecedented yr. Don’t do it. Don’t have 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 getting into and there’s simply not competitors when you may are available in with money, it’s implausible.

Dave Meyers:Superior. Effectively, 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 additionally recognize 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 every of 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 aim and your plan of assault for 2023. I assume is that this crucial aim you’re going after subsequent yr?

James Dainard:Effectively, no. A very powerful one is to get just a little bit extra. In order that they’re type of counter, I acquired to determine the magic sauce on this as a result of I’m additionally attempting to get just a little 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 explanation I need to try this extra is, I’m attempting to get out of the service aspect as a lot and get the proper employees and we’ve got an awesome crew, develop the crew after which be extra within the investor. As my profession as an investor during the last 18 years, it’s all the time been a variety of palms on onerous work and getting within the weeds, getting issues performed, fixing issues. As I’m getting older and doing extra offers and getting extra capital, I need to be extra passive.So meaning I actually need to concentrate on 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 individuals that may take over as operators within the shopper 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. In case 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 concentrate on 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 stick 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 sort of funding that I haven’t presently performed so as a result of we need to know easy methods to package deal it, look it and assist individuals work via that funding deal. We simply don’t … For instance, on warehouse leasing house, I’ve by no means performed that earlier than. We don’t promote that. It’s simply we need to ensure that we’re actually serving to our shoppers via. However that’s all the time based mostly on my expertise, that doesn’t imply I can’t deliver in additional individuals 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 crew, which lots of people are shrinking their gross sales crew for this 2023. Everyone’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 straightforward 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 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 fireplace. What that did is even for skilled brokers or new brokers, it A, introduced lots of people into the enterprise that perhaps actually weren’t actual property individuals. They have been simply attempting to become profitable. The second factor is, what it did is individuals gotten actually lazy on their day by day behavior. It began turning into too straightforward. In case 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 determine 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 a variety of 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, if you happen to may 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 building aspect, we’ve undoubtedly seen a … It’s getting simpler throughout the board property managers, we’ve been capable of employees up just a little bit extra internally for our syndication properties in our inner leases. Superintendents are undoubtedly beginning to float round much more, building staff as a result of a variety of massive 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 just a little bit simpler. Not in all sectors.I believe my normal 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 house 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 massive sectors. So multi-family industrial.We’re simply attempting to develop 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 as if a no brainer to be doing that as you’re rising your corporation. However if you’re doing this many offers, you get caught within the weeds and also you simply need to get offers performed and it’s going effectively. So now we’re attempting to develop the segments and perhaps a part of my enterprise shrink just a little bit simply to concentrate on the expansion of those. That’s what I needed to get to. I’m okay doing that.I believe that was the largest factor I did during the last month was actually do some soul looking out 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 simpler in our massive growth offers, or syndicating, or lending of cash as a result of we achieve this many various issues within the Pacific Northwest, it’s a must to maintain them narrowed in. Then we’re additionally attempting to choose up a thousand extra doorways this yr. I believe 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 believe there’s going to be a lot alternative. I believe we will try this. We’re going to be doing that via 10, 31 trade crew. 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 individuals not shopping for larger 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 believe 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 massive targets, however you bought to have your targets massive. Your targets aren’t massive, you don’t grind as onerous. So it retains me on the hamster wheel, however I’ve a sure aim 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 save lots of 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:Effectively, so James, I need to ask you earlier than we transfer on, such as you stated, so your philosophy about aim setting is to set massive targets. Does that imply, you already know you won’t 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 believe that’s an excellent query. I set my targets larger and I believe it is determined by who you’re as an individual. Some individuals like that gratification of, “Hey, I acquired this performed, test it off a listing.” I imply, to be sincere, if I’ve a listing and I acquired to cross issues off, it is extremely gratifying. Like, “That is performed, that is performed.” There’s one thing about that that’s … Okay, even when it’s, “Hey, I picked up my groceries performed,” however I’m an individual that I like failure makes me work more durable. Success typically makes me just a little … 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 prefer to make it to the place I’m all the time attempting to push myself to that code purple. Normally meaning hit attempting to get to a aim that I couldn’t hit or that I believed it might be an extended shot. I’d moderately 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 nervousness and it makes me work more durable, smarter and do it in a different way/ it’s one of the best ways for me to do it, but it surely’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 approach an excessive amount of caffeine nervousness and it turns into a complete basket case and also you simply get issues performed.

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

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

Henry Washington:Effectively, 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’ve got targets we will’t hit?”

Dave Meyers:Effectively, James, I completely relate, however let’s go to Kathy. I really feel like she in all probability has a more healthy concept 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 believe life simply has a approach of calming you down as you grow 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 if you’re in Downdog. It’s similar to perhaps it’s time to chill out. 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 acquired a police automobile that the little ones guys may drive. So now each evening, he patrols the neighborhood along with his police automobile.

Dave Meyers:Yeah. That’s lovable. I needed a kind of so unhealthy after 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 all over the 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. Effectively, what have been we speaking about? Oh, targets, Kathy, you stated three targets, proper? That’s what you set. So do you have got your three targets for subsequent yr but?

Kathy Fettke:We normally 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 stated it. I’m going to have and launch essentially the most superior girls’s mastermind. Can’t wait. That will probably be totally flushed out by I believe 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 acquired two daughters and the youngest one’s 23 and a dream has been to work along with her, work with each daughters. So the 23-year-old got here to … I truly went to Europe along with her this summer season and he or she got here with me to Portugal to have 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 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 every of my targets is to assist my daughter. I’m an element proprietor on this enterprise now and assist her launch this factor. So I might 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 really like that.

Kathy Fettke:So enjoyable. So enjoyable to see her. Everyone … Not all people, however a variety of occasions you need your youngsters to work and your corporation 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 the most effective they usually need to go discover that out. However she was prepared and he or she got here to us wanting to do that and he or she’s been booked with three, 4 conversations a day already with individuals in-

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

Kathy Fettke:What else? Clearly, the fund protecting that rising after which the large one is working via among the initiatives that I began years in the past which were difficult. We have now floor up growth initiatives, so it is a robust time for builders. So my aim is in fact 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 the whole lot. I’ve acquired creativity, advertising, working, like I stated with our high-end luxurious properties. We’re working with the shared trip mannequin with Ember Properties, which is like Picasso. And that’s only a phenomenal mannequin the place individuals can have these trip properties and never need to pay for the entire dwelling as a result of who makes use of their trip dwelling on a regular basis? Individuals don’t.It’s a waste of house. It’s a waste of land for individuals to have these trip properties they don’t use. I imply the place I dwell in Malibu, it’s 50% occupied as a result of all these wealthy individuals personal properties which can be empty and that’s not nice. So it is a strategy to share that in order that there’s shared possession in these trip properties. 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 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. Effectively, if you happen to don’t know what Kathy’s speaking about, about SMART targets, it is a actually well-liked 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 particular aim. Solutions query, what must be completed, who’s answerable for it, what steps have to be taken to attain it. M is for measurable. I believe that is tremendous essential.Clearly, I’m a knowledge nerd, however quantifying your targets makes it simpler to trace your progress. You will have to have the ability to maintain rating if you wish to set a aim. A is achievable. So James, I don’t know in case your massive targets would fall into the SMART targets, however I prefer it. Achievable, however bold ought to be the A. R is related in order that it’s truly essential to you and that it’s essential to your massive image. T is time-bound, which I believe is basically essential too. You need to give your self a deadline. So if you happen to’re all for aim setting and need a framework, SMART targets is a very, actually great way to do 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 might seem like.” So you would 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’s good to accomplish your aim. In case you can determine what particularly you need it to be and what the metric of success is and if 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 concentrate on 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 prefer to maintain them easy. So I type of simply carry over the identical targets after which both modify 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 trying 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 individuals 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 may take social media off my plate so I may 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 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 essential about targets is A, that you’ve them. Proper? So it’s good to write your targets down. I believe there’s one thing highly effective about truly writing them, like placing pen to paper. You’ll be able to sort them and that’s cool. However after 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 shouldn’t be solely do I write them down, however I write them a number of occasions a day. So each day after I get up within the morning, I work out after which I sit down and I write my targets time 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 time and again as a result of for me, it’s a mindset hack and folks get little flu, flu if you discuss 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 basically 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 after 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 in my telephone, simply in order that … I acquired your telephone in my hand all day.So each time I am 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 after I get overwhelmed, it’s very straightforward for me to only look and see, “Okay, if what I’m doing proper now isn’t shifting me nearer to one in every of 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 straightforward to only concentrate on 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.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 care for. It’s not that massive of a deal. So it helps me to remain centered. It helps me to all the time bear in mind the issues I have to be engaged on have to 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 aspect, on the sticky notice, I’ve acquired targets written down time 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 notice within the bathe in order that after 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 all over the place as a result of I simply need to make it that a lot simpler for me to remain centered on the duties that I’m doing ought to truly be shifting me in direction of these targets or else it’s in all probability not as essential as I believe it’s as a result of we’ll all get overwhelmed with duties. So these are simply little life hacks that I exploit to assist me keep centered on the issues which can be essential. I simply actually imagine that there’s energy in repetition, seeing issues time and again since you’re going to consciously, your efforts will push you. Consciously, you’ll do duties that can push you in direction of these targets, but in addition 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 on my telephone is only a image of a fried rooster sandwich. So I assume that reveals 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 power drinks. So how does sticky notice work?

Henry Washington:I overlook 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 excited about getting a cooler for my bathe so I may simply have a chilly quick power drinks as quickly as I get in.

Dave Meyers:Effectively, if you happen to’re attempting to stop, 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 may in all probability toss a beer or two in there, perhaps.

Dave Meyers:Okay.

Henry Washington:Proper.

Dave Meyers:All proper. Effectively, these appears like some bold nice targets. Is there every other ideas any of you have got or ideas on aim 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 give you concepts they usually simply derail the assembly. Lots of people hate conferences. So with Ninety.io, you principally have your headlines. Everyone simply will get just a few seconds to say one thing that everyone within the firm must know. Then you definitely evaluate your to-dos, that was alleged to be performed 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 performed and also you’ve introduced it and then you definately go into this part that’s all of the concepts, all of the issues that may be performed 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 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 one cares about. You already know what I’m saying? There’s all the time the loud mouth and that might be me. So this simply retains it on monitor. Anybody can name out and say, “Hey, it appears 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 firstly 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 aim 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 large for us.

Henry Washington:So one other hack that you are able to do that will help you obtain your targets is … So like people, we’re all naturally pumped about our targets firstly 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 centered for just a few months after which life occurs, issues occur, then we decelerate, perhaps we get off monitor. Even essentially the most disciplined individuals about their targets will begin to decelerate after about 90 days. So you need to use that first 90 days to your benefit. So if 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 aim, who do it’s good to get it performed, after which what steps are you going to take inside every month within the first 90 days to attain that aim.It’s type of like some individuals are best within the morning after which they path off. In order that they benefit from the mornings they usually attempt to be as productive as doable in order that in the event that they path off, they nonetheless get a variety of issues performed. You are able to do the identical factor together with your targets and attempt to be the best on attaining your targets within the first 90 days. Then, if you happen to path off, you’ve acquired an enormous head begin inside these first 90 days. So that you might be tremendous strategic, plan out these first 90 days and when you’re nonetheless motivated about getting your targets performed, you’ll be capable to accomplish far more of these duties since you’re feeling like that’s what you need to be doing earlier than life smacks you within the face after which it’s good to throw your targets out the window anyway.

Dave Meyers:That’s an awesome 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:Effectively, I really like all the following pointers, I really like these targets. I actually recognize 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 aim setting as effectively. I’ve one final aim setting query for you guys. In case you may create a aim for the On The Market podcast for 2023, what would that aim be?

James Dainard:I believe the primary aim is to ensure that David Inexperienced wakes up very unhappy after we take over the primary spot. Nothing towards David Inexperienced, however typically you simply acquired to do one thing to someone cereal and take over that primary spot.

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

James Dainard:Yeah, that’s what I’m saying, set massive 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 checklist?

James Dainard:That’s not a aim. That’s an expectations, Kathy. We have to discuss 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 prime actual property podcasts just a few 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 just a little bit, was asking why, what we’ve got to do to make her prime 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 type of self-serving.” Anyway, we should have an awesome search engine optimisation individual because-

Dave Meyers:Completely. Excellent.

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

Kathy Fettke:I’ll have an excellent dialog along with her.

Dave Meyers:All proper. Effectively, 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. Effectively, my aim subsequent yr is to get not less than within the prime 5 for investing reveals. I believe we will undoubtedly try this. Hopefully make two Dave’s cry. Let’s get David Inexperienced unhappy and Dave Ramsey unhappy someday. If we may dethrone these two, we’ll know that we’ve completed 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. Effectively, three Dave’s on the prime someday.

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:Effectively, we recognize all of you for all your help for giving us these good opinions, for sharing it with your mates. I don’t know if you happen to guys have seen this, however I believe yesterday we’re recording this in early December, the Spotify yr wrapped factor got here out. I don’t know if you happen to guys know what that is the place it reveals you the belongings you hearken 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 individuals’s particular person lists not less than.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 carrying out 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 individuals discover you?

Kathy Fettke:Effectively, in all probability the best 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 take a look at jamesdainard.com for only a bunch of free movies. Me strolling via nasty Homes.

Dave Meyers:Henry, what about you?

Henry Washington:Similar. 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 Knowledge Deli. Thanks all a lot for listening to this episode On The Market. We’d love if you happen to 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 carrying out 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 complete BiggerPockets crew.Effectively, content material on the present in the marketplace are opinions solely. All listeners ought to independently confirm knowledge factors, opinions, and funding methods.