Find out how to Construct Greater and Setting SMARTer 2023 Targets

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

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

Dave Meyers:
Likewise. We even have James Dainard.

James Dainard:
What’s happening guys?

Dave Meyers:
Kathy Fettke reside from Dallas proper now.

Kathy Fettke:
Hiya. some properties. Tremendous excited.

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

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

Dave Meyers:
Yeah.

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

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

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

Henry Washington:
Yeah, man.

Dave Meyers:
Fairly good.

Henry Washington:
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 objectives. So my objectives fairly excessive degree the place I wished 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 for those who take a look at the closings, we now have 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 objective was 15.

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

Henry Washington:
Yeah. So what occurred was by February I had 20 below contract and a few of these ended up falling by means of and we didn’t get them. So we hit a number of of them early after which we obtained an enormous chunk as a result of we purchased a industrial workplace advanced and that wasn’t on the plan for this 12 months, however that had 11 items in it. Then we’re closing the 12 months with closing on a 15 unit trailer park.

Dave Meyers:
Oh, good. Nicely, I assume initially, once we get to the a part of the present, we’re going to speak about 2023 objectives. We have now to carry you accountable for a stretch objective. For those who tripled your objective 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 objectives as a result of I usually have a door objective or a rental property objective after which I’ve a disposition’s objective for my flips, proper? As a result of we flip those we don’t need after which we preserve the remaining. So my flip objective was to do about 15 flips and attempt to hit about 1.2 million and we had been nicely below that. So so far as the quantity, we did 18 however we solely obtained to about 761,000 on that objective. So numerous 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 objective. We purchased means much less leases however we did far more flips and far more revenue.
We did over 1.2 million in 2021 and we weren’t planning on it. So the market was simply telling us in 2021, you’re going to make massive earnings, promote every little thing you may that is sensible to, after which redeploy these property into issues that you just’re going to carry long run. Then 2022 was slightly little bit of the alternative. So we undoubtedly, undoubtedly missed the objective on flips, however that’s okay as a result of we nicely exceeded our objective on holds and I obtained into this enterprise for ahold. So if I’m going to overshoot one and miss the opposite one, I would like it to be this fashion. I wish to seize extra doorways that I’m going to maintain endlessly.

Dave Meyers:
Oh, congrats man, that’s superior. I imply nice to listen to that you just obtained nicely and above your objective. James, what about you? What had been your objectives 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 objectives that I actually attempting to get to. The primary one was, I used to be attempting to do $200 million in gross sales as a dealer direct to buyers. That’s been a objective 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 obtained another month in there, however we’ll most likely 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 12 months. Different objectives that I had was we wished to amass about 4 to 500 extra doorways for our portfolio.
We’re going to do that extra by means of syndicating, not by means of … Nicely, I type of do that two other ways. Me and my enterprise accomplice, we do bigger offers collectively after which we do purchase numerous improvement property and we personal it collectively. So we now have our personal set of doorways that are roughly round 1500 doorways in there. So we 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 objective principally it’s as a result of the offers simply weren’t there. It was higher to skip our objective and simply transfer on and begin refocusing. As a result of if it’s simply not there, you may’t power it in. I do suppose that we’re going to have the ability to hit that quantity subsequent 12 months 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 12 months from there.
So different objectives that we had for 2022 is we wished to lock all of our portfolio charges in. So we spent numerous time in that final quarter of 2021 and 2022 forecasting our entire portfolio out. As a result of numerous instances once we’re shopping for these condominium 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 circulation however then additionally stagger out all of our balloon funds as a result of we wished to ensure 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 numerous time … We knew 2021 was this loopy progress 12 months. So at first of 2022, we simply saved with the gross sales however we actually wished to simply take a look at every little thing internally, audit it, stabilize every little thing out. So we had been very pleased with hitting that objective.
We don’t have one mortgage coming due for at the least 4 years and so we don’t have to fret about some type of fee soar or something like that. In order that was an enormous objective for us to hit. Then one different factor that we had been undoubtedly had been pleased with that we hit, we had a objective to do about $20 million in short-term tendencies, which goes to be repair and flip in improvement websites. We ended up doing about 30 mil in tendencies.
A part of that was most likely 15% progress in values, however we ended up internally by means of my enterprise accomplice, we did about 30 mil in tendencies, which I’m actually glad we racked numerous these within the first two quarters of the 12 months as a result of I believe it could’ve been so much much less if we might’ve hit into that third quarter. So we undoubtedly really, on the brief time period within the gross sales aspect, we kick very near our objectives if not excelled. We didn’t choose up numerous rental doorways or as a lot as we wished simply because the offers weren’t there. So I’m undoubtedly going to be doubling down on 2023 as we’re seeing higher deal circulation to amass an increasing number of doorways.

Dave Meyers:
Nicely, initially, congrats James. It appears like an superior 12 months general, however it’s attention-grabbing 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 objectives first. As a result of once I’m speaking a couple of objective of hitting 1.2 million and doing 15 flips, James is like, “I wish to do 1.2 million on one deal.”

Kathy Fettke:
Targets.

Henry Washington:
We’re attempting to get 200 million. I’m like, “That’s cool.” I simply wish to make 1,000,000 off of my 10 offers.

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

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

Dave Meyers:
Fell brief at 160.

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

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

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

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

Henry Washington:
Simply purchase stuff that works …

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

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

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

Dave Meyers:
Which was what?

Kathy Fettke:
I simply at all times thought the best factor on the earth could be to be a co-host on BiggerPockets with Dave Myers. What? What? I imply that was only a dream, not even a objective. Right here I’m. So I’m critical. That’s superb. I used to be snowboarding once I obtained 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 obtained to put up that one.

Kathy Fettke:
Yeah, all sweaty from snowboarding and oh my God. So she’s like, “What’s improper, mother?” Anyway, yeah. In order that’s a objective. That was a secret objective. I’m so grateful. On my precise written objectives, 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 an important 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 means 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 preserve the massive ones to a few as a result of the mind can’t deal with greater than that.
My massive one was beginning a ladies’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 executed it earlier than. So I simply did one and I believe it was actually enjoyable and went nicely. In order that’ll be subsequent 12 months as a result of I simply actually consider in ladies serving to ladies develop into higher leaders. We nonetheless have work to do. We nonetheless have work to do there. Nonetheless not a feminine president.

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

Kathy Fettke:
Oh, thanks. Thanks. I actually recognize that. I’m going to do it. Okay. Then my second one was to complete my revision of my e-book. I wrote “Retire Wealthy with Leases” in 2014. It was so outdated. Then, once I obtained 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 potential right now.” However this had been a objective. Do you guys ever have a objective and it’s on there each single 12 months? The identical freaking objective.

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 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’d report it, non-refundable, and he is aware of that I didn’t wish to lose hundreds of {dollars}, set the date and he’s like, “That is the date you’re displaying up whether or not it’s executed 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 objectives. The third one was I knew in January that the market was going to shift. I knew that, nicely clearly the Fed had acknowledged they had been going to lift charges seven instances this 12 months and meaning an enormous and sudden slowdown to the financial system. So I knew that was coming and I wished to be ready. So I wished to have a fund as a result of I wished to have an enormous bundle of money. Thousands and thousands and tens of millions of {dollars}. How about 20 million simply prepared to amass? We did it.
I discovered my excellent accomplice. I’m right here in Dallas proper now, able to go meet together with her. We’re going to go take a look at the acquisitions that we’re about to go after. I’m tremendous proud as a result of I obtained this one executed and I obtained the precise accomplice and he or she’s each a property supervisor right here in Dallas. I’ve been working together with her for 10 years. I do know her very nicely 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 type 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 they usually’re going to anticipate California requirements. So we’re actually making these locations good. All of the fairness goes into the fund, all of the upside and we simply share it. 75, 25 with the buyers, so.

Dave Meyers:
That’s superior.

Kathy Fettke:
We did it. I’m tremendous excited and we’re benefiting from this time when so many individuals are afraid they usually shouldn’t be, however they’re. As a result of individuals consider headlines which we’re taking a look at gross sales volumes, I’m simply going to say this actually fast, however gross sales volumes right now aren’t that totally different than pre-pandemic. Persons are nonetheless shopping for and promoting houses, however you may’t examine 12 months over 12 months knowledge. You’ll be able to’t examine now with loopy, proper? You’ve obtained to return to pre-pandemic. So headlines know easy methods to freak individuals out. They’re evaluating now from final 12 months, which was an unprecedented 12 months. Don’t do it. Don’t take a look at headlines that examine now with then. So anyway, I’m thrilled possibly that different persons are studying these headlines as a result of we’re entering into and there’s simply not competitors when you may are available in with money, it’s improbable.

Dave Meyers:
Superior. Nicely, congratulations to all of you as a result of my actual property objectives are lame in comparison with all of yours. I used to be going to say that my objective was launching this podcast with all of you, which is true and actually recognize you saying that, Kathy. But in addition recognize all of you and Jamil, wherever he could also be making ready for his TV present launch that you just all helped me make considered one of my annual and lifelong objectives 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 speak about our objectives for 2023.
All proper. Time for 2023 objectives. James, you talked an enormous recreation about your plan to hit 200 million in gross sales. So let’s hear about this objective and your plan of assault for 2023. I assume is that this an important objective you’re going after subsequent 12 months?

James Dainard:
Nicely, no. An important one is to get slightly bit extra. In order that they’re type of counter, I obtained to determine the magic sauce on this as a result of I’m additionally attempting to get slightly 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 rationale 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 now have an awesome group, broaden the group after which be extra within the investor. As my profession as an investor during the last 18 years, it’s at all times been numerous fingers on onerous work and getting within the weeds, getting issues executed, fixing issues. As I’m getting older and doing extra offers and getting extra capital, I wish to be extra passive.
So meaning I actually wish to deal with the long run funding objectives, not simply racking these checks in. So that’s the final objective, is to rent up, usher in some extra companions inside our companies, groom some individuals 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 suppose there’s going to be a considerable quantity of alternative for the following 12 months. If in case you have the precise groups collectively, you may actually let your cash work and develop. So I assume the most important one is see my youngsters and spouse extra and work much less, however nonetheless develop the companies and deal with the larger image. That $200 million in gross sales, I’ve been chasing this for 3 years now and I can’t get there.
What I noticed is it’s as a result of I keep on with what I do know so nicely and what we’re actually good at for us as a dealer and a brokerage, we solely promote what we all know very, very nicely. I received’t promote any kind of funding that I haven’t presently executed so as a result of we wish to know easy methods to package deal it, look it and assist individuals work by means of that funding deal. We simply don’t … For instance, on warehouse leasing house, I’ve by no means executed that earlier than. We don’t promote that. It’s simply we wish to ensure that we’re actually serving to our shoppers by means of. However that’s at all times primarily based on my expertise, that doesn’t imply I can’t carry in additional individuals to assist enhance the shopper’s expertise. So I’m going to be really … To get to this objective of 200 million, we’re we’re going to double our gross sales group, which lots of people are shrinking their gross sales group 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 instances 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 numerous misplaced brokers on the market. The markets, it wasn’t an actual marketplace for the final two to a few years. It was this artificially inflated market that was on hearth. What that did is even for knowledgeable brokers or new brokers, it A, introduced lots of people into the enterprise that possibly actually weren’t actual property individuals. They had been simply attempting to generate profits. The second factor is, what it did is individuals gotten actually lazy on their each day behavior. It began changing into too straightforward. For those who’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 easy methods to feed the gives and work that deal as greatest as potential. That’s not promoting. That’s feeding gives and that’s negotiating at that time.
So numerous easy habits that you just want so far as an investor, a dealer, a lender, these guidelines obtained 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 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 in a position to employees up slightly bit extra internally for our syndication properties in our inside leases. Superintendents are undoubtedly beginning to float round much more, building staff as a result of numerous 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 slightly bit simpler. Not in all sectors.
I believe my common advertising and marketing, accounting, these issues, these are nonetheless onerous to rent for. However our actual property trades the specialists. It undoubtedly 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 improvement 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 numerous grime 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 broaden it moderately than simply create extra repair and flip and bur alternatives. We wish to create the alternatives in all these totally different segments, which looks like a no brainer to be doing that as you’re rising your small business. However while you’re doing this many offers, you get caught within the weeds and also you simply wish to get offers executed and it’s going nicely. So now we’re attempting to develop the segments and possibly a part of my enterprise shrink slightly bit simply to deal with the expansion of those. That’s what I needed to get to. I’m okay doing that.
I believe that was the most important 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 would like to surrender a few of these different issues that create superb earnings. That’s okay as a result of the larger image is I could be a lot more practical in our giant improvement 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 preserve them narrowed in. Then we’re additionally attempting to select up a thousand extra doorways this 12 months. 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 do this. We’re going to be doing that by means of 10, 31 alternate group. 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 truthfully, with individuals not shopping for greater offers, the offers are there, however we have to employees up accordingly to maintain these items. So we’re hiring proper now, like we’re shopping for a thousand doorways. I 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 objectives, however you bought to have your objectives massive. Your objectives aren’t massive, you don’t grind as onerous. So it retains me on the hamster wheel, however I’ve a sure objective to get to. I need a sure sum of money each month from passive earnings and I’m not there but. So I’ve to create extra earnings, I’ve to avoid wasting my cash, stick it away, and simply let that continue to grow so I can get to that magical quantity that I’ve been chasing.

Dave Meyers:
Nicely, so James, I wish to ask you earlier than we transfer on, such as you stated, so your philosophy about objective setting is to set massive objectives. Does that imply, you understand you won’t hit them annually? Or what’s your strategy to how attainable you suppose your objectives must be and what number of of them you set?

James Dainard:
I believe that’s query. I set my objectives greater and I believe it will depend on who you’re as an individual. Some individuals like that gratification of, “Hey, I obtained this executed, verify it off a listing.” I imply, to be trustworthy, if I’ve a listing and I obtained to cross issues off, it is vitally gratifying. Like, “That is executed, that is executed.” There’s one thing about that that’s … Okay, even when it’s, “Hey, I picked up my groceries executed,” however I’m an individual that I like failure makes me work tougher. Success typically makes me slightly … 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 crimson. Normally meaning hit attempting to get to a objective that I couldn’t hit or that I believed it could be an extended shot. I’d moderately have an extended shot objective than a simple one. I don’t have to knock that. The larger image is what I’m chasing and if I don’t hit my objective, I get nervousness and it makes me work tougher, smarter and do it in a different way/ it’s the easiest way for me to do it, however it’s not for everyone.

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

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

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

James Dainard:
That’s considered one of my largest objectives for 2023. Stop consuming Rockstar. It’s an enormous one.

Henry Washington:
Nicely, there goes our Rockstar sponsorship.

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

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

Dave Meyers:
Nicely, James, I completely relate, however let’s go to Kathy. I really feel like she most likely has a more healthy concept of easy methods to set objectives.

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 means of calming you down as you become older, possibly. 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 possibly it’s time to loosen up. 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 way in which simply obtained a police automobile that the little ones guys might drive. So now each night time, he patrols the neighborhood along with his police automobile.

Dave Meyers:
Yeah. That’s cute. I wished a type of so unhealthy once I was a child. What are they referred to as? Energy wheels?

Henry Washington:
Energy wheels.

Dave Meyers:
Energy wheels, proper? Yeah.

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

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

Dave Meyers:
Yeah.

James Dainard:
For those who 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 best child on the playground for certain. Nicely, what had been we speaking about? Oh, objectives, Kathy, you stated three objectives, proper? That’s what you set. So do you’ve gotten your three objectives for subsequent 12 months but?

Kathy Fettke:
We often sit down on New Yr’s Day and do it collectively as a household after which the following week we do it with our firm. But when I 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 ladies’s mastermind. Can’t wait. That might be absolutely flushed out by I believe earlier than January. So possibly that’s nonetheless a, this 12 months objective. Possibly you’ll really hit the objective 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 obtained two daughters and the youngest one’s 23 and a dream has been to work together with her, work with each daughters. So the 23-year-old got here to … I really went to Europe together with her this summer season 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 in search of a citizenship. Krista was with me in Portugal, fell in love with Portugal, fell in love with the thought of the Golden Visa program. She wished to do it. So now she’s working for Gateway Portugal which is a buddy of mine who began that firm and it’s been a lot enjoyable serving to her launch that. In order that’s considered one of my objectives is to assist my daughter. I’m a component proprietor on this enterprise now and assist her launch this factor. So I’d say for 2023, actually residing that dream of being in partnership with my daughter on one thing she’s tremendous enthusiastic about.

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

Kathy Fettke:
So enjoyable. So enjoyable to see her. Everyone … Not everyone, however numerous instances you need your youngsters to work and your small business with you, however they want to decide on that. By no means power 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 understand you’re one of the best they usually must 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 conserving that rising after which the massive one is working by means of a few of the initiatives that I began years in the past which were difficult. We have now floor up improvement initiatives, so this can be a powerful time for builders. So my objective is after all to do as greatest as I can for our buyers. We really offered out two of our subdivisions early this 12 months, so the timing was nice, however we’ve obtained three extra. So simply giving all of it every little thing. I’ve obtained 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 individuals can have these trip houses and never must 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 individuals 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 individuals personal houses which might be empty and that’s not nice. So this can be a strategy 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 buyers. Now what Wealthy would say is make it sensible. Actually obtained to … What does that imply? What number of? Get it down in writing with numbers and dates and be particular. In order that’ll be what I do on January 1st.

Dave Meyers:
Good. Nicely, for those who don’t know what Kathy’s speaking about, about SMART objectives, this can be a actually in style objective 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 objective to be efficient, it must be a selected objective. Solutions query, what must be completed, who’s chargeable for it, what steps should be taken to realize it. M is for measurable. I believe that is tremendous essential.
Clearly, I’m an information nerd, however quantifying your objectives makes it simpler to trace your progress. You will have to have the ability to preserve rating if you wish to set a objective. A is achievable. So James, I don’t know in case your massive objectives would fall into the SMART objectives, however I prefer it. Achievable, however formidable must be the A. R is related in order that it’s really essential to you and that it’s essential to your massive image. T is time-bound, which I believe is basically essential too. You must give your self a deadline. So for those who’re excited by objective setting and need a framework, SMART objectives 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 might appear like.” So you can say that I achieved it as a result of I did have one, however that’s not what I actually had in thoughts. However what I had in thoughts, I didn’t write down.

Dave Meyers:
Completely. As a result of I assume the method of doing a SMART objective is numerous the work it’s good to accomplish your objective. For those who 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 numerous the work for lots of those objectives. So it forces you to take a few of the ambiguity out of it after which you may deal with execution and fewer on what is that this factor going to be? I assume it simply helps. All proper. Henry, what are your objectives for 2023? I assume let’s simply begin really with what’s your philosophy on objective setting?

Henry Washington:
So yeah, my objectives for 2023, I prefer to preserve them easy. So I type of simply carry over the identical objectives after which both modify 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 following 12 months. So we’re nonetheless trying to purchase 15 doorways, we’re nonetheless going to do about 15 flips. Need to hit that 1.2 million quantity. I do have objectives round hiring individuals 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 herald any individual to do acquisitions. I wish to get a private assistant to assist me with a few of the day-to-day administrative issues that take an excessive amount of of my time.
However all of that’s simply round me not having to spend as a lot time within the enterprise in order that I can hang around with my spouse and children extra. However for me, what’s essential about objectives is A, that you’ve got them. Proper? So it’s good to write your objectives down. I believe there’s one thing highly effective about really writing them, like placing pen to paper. You’ll be able to kind them and that’s cool. However once I write my objectives down, I don’t know. It feels extra actual. It feels extra like one thing that I’m going to look to realize. So a few of the hacks that I do with my objectives just isn’t solely do I write them down, however I write them a number of instances a day. So daily once I get up within the morning, I work out after which I sit down and I write my objectives again and again. I attempt to write them three to 5 instances 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 objectives again and again as a result of for me, it’s a mindset hack and other people 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 daily is basically simply me ensuring that my objectives are staying on the forefront of my mind in order that as I’m really doing issues all through the day, I’ve my objectives in thoughts as a result of I put them on the entrance of my mind each single morning. So it helps me work in direction of these issues. It helps me once I’m time blocking, I’m ensuring that I’m blocking time and dealing on issues which might be related to these objectives. One other factor that I do is I put my objectives in image type after which I’ll save them as a imaginative and prescient board on the house display screen in my cellphone, simply in order that … I obtained 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 objectives. 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 objectives 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 obtained the fires in your inbox and it’s straightforward to simply deal with these fires. However typically what I’ve seen is all these fires aren’t actually fires and all these fires don’t actually take me to do one thing.
Generally it’s a fireplace that any individual 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 care for. 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 direction of these objectives. Then I additionally like to put in writing my objectives down after which I stick them in all places. So in my workplace you may’t see it. However on the wall right here, on the aspect, on the sticky be aware, I’ve obtained objectives written down again and again. On my workplace at house, identical factor hanging from my screens are my objectives. Subsequent to my mattress, I’ve my objectives. I even have my objectives on a sticky be aware within the bathe in order that once I’m showering I see my objectives.

Kathy Fettke:
Wow.

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

Henry Washington:
Sure, I wallpaper my home with my objectives 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 direction of these objectives or else it’s most likely 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 take advantage of to assist me keep targeted on the issues which might be essential. I simply actually consider that there’s energy in repetition, seeing issues again and again since you’re going to consciously, your efforts will push you. Consciously, you’ll do duties that may push you in direction of these objectives, but in addition subconsciously, you’re going to start out doing issues which might be going to push you towards these objectives as nicely.

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 preserve inside my bathe are power drinks. So how does sticky be aware 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 just write with so it’s not like ink.

Dave Meyers:
I prefer it.

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

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

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

James Dainard:
I do know.

Henry Washington:
Dude, my spouse has a type of little beauty fridges that ladies have for his or her cosmetics which might 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, possibly.

Dave Meyers:
Okay.

Henry Washington:
Proper.

Dave Meyers:
All proper. Nicely, these appears like some formidable nice objectives. Is there every other ideas any of you’ve gotten or ideas on objective setting that you just wish 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 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 obtained the loud mouths who provide you with concepts they usually simply derail the assembly. Lots of people hate conferences. So with Ninety.io, you mainly have your headlines. Everyone simply will get just a few seconds to say one thing that everyone within the firm must know. Then you definately assessment your to-dos, that was imagined to be executed 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 executed 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 executed to enhance or the problems, mainly the issues that should be mentioned they usually all get put in right here. Then as a gaggle, you progress to the highest, the problems that all the 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. what I’m saying? There’s at all times 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. For those who 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 must 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 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? Then you definately take that quarterly objective 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 objectives is … So like people, we’re all naturally pumped about our objectives firstly of the 12 months as a result of everyone on Instagram, everyone on YouTube is all speaking about objectives, plan your objectives, set your objectives, new Yr’s resolutions, there’s all this stuff which might be telling us let’s prepare for the brand new 12 months. So we get targeted for just a few months after which life occurs, issues occur, then we decelerate, possibly we get off monitor. Even probably the most disciplined individuals about their objectives 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 objectives, don’t simply plan your objectives, however plan a 90-day plan. So take your objectives and you may Google 90 day plan. There’s tons of templates, however you may basically simply break your objectives out into the what’s the objective, who do it’s good to get it executed, after which what steps are you going to take inside every month within the first 90 days to realize that objective.
It’s type of like some persons are most efficient within the morning after which they path off. In order that they make the most of the mornings they usually attempt to be as productive as potential in order that in the event that they path off, they nonetheless get numerous issues executed. You are able to do the identical factor along with your objectives and attempt to be the best on attaining your objectives within the first 90 days. Then, for those who path off, you’ve obtained an enormous 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 objectives executed, you’ll be capable to accomplish far more of these duties since you’re feeling like that’s what try to be doing earlier than life smacks you within the face after which it’s good to throw your objectives 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:
Nicely, I like all the following tips, I like these objectives. I actually recognize that every one of you mainly stated along with monetary objectives have life-style objectives too. I imply, most of us make investments for causes which might be simply past simply making some huge cash, but in addition in a position to do issues which might be fulfilling to you as nicely that you just really feel are essential and significant. That’s crucial for objective setting as nicely. I’ve one final objective setting query for you guys. For those who might create a objective for the On The Market podcast for 2023, what would that objective be?

James Dainard:
I believe the primary objective is to ensure that David Inexperienced wakes up very unhappy once we take over the primary spot. Nothing in opposition to David Inexperienced, however typically you simply obtained to do one thing to any individual cereal and take over that primary spot.

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

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

Dave Meyers:
Yeah.

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

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

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

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

Dave Meyers:
So for everybody listening, I used to be like, I overlook what I used to be doing, however I used to be like performing some analysis. I Googled high actual property podcasts just a few months in the past, nicely into in the marketplace, and I discovered Article by Actual Wealth Kathy’s firm for high actual property podcasts and On The Market was not on it. So I stated it to Kathy, I referred to as her out slightly bit, was asking why, what we now have to do to make her high podcast listing for subsequent 12 months.

Kathy Fettke:
So the funniest factor is I didn’t even know that listing existed in one of the best half was that by some means my present isn’t primary. I’m like, “That sounds type of self-serving.” Anyway, we will need to have an awesome search engine marketing particular person because-

Dave Meyers:
Completely. Superb.

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

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

Dave Meyers:
All proper. Nicely, now we’ll see extra trustworthy, we didn’t make it the primary 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. Nicely, my objective subsequent 12 months is to get at the least within the high 5 for investing exhibits. I believe we will undoubtedly do this. Hopefully make two Dave’s cry. Let’s get David Inexperienced unhappy and Dave Ramsey unhappy sooner or later. 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. Nicely, three Dave’s on the high sooner or later.

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

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

Henry Washington:
Yeah.

Dave Meyers:
Nicely, we recognize all of you for your entire assist for giving us these good critiques, for sharing it with your pals. 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 stuff you take heed to most on Spotify, and I used to be seeing lots of people put up that On The Market was their high podcast that they listened to in 2022, which was tremendous cool to see. So even when not on the true charts, we had been in high of the BiggerPockets charts and above Dave Ramsey on a pair individuals’s particular person lists at the least.
So we recognize you all. Thanks for supporting the present. Hopefully subsequent 12 months is one other 12 months of nice progress for this present. Kathy, James, and Henry, thanks a lot for sharing your objectives and your philosophy on setting objectives. Actually recognize the within look into the way you all take into consideration what you wish to accomplish and the way you really go about conducting 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:
Nicely, most likely the simplest is on Instagram @Kathy Fettki or at realwealth.com.

Dave Meyers:
All proper, James?

James Dainard:
You’ll find us on Instagram at jaydaneflips or try jamesdainard.com for only a bunch of free movies. Me strolling by means 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. You’ll find me both on BiggerPockets or on Instagram the place I’m on the Information Deli. Thanks all a lot for listening to this episode On The Market. We’d love for those who both go on Instagram or on the BiggerPockets boards, inform us what your objectives are for 2023. We’d love to listen to them and the way you’re going to go about setting and conducting your objectives. Thanks once more. We’ll see you subsequent time.
On The Market is Created by me, Dave Meyer and Caitlin Bennett, produced by Caitlin Bennett, enhancing by Joel Esparza and Onyx Media, researched by Puja Gendal, and an enormous due to all the BiggerPockets group.
Nicely, content material on the present in the marketplace are opinions solely. All listeners ought to independently confirm knowledge factors, opinions, and funding methods.