Find out how to Construct Greater and Setting SMARTer 2023 Objectives

Dave Meyers:
Hey, what’s up everybody? Welcome to On the Market. I’m your host, Dave Meyer, and in the present day we’re going to be speaking about 2023 targets. First, we are going to evaluation the targets that we have now for 2022, what we hit, perhaps what we failed at, after which speak about what we’re trying ahead to and aiming for in 2023. For this dialog, I’ve my pal 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:
Hey. some properties. Tremendous excited.

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

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

Dave Meyers:
Yeah.

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

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

Kathy Fettke:
Some girls like to purchase 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 loads about 2022 errors that we’ve made, however we’re going to shift to the extra optimistic aspect of issues. I’d love to simply hear earlier than we go into subsequent 12 months’s planning, what among the targets you had for 2022 had been and form of the way you carried out on them. So Henry, let’s begin with you. What had been a few of your targets, and the way’d you do in your record of targets? Oh, he’s dancing.

Henry Washington:
Yeah, man.

Dave Meyers:
Fairly good.

Henry Washington:
You already know what’s humorous? The true property, the market shifts if you’ll, all through 2021 and 2022 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 web money movement of … I shoot between three and 500 a door. So for 2022, we ended up doing, let’s see, we’re at the moment at 30 doorways that we purchased and that hit that quantity that we’re holding. Then for those who have a look at the closings, we have now scheduled earlier than the tip of the 12 months. 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 underneath contract and a few of these ended up falling by way of and we didn’t get them. So we hit a number of of them early after which we bought a giant chunk as a result of we purchased a business workplace advanced and that wasn’t on the plan for this 12 months, however that had 11 models in it. Then we’re closing the 12 months 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 12 months, have you ever set a better one?

Henry Washington:
That’s why I led with how the market is talking to those targets as a result of I sometimes 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 hold the remaining. So my flip aim was to do about 15 flips and attempt to hit about 1.2 million and we had been effectively underneath that. So so far as the quantity, we did 18 however we solely bought to about 761,000 on that aim. So a number of these had been smaller flips, a few of these had 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 every part you’ll be able to that is sensible to, after which redeploy these belongings into issues that you just’re going to carry long run. Then 2022 was somewhat little bit of the alternative. So we positively, positively missed the aim on flips, however that’s okay as a result of we effectively exceeded our aim on holds and I bought into this enterprise for ahold. So if I’m going to overshoot one and miss the opposite one, I would like it to be this manner. I wish 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 bought effectively and above your aim. James, what about you? What had 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 couple 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 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 brief on that and we did about … We’ll most likely find yourself clocking, we bought yet another month in there, however we’ll most likely be round 160 mil in gross sales, which continues to be nice. But it surely positively one thing we’re pushing to get to, I’ve created the plan to get to 200 million subsequent 12 months. Different targets that I had was we wished to accumulate about 4 to 500 extra doorways for our portfolio.
We’re going to do that extra by way of syndicating, not by way of … Effectively, I form of do that two alternative ways. Me and my enterprise accomplice, we do bigger offers collectively after which we do purchase a number of growth property and we personal it collectively. So we have now our personal set of doorways that are roughly round 1500 doorways in there. So we had been attempting to get that nearer to 2000 by the tip of the 12 months and we fell brief, we hit about 300 doorways for the acquisition. The reason is, I believe 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’ll be able to’t drive it in. I do assume that we’re going to have the ability to hit that quantity subsequent 12 months as a result of the alternatives are positively there and we’ve already boughten considerably extra doorways within the final 60 days than we did all earlier 12 months 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 number of time in that final quarter of 2021 and 2022 forecasting our entire portfolio out. As a result of a number of occasions after we’re shopping for these residence buildings, they’re on 5 12 months notes. So what we wished to do is we wished to stagger all of our loans out. A, lock the charges that had been low cost. So we’re in a position to get actually good cash on all these offers and enhance the money movement however then additionally stagger out all of our balloon funds as a result of we wished to guarantee that we weren’t working right into a fiscal 12 months that the place we had been simply going to get crushed with refi’s happening. So we spent a number of time … We knew 2021 was this loopy development 12 months. So to start with of 2022, we simply stored with the gross sales however we actually wished to simply have a look at every part internally, audit it, stabilize every part out. So we had been very pleased with 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 form of price leap or something like that. In order that was a giant aim for us to hit. Then one different factor that we had been positively had 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% development in values, however we ended up internally by way of my enterprise accomplice, we did about 30 mil in tendencies, which I’m actually glad we racked a number of these within the first two quarters of the 12 months as a result of I believe it will’ve been loads much less if we’d’ve hit into that third quarter. So we positively really, on the brief time period within the gross sales aspect, we kick very near our targets if not excelled. We didn’t decide up a number of rental doorways or as a lot as we wished simply because the offers weren’t there. So I’m positively going to be doubling down on 2023 as we’re seeing higher deal movement to accumulate an increasing number of doorways.

Dave Meyers:
Effectively, initially, congrats James. It feels like an superior 12 months total, nevertheless 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 few aim of hitting 1.2 million and doing 15 flips, James is like, “I wish 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 wish to make 1,000,000 off of my 10 offers.

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

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

Henry Washington:
I stated yesterday earlier than you really had been in a position to 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 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 fireplace in my e mail field. There’s 10 points, allow points, contractor points, however you simply started working by way of them and simply work out learn how to put the precise techniques in there and in addition simply be somewhat little bit of a deal junkie.

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

Dave Meyers:
That could be a vital distinction. Effectively, all the hearth emails is an effective 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 bought 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 at all times thought the good factor on this planet can 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 once I bought the e-mail from Caitlin saying that I used to be on and I’ve that ugly face cry, that pleased face. However you’re like, “Ugh,” that my daughter took an image of. I’ll ship it to you.

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

Kathy Fettke:
Yeah, all sweaty from snowboarding and oh my God. So she’s like, “What’s unsuitable, 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 12 months. We sit down, we write down a very powerful issues we wish to accomplish past what our regular work is. I imply all of us have issues that we’re doing and dealing by way of, however what can we wish to do past that? Pushing ourselves. So I had three, and once more that’s Wealthy’s factor is I hold the massive 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 learn how to do it. I believe I used to be scared as a result of I haven’t finished it earlier than. So I simply did one and I believe it was actually enjoyable and went effectively. In order that’ll be subsequent 12 months as a result of I simply actually imagine in girls serving to girls develop into 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’d like you to do it in 2023.

Kathy Fettke:
Oh, thanks. Thanks. I actually admire that. I’m going to do it. Okay. Then my second one was to complete my revision of my guide. I wrote “Retire Wealthy with Leases” in 2014. It was so outdated. Then, once I bought on this present, I’m like, “Oh, no. Persons are going to learn that guide and so they’re going to be like, none of this is sensible. None of it’s doable in the present day.” However this had been a aim. Do you guys ever have a aim and it’s on there each single 12 months? The identical freaking aim.

Dave Meyers:
In fact.

Kathy Fettke:
Sure. So 2018, 2019, 2020. I imply each single 12 months. 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 might document it, non-refundable, and he is aware of that I didn’t wish to lose 1000’s of {dollars}, set the date and he’s like, “That is the date you’re displaying up whether or not it’s finished or not.” So I did, I revised that guide. It re-recorded, it’s up to date to 2022. So I did that. Actually, actually pleased.

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 said they had been going to boost charges seven occasions this 12 months and which means a large 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. Hundreds of thousands and thousands and thousands of {dollars}. How about 20 million simply prepared to accumulate? We did it.
I discovered my excellent accomplice. 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 bought this one finished and I bought the precise accomplice 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 mainly doing her deal, which is shopping for older houses however not too outdated. 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 persons are transferring from California to Dallas and so they’re going to count on California requirements. So we’re actually making these locations good. All of the fairness goes into the fund, all of the upside and we simply share it. 75, 25 with the traders, so.

Dave Meyers:
That’s superior.

Kathy Fettke:
We did it. I’m tremendous excited and we’re making the most of this time when so many individuals are afraid and so they shouldn’t be, however they’re. As a result of folks imagine headlines which we’re gross sales volumes, I’m simply going to say this actually fast, however gross sales volumes in the present day are usually not that totally different than pre-pandemic. Persons are nonetheless shopping for and promoting houses, however you’ll be able to’t examine 12 months over 12 months information. You may’t examine now with loopy, proper? You’ve bought to return to pre-pandemic. So headlines know learn how to freak folks out. They’re evaluating now from final 12 months, which was an unprecedented 12 months. Don’t do it. Don’t have a look at headlines that examine now with then. So anyway, I’m thrilled perhaps that different persons are studying these headlines as a result of we’re entering into and there’s simply not competitors when you’ll be able to are available 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 admire you saying that, Kathy. But in addition admire all of you and Jamil, wherever he could also be making ready for his TV present launch that you just all helped me make considered 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 12 months?

James Dainard:
Effectively, no. Crucial one is to get somewhat bit extra. So that they’re form of counter, I bought to determine the magic sauce on this as a result of I’m additionally attempting to get somewhat bit out of my operational aspect of the enterprise on the gross sales aspect. So I wish to step out extra however then proceed to develop. The explanation I wish to do this extra is, I’m attempting to get out of the service aspect as a lot and get the precise employees and we have now a terrific crew, increase the crew 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 number of palms on arduous work and getting within the weeds, getting issues finished, fixing issues. As I’m getting older and doing extra offers and getting extra capital, I wish to be extra passive.
So which means I actually wish 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 folks that may take over as operators within the client and repair aspect. Then I can focus extra on the funding technique aspect, like constructing the precise groups to continue to grow. As a result of I do assume there’s going to be a considerable quantity of alternative for the subsequent 12 months. If in case you have the precise groups collectively, you’ll be able to actually let your cash work and develop. So I assume the largest one is see my children 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 not get there.
What I noticed is it’s as a result of I keep on 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 gained’t promote any kind of funding that I haven’t at the moment finished so as a result of we wish to know learn how to package deal it, look it and assist folks work by way of that funding deal. We simply don’t … For instance, on warehouse leasing house, I’ve by no means finished that earlier than. We don’t promote that. It’s simply we wish to guarantee that we’re actually serving to our purchasers by way of. However that’s at all times primarily based 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 really … 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 steady. 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:
Positively on the gross sales aspect, that’s for certain. There’s a number 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 knowledgeable brokers or new brokers, it A, introduced lots of people into the enterprise that perhaps actually weren’t actual property folks. They had been simply attempting to earn a living. The second factor is, what it did is folks gotten actually lazy on their every day behavior. It began turning into too straightforward. In case you’re a dealer, you didn’t have to fret concerning the advertising and marketing plan, you needed to simply throw an indication within the yard and work out learn how to feed the provides and work that deal as greatest as doable. That isn’t promoting. That’s feeding provides and that’s negotiating at that time.
So a number of easy habits that you just want so far as an investor, a dealer, a lender, these guidelines bought damaged, whether or not it was underwriting, the way you had been doing them, what you had 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 aspect, we’ve positively seen a … It’s getting simpler throughout the board property managers, we’ve been in a position to employees up somewhat bit extra internally for our syndication properties in our inner leases. Superintendents are positively beginning to float round much more, development employees as a result of a number of massive builders laid off. Lots of people are stopped shopping for their forecasting to not be transferring as a lot. So sure, the hiring is getting somewhat bit simpler. Not in all sectors.
I believe my normal advertising and marketing, accounting, these issues, these are nonetheless arduous to rent for. However our actual property trades the specialists. It positively is. So what we wish to do is take this and what I’ve discovered 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 are able to promote to be tangible and to continue to grow. There’s solely a lot alternative on the market. You bought to supply sufficient off market, on market. So what we’re actually doing is we’re doubling and tripling down on segments that we simply began that we do some enterprise in. As brokers, we supply a number 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 business.
We’re simply attempting to increase it reasonably than simply create extra repair and flip and bur alternatives. We wish to create the alternatives in all these totally different segments, which looks as if a no brainer to be doing that as you’re rising your corporation. However while you’re doing this many offers, you get caught within the weeds and also you simply wish to get offers finished and it’s going effectively. So now we’re attempting to develop the segments and perhaps a part of my enterprise shrink somewhat 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 wish to cease rising, however how do I wish to develop and if I wish to develop as an investor, then I want to surrender a few of these different issues that create excellent earnings. That’s okay as a result of the larger image is I could be a lot more practical 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, you must hold them narrowed in. Then we’re additionally attempting to choose up a thousand extra doorways this 12 months. I believe we are able to hit that.

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

James Dainard:
I believe there’s going to be a lot alternative. I believe we are able to do this. We’re going to be doing that by way of 10, 31 alternate 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 folks not shopping for larger offers, the offers are there, however we have to employees up accordingly to maintain these models. So we’re hiring proper now, like we’re shopping for a thousand doorways. I believe we are able to get in that.
We’re very enthusiastic about that as a result of it’s arduous to accumulate 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 arduous. 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 earnings and I’m not there but. So I’ve to create extra earnings, 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 wish 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 understand you won’t hit them every year? 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 believe that’s an excellent query. I set my targets larger and I believe it relies on who you’re as an individual. Some folks like that gratification of, “Hey, I bought this finished, verify it off a listing.” I imply, to be sincere, if I’ve a listing and I bought to cross issues off, it is rather gratifying. Like, “That is finished, that is finished.” There’s one thing about that that’s … Okay, even when it’s, “Hey, I picked up my groceries finished,” however I’m an individual that I like failure makes me work tougher. Success generally makes me somewhat … It takes it off the fuel, I don’t know what it’s.
In order that’s not for everyone, it’s simply how I do it. Possibly it’s not the healthiest behavior, however I prefer to make it to the place I’m at all times attempting to push myself to that code purple. Normally which means hit attempting to get to a aim that I couldn’t hit or that I assumed it will be an extended shot. I’d reasonably have an extended shot aim than a straightforward one. I don’t have to 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 tougher, smarter and do it in a different way/ it’s one of the simplest ways for me to do it, nevertheless 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 approach an excessive amount of caffeine nervousness and it turns into a complete basket case and also you simply get issues finished.

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

James Dainard:
That’s considered one of my greatest targets for 2023. Give up consuming Rockstar. It’s a giant one.

Henry Washington:
Effectively, there goes our Rockstar sponsorship.

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

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

Dave Meyers:
Effectively, James, I completely relate, however let’s go to Kathy. I really feel like she most likely has a more healthy thought of learn how 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 youngsters develop up and also you begin to see issues sag while 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 wish to spend time with my grandson who by the best way simply bought a police automobile that the little ones guys might drive. So now each evening, he patrols the neighborhood along with his police automobile.

Dave Meyers:
Yeah. That’s cute. I wished a type of so dangerous 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 bought alarms and sirens. I’m certain the neighbors love us.

James Dainard:
Yeah. What occurred? That was normally for the actually cool children. Now I see them in all places 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 had been the good child on the playground for certain. Effectively, what had been we speaking about? Oh, targets, Kathy, you stated three targets, proper? That’s what you set. So do you’ve gotten your three targets for subsequent 12 months but?

Kathy Fettke:
We normally sit down on New Yr’s Day and do it collectively as a household after which the subsequent week we do it with our firm. But when I had been to guess what it will likely be, I’ve already stated it. I’m going to have and launch probably the most superior girls’s mastermind. Can’t wait. That might be absolutely flushed out by I believe earlier than January. So perhaps that’s nonetheless a, this 12 months aim. Possibly you’ll really hit the aim this 12 months. 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 bought 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 really went to Europe along with her this summer time and he or she got here with me to Portugal to take a look at the Golden Visa program and this system we had been setting as much as assist Individuals and different individuals who had been searching for a citizenship. Krista was with me in Portugal, fell in love with Portugal, fell in love with the concept of the Golden Visa program. She wished to do it. So now she’s working for Gateway Portugal which is a pal of mine who began that firm and it’s been a lot enjoyable serving to her launch that. In order that’s considered one 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 everyone, however a number of occasions you need your children 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 wish to do it with you and never too younger. They should go discover out what different jobs are like and what different bosses are like after which notice you’re one of the best and so they should 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 folks in-

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

Kathy Fettke:
What else? Clearly, the fund maintaining that rising after which the massive one is working by way of among the initiatives that I began years in the past which have been 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 really bought out two of our subdivisions early this 12 months, so the timing was nice, however we’ve bought three extra. So simply giving all of it every part. I’ve bought creativity, advertising and marketing, working, like I stated with our high-end luxurious houses. We’re working with the shared trip mannequin with Ember Houses, which is like Picasso. And that’s only a phenomenal mannequin the place folks can have these trip houses and never should pay for the entire house as a result of who makes use of their trip house on a regular basis? Folks don’t.
It’s a waste of house. It’s a waste of land for folks to have these trip houses they don’t use. I imply the place I reside in Malibu, it’s 50% occupied as a result of all these wealthy folks personal houses which can be empty and that’s not nice. So it is a option to share that in order that there’s shared possession in these trip houses. You get your days. So issues like that. Actually discovering alternate options to the initiatives I’m already in to do one of the best I can for my traders. Now what Wealthy would say is make it sensible. Actually bought 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, for those who don’t know what Kathy’s speaking about, about SMART targets, it is a actually widespread 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 completed, who’s accountable for it, what steps should be taken to attain it. M is for measurable. I believe that is tremendous vital.
Clearly, I’m an information nerd, however quantifying your targets makes it simpler to trace your progress. You’ve to have the ability to hold 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 must be the A. R is related in order that it’s really vital to you and that it’s vital to your massive image. T is time-bound, which I believe is de facto vital too. It’s a must to give your self a deadline. So for those who’re keen on aim setting and need a framework, SMART targets is a extremely, actually great way to try this.

Kathy Fettke:
Dave, that’s why I didn’t accomplish the mastermind one. I used to be like, “Yeah, I wish 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 seem 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 number of the work it is advisable accomplish your aim. In case you can work out what particularly you need it to be and what the metric of success is and while you’re going to do it by, that’s a number of the work for lots of those targets. So it forces you to take among the ambiguity out of it after which you’ll be able to 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 really with what’s your philosophy on aim setting?

Henry Washington:
So yeah, my targets for 2023, I prefer to hold them easy. So I form of simply carry over the identical targets after which both alter them primarily based on what occurred within the earlier 12 months and the way that made me really feel or and the way that made us really feel about the place we wish to go the subsequent 12 months. 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 12 months 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 12 months 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 12 months I wish to rent … We’re going to usher in any person to do acquisitions. I wish 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 youngsters extra. However for me, what’s vital about targets is A, that you’ve got them. Proper? So it is advisable write your targets down. I believe there’s one thing highly effective about really writing them, like placing pen to paper. You may kind them and that’s cool. However once I write my targets down, I don’t know. It feels extra actual. It feels extra like one thing that I’m going to look to attain. So among the hacks that I do with my targets just isn’t solely do I write them down, however I write them a number of occasions a day. So day-after-day once 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 while 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 day-after-day is de facto simply me ensuring that my targets are staying on the forefront of my mind in order that as I’m really doing issues all through the day, I’ve my targets in thoughts as a result of I put them on the entrance of my mind each single morning. So it helps me work in the direction of these issues. It helps me once I’m time blocking, I’m ensuring that I’m blocking time and dealing on issues which can be related to these targets. One other factor that I do is I put my targets in image kind after which I’ll save them as a imaginative and prescient board on the house display screen in my cellphone, simply in order that … I bought 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 really getting us nearer to our targets. Then I get overwhelmed. And so once I get overwhelmed, it’s very straightforward for me to simply look and see, “Okay, if what I’m doing proper now isn’t transferring me nearer to considered one of these targets on my cellphone, then I have to 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.” Similar to James stated, you get up and also you’ve bought the fires in your inbox and it’s straightforward to simply concentrate on these fires. However generally 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 fireplace that any person else thinks is a fireplace that I’ve to deal with when it’s actually simply one thing I have to push again on them to maintain. It’s not that massive 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 the direction of these targets. Then I additionally like to jot down my targets down after which I stick them in all places. So in my workplace you’ll be able to’t see it. However on the wall right here, on the aspect, on the sticky observe, I’ve bought targets written down time and again. On my workplace at house, 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 observe within the bathe in order that once I’m showering I see my targets.

Kathy Fettke:
Wow.

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

Henry Washington:
Sure, I wallpaper my home with my targets in order that I see them in all places as a result of I simply wish to make it that a lot simpler for me to remain targeted on the duties that I’m doing ought to really be transferring me in the direction of these targets or else it’s most likely not as vital as I believe it’s as a result of we are going to 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 vital. 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 may push you in the direction of these targets, but in addition subconsciously, you’re going to start out doing issues which can be going to push you towards these targets as effectively.

Dave Meyers:
Man, my lock display screen on my cellphone is only a image of a fried rooster 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 hold inside my bathe are power drinks. So how does sticky observe work?

Henry Washington:
I neglect 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 bought two or three of these little notepads in my bathe.

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

Dave Meyers:
Effectively, for those who’re attempting to give up, James, you bought to modify out the Rockstar’s for Henry’s now.

James Dainard:
I do know.

Henry Washington:
Dude, my spouse has a type 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. Effectively, these feels like some bold nice targets. Is there every other ideas any of you’ve gotten or ideas on aim setting that you just wish 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 primarily based on EOS.

Dave Meyers:
Oh, yeah. Yeah.

Kathy Fettke:
Yeah. Conferences are simply such a waste of time more often than not. You’ve bought the loud mouths who provide you with concepts and so they simply derail the assembly. Lots of people hate conferences. So with Ninety.io, you mainly have your headlines. Everyone simply will get a couple of seconds to say one thing that everyone within the firm must know. You then evaluation your to-dos, that was imagined to be finished final week. So everyone is held accountable as a result of it’s on the software program and doesn’t get shot, checked off until it’s finished and also you’ve introduced it and then you definitely go into this part that’s all of the concepts, all of the issues that may be finished to enhance or the problems, mainly the issues that should be mentioned and so they all get put in right here. Then as a gaggle, 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 already know 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. In case you actually wish 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 in the beginning of the 12 months and breaks it out into quarterly steps. What’s the primary chew of this elephant? What’s the very first thing we have to do? You then 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 in the beginning of the 12 months as a result of everyone on Instagram, everyone on YouTube is all speaking about targets, plan your targets, set your targets, new Yr’s resolutions, there’s all this stuff which can be telling us let’s prepare for the brand new 12 months. So we get targeted for a couple 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 while 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’ll be able to primarily simply break your targets out into the what’s the aim, who do it is advisable get it finished, 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 persons are best within the morning after which they path off. So that they reap the benefits of the mornings and so they attempt to be as productive as doable in order that in the event that they path off, they nonetheless get a number of issues finished. You are able to do the identical factor together with your targets and attempt to be the best on reaching your targets within the first 90 days. Then, for those who path off, you’ve bought 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 finished, you’ll be capable of accomplish far more of these duties since you’re feeling like that’s what try to be doing earlier than life smacks you within the face after which it is advisable throw your targets out the window anyway.

Dave Meyers:
That’s a terrific 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 tips, I really like these targets. I actually admire that each one of you mainly stated along with monetary targets have life-style targets too. I imply, most of us make investments for causes which can be simply past simply making some huge cash, but in addition in a position to do issues which can be fulfilling to you as effectively that you just really feel are vital and significant. That’s crucial for aim setting as effectively. I’ve one final aim setting query for you guys. In case you might 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 guarantee that David Inexperienced wakes up very unhappy after we take over the primary spot. Nothing in opposition to David Inexperienced, however generally you simply bought to do one thing to any person cereal and take over that primary spot.

Dave Meyers:
We bought an extended option 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 record?

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 neglect what I used to be doing, however I used to be like performing some analysis. I Googled prime actual property podcasts a couple of months in the past, effectively into available on the market, 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 known as her out somewhat bit, was asking why, what we have now to do to make her prime podcast record for subsequent 12 months.

Kathy Fettke:
So the funniest factor is I didn’t even know that record existed in one of the best half was that in some way my present isn’t primary. I’m like, “That sounds form of self-serving.” Anyway, we will need to have a terrific search engine optimization individual because-

Dave Meyers:
Completely. Excellent.

James Dainard:
I additionally discovered that record too. So that you do have an search engine optimization, good search engine optimization 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 12 months. We needed to show ourselves that after … What are we at? 50 one thing episodes at this level that had been worthwhile. All proper. Effectively, my aim subsequent 12 months is to get at the least within the prime 5 for investing exhibits. I believe we are able to positively do this. Hopefully make two Dave’s cry. Let’s get David Inexperienced unhappy and Dave Ramsey unhappy in the future. If we might dethrone these two, we’ll know that we’ve 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 in the future.

Henry Washington:
I imply, let’s not low cost the truth that we hit a aim of 1,000,000 downloads already.

Dave Meyers:
Yeah, we did. That’s unimaginable. Over 1,000,000 downloads in six months, which is ridiculous.

Henry Washington:
Yeah.

Dave Meyers:
Effectively, we admire all of you for all your assist for giving us these good critiques, for sharing it with your folks. I don’t know for those who guys have seen this, however I believe yesterday we’re recording this in early December, the Spotify 12 months 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 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 had been in prime of the BiggerPockets charts and above Dave Ramsey on a pair folks’s particular person lists at the least.
So we admire you all. Thanks for supporting the present. Hopefully subsequent 12 months is one other 12 months of nice development for this present. Kathy, James, and Henry, thanks a lot for sharing your targets and your philosophy on setting targets. Actually admire the within look into the way you all take into consideration what you wish to accomplish and the way you really go about undertaking 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:
Effectively, most likely the best is on Instagram @Kathy Fettki or at realwealth.com.

Dave Meyers:
All proper, James?

James Dainard:
Yow will discover us on Instagram at jaydaneflips or take a look at jamesdainard.com for only a bunch of free movies. Me strolling by way of nasty Homes.

Dave Meyers:
Henry, what about you?

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

Dave Meyers:
All proper, nice. Yow 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 undertaking 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 a giant due to the complete BiggerPockets crew.
Effectively, content material on the present available on the market are opinions solely. All listeners ought to independently confirm information factors, opinions, and funding methods.