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 as we speak we’re going to be speaking about 2023 targets. First, we are going to assessment the targets that we now have 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 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 stay from Dallas proper now.

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

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

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

Dave Meyers:
Yeah.

James Dainard:
Glowing why she’s procuring. 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 similar time. Or single households.

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

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

Henry Washington:
Yeah, man.

Dave Meyers:
Fairly good.

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

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

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

Dave Meyers:
Oh, good. Nicely, I suppose to begin with, once we get to the a part of the present, we’re going to speak about 2023 targets. We’ve to carry you accountable for a stretch purpose. If you happen to tripled your purpose for final yr, have you ever set a better one?

Henry Washington:
That’s why I led with how the market is talking to those targets as a result of I sometimes have a door purpose or a rental property purpose after which I’ve a disposition’s purpose for my flips, proper? As a result of we flip those we don’t need after which we maintain the remaining. So my flip purpose was to do about 15 flips and attempt to hit about 1.2 million and we have been effectively below that. So so far as the quantity, we did 18 however we solely received to about 761,000 on that purpose. So plenty of these have been smaller flips, a few of these have been partnerships. So I used to be solely taking 50% of the proceeds there. However in 2021, it was the precise reverse. I didn’t hit my rental door purpose. We purchased method much less leases however we did far more flips and far more revenue.
We did over 1.2 million in 2021 and we weren’t planning on it. So the market was simply telling us in 2021, you’re going to make large earnings, promote all the things you’ll be able to that is sensible to, after which redeploy these property into issues that you simply’re going to carry long run. Then 2022 was somewhat little bit of the other. So we positively, positively missed the purpose on flips, however that’s okay as a result of we effectively exceeded our purpose on holds and I received 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 simply received effectively and above your purpose. James, what about you? What have been your targets in 2022, and the way’d you carry out?

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

Dave Meyers:
Nicely, to begin with, congrats James. It feels like an superior yr total, however it’s fascinating that you simply 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 needed to take a second, and thanks, Dave for permitting me to go over my targets first. As a result of after I’m speaking a couple of purpose 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 now have to go first. I’m going to let James-

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

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

Dave Meyers:
Fell brief at 160.

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

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

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

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

Henry Washington:
Simply purchase stuff that works …

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

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

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

Dave Meyers:
Which was what?

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

Dave Meyers:
Oh, we received to put up that one.

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

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

Kathy Fettke:
Oh, thanks. Thanks. I actually recognize that. I’m going to do it. Okay. Then my second one was to complete my revision of my e book. I wrote “Retire Wealthy with Leases” in 2014. It was so outdated. Then, after I received 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 attainable as we speak.” However this had been a purpose. Do you guys ever have a purpose and it’s on there each single yr? The identical freaking purpose.

Dave Meyers:
After all.

Kathy Fettke:
Sure. So 2018, 2019, 2020. I imply each single yr. So my husband Wealthy being a coach was like, “Do you want some accountability this time as a result of we actually want you to rewrite your 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 file 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 performed or not.” So I did, I revised that e book. It re-recorded, it’s up to date to 2022. So I did that. Actually, actually completely happy.

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 have been going to boost charges seven instances this yr and which means a large and sudden slowdown to the economic system. So I knew that was coming and I needed to be ready. So I needed to have a fund as a result of I needed to have a giant 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 associate. I’m right here in Dallas proper now, able to go meet together 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 received this one performed and I received the appropriate associate 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 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 previous. They’re sort 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 shifting from California to Dallas they usually’re going to count on California requirements. So we’re actually making these locations good. All of the fairness goes into the fund, all of the upside and we simply share it. 75, 25 with the traders, so.

Dave Meyers:
That’s superior.

Kathy Fettke:
We did it. I’m tremendous excited and we’re benefiting from this time when so many individuals are afraid they usually shouldn’t be, however they’re. As a result of folks imagine headlines which we’re taking a look at gross sales volumes, I’m simply going to say this actually fast, however gross sales volumes as we speak will not be that totally different than pre-pandemic. Persons are nonetheless shopping for and promoting houses, however you’ll be able to’t examine yr over yr information. You’ll be able to’t examine now with loopy, proper? You’ve received to return to pre-pandemic. So headlines know the way to freak folks out. They’re evaluating now from final yr, which was an unprecedented yr. Don’t do it. Don’t 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. Nicely, congratulations to all of you as a result of my actual property targets are lame in comparison with all of yours. I used to be going to say that my purpose was launching this podcast with all of you, which is true and actually recognize you saying that, Kathy. But additionally recognize all of you and Jamil, wherever he could also be getting ready for his TV present launch that you simply all helped me make one among 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 return again and speak about our targets for 2023.
All proper. Time for 2023 targets. James, you talked a giant recreation about your plan to hit 200 million in gross sales. So let’s hear about this purpose and your plan of assault for 2023. I suppose is that this crucial purpose you’re going after subsequent yr?

James Dainard:
Nicely, no. An important one is to get somewhat bit extra. In order that they’re sort of counter, I received 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 rationale I wish to do this extra is, I’m attempting to get out of the service aspect as a lot and get the appropriate employees and we now have an ideal workforce, develop the workforce after which be extra within the investor. As my profession as an investor over the past 18 years, it’s at all times been plenty of palms on arduous work and getting within the weeds, getting issues performed, fixing issues. As I’m getting older and doing extra offers and getting extra capital, I wish to be extra passive.
So which means I actually wish to give attention to the long run funding targets, not simply racking these checks in. So that’s the final purpose, is to rent up, usher in some extra companions within 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 appropriate groups to continue to grow. As a result of I do assume there’s going to be a considerable quantity of alternative for the following 12 months. When you’ve got the appropriate groups collectively, you’ll be able to actually let your cash work and develop. So I suppose the most important one is see my youngsters and spouse extra and work much less, however nonetheless develop the companies and give attention to the larger image. That $200 million in gross sales, I’ve been chasing this for 3 years now and I can not get there.
What I spotted is it’s as a result of I persist with what I do know so effectively and what we’re actually good at for us as a dealer and a brokerage, we solely promote what we all know very, very effectively. I gained’t promote any sort of funding that I haven’t at present performed so as a result of we wish to know the way to bundle it, look it and assist folks work via that funding deal. We simply don’t … For instance, on warehouse leasing house, I’ve by no means performed that earlier than. We don’t promote that. It’s simply we wish to be sure that we’re actually serving to our purchasers via. However that’s at all times based mostly on my expertise, that doesn’t imply I can’t deliver in additional folks to assist enhance the shopper’s expertise. So I’m going to be truly … To get to this purpose of 200 million, we’re we’re going to double our gross sales workforce, which lots of people are shrinking their gross sales workforce for this 2023. All people’s pulling again proper now and simply going, “Okay, let’s get secure. I’m doubling down.” So we’re hiring two instances extra.

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

James Dainard:
Undoubtedly on the gross sales aspect, that’s for positive. There’s plenty 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 have been simply attempting to generate income. The second factor is, what it did is folks gotten actually lazy on their every day behavior. It began turning into too simple. If you happen to’re a dealer, you didn’t have to fret concerning the advertising plan, you needed to simply throw an indication within the yard and work out the way to feed the affords and work that deal as finest as attainable. That isn’t promoting. That’s feeding affords and that’s negotiating at that time.
So plenty of easy habits that you simply want so far as an investor, a dealer, a lender, these guidelines received damaged, whether or not it was underwriting, the way you have been doing them, what you have been shopping for, in the event you might execute. In order that’s sort 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 positively seen a … It’s getting simpler throughout the board property managers, we’ve been capable of employees up somewhat bit extra internally for our syndication properties in our inside leases. Superintendents are positively beginning to float round much more, building employees as a result of plenty of large builders laid off. Lots of people are stopped shopping for their forecasting to not be shifting as a lot. So sure, the hiring is getting somewhat bit simpler. Not in all sectors.
I believe my basic advertising, 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 found out is I solely have a lot house that I can develop that 200 million in. There’s solely so many single household leases, repair and flip property’s growth websites that we will promote to be tangible and to continue to grow. There’s solely a lot alternative on the market. You bought to supply sufficient off market, on market. So what we’re actually doing is we’re doubling and tripling down on segments that we simply began that we do some enterprise in. As brokers, we supply plenty of filth for builders in Seattle the place we’re discovering the property, locking it up, promoting it to them on a time period. So what we’re doing is we’re doubling down on these large sectors. So multi-family business.
We’re simply attempting to develop 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 enterprise. However if you’re doing this many offers, you get caught within the weeds and also you simply wish to get offers performed and it’s going effectively. So now we’re attempting to develop the segments and perhaps a part of my enterprise shrink somewhat bit simply to give attention to 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 over the past 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 generally is a lot simpler in our massive growth offers, or syndicating, or lending of cash as a result of we achieve this many alternative issues within the Pacific Northwest, it’s important to maintain them narrowed in. Then we’re additionally attempting to choose up a thousand extra doorways this yr. I believe we will hit that.

Dave Meyers:
Simply throw that in. Simply, oh, by the 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 will do this. We’re going to be doing that via 10, 31 alternate workforce. We’re wrapping up a pair proper now the place we’re going from seven doorways to 30 proper now. We’ve wrapping up a pair 10, 31 exchanges. Then truthfully, 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 will get in that.
We’re very enthusiastic about that as a result of it’s arduous to amass good rental property that may pay a excessive yield in Washington State. So large targets, however you bought to have your targets large. Your targets aren’t large, you don’t grind as arduous. So it retains me on the hamster wheel, however I’ve a sure purpose to get to. I desire 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:
Nicely, so James, I wish to ask you earlier than we transfer on, such as you stated, so your philosophy about purpose setting is to set large targets. Does that imply, you recognize 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 a great query. I set my targets larger and I believe it is determined by who you’re as an individual. Some folks like that gratification of, “Hey, I received this performed, examine it off an inventory.” I imply, to be sincere, if I’ve an inventory and I received to cross issues off, it is rather gratifying. Like, “That is performed, that is performed.” There’s one thing about that that’s … Okay, even when it’s, “Hey, I picked up my groceries performed,” however I’m an individual that I like failure makes me work tougher. Success typically 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. Perhaps it’s not the healthiest behavior, however I wish to make it to the place I’m at all times attempting to push myself to that code crimson. Often which means hit attempting to get to a purpose that I couldn’t hit or that I assumed it might be a protracted shot. I’d reasonably have a protracted shot purpose 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 purpose, 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, 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 method an excessive amount of caffeine nervousness and it turns into a complete basket case and also you simply get issues performed.

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

James Dainard:
That’s one among my largest targets for 2023. Give up ingesting Rockstar. It’s a giant one.

Henry Washington:
Nicely, 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 now have targets we will’t hit?”

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

Kathy Fettke:
No, it’s humorous as a result of I used to be like that for a few years, 20 years simply charging. I believe life simply has a method of calming you down as you become older, 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 if you’re in Downdog. It’s identical 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 received 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 lovely. I needed a type of so dangerous after I was a child. What are they known as? Energy wheels?

Henry Washington:
Energy wheels.

Dave Meyers:
Energy wheels, proper? Yeah.

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

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

Dave Meyers:
Yeah.

James Dainard:
If you happen to had that it was having Reebok pumps.

Dave Meyers:
Oh my God.

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

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

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

Dave Meyers:
Yeah. There’s nonetheless time.

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

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

Kathy Fettke:
So enjoyable. So enjoyable to see her. All people … Not everyone, however plenty of instances you need your youngsters to work and your enterprise 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 the perfect 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 folks in-

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

Kathy Fettke:
What else? Clearly, the fund holding that rising after which the massive one is working via a few of the tasks that I began years in the past which have been difficult. We’ve floor up growth tasks, so it is a powerful time for builders. So my purpose is after all to do as finest as I can for our traders. We truly offered out two of our subdivisions early this yr, so the timing was nice, however we’ve received three extra. So simply giving all of it all the things. I’ve received creativity, advertising, working, like I stated with our high-end luxurious houses. We’re working with the shared trip mannequin with Ember Properties, which is like Picasso. And that’s only a phenomenal mannequin the place folks can have these trip houses and never must pay for the entire dwelling as a result of who makes use of their trip dwelling on a regular basis? Individuals don’t.
It’s a waste of house. It’s a waste of land for folks to have these trip houses they don’t use. I imply the place I stay in Malibu, it’s 50% occupied as a result of all these wealthy folks personal houses which are empty and that’s not nice. So it is 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 tasks I’m already in to do the perfect I can for my traders. Now what Wealthy would say is make it sensible. Actually received to … What does that imply? What number of? Get it down in writing with numbers and dates and be particular. In order that’ll be what I do on January 1st.

Dave Meyers:
Good. Nicely, in the event you don’t know what Kathy’s speaking about, about SMART targets, it is a actually widespread purpose setting framework that’s tremendous useful. SMART is an acronym. S stands for particular. So I’m going to learn this, I haven’t simply memorized this. Particular says, to ensure that a purpose to be efficient, it must be a particular purpose. Solutions query, what must be achieved, who’s liable for it, what steps should be taken to attain it. M is for measurable. I believe that is tremendous necessary.
Clearly, I’m a knowledge nerd, however quantifying your targets makes it simpler to trace your progress. You might have to have the ability to maintain rating if you wish to set a purpose. A is achievable. So James, I don’t know in case your large 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 truly necessary to you and that it’s necessary to your large image. T is time-bound, which I believe is basically necessary too. You must give your self a deadline. So in the event you’re all in favour of purpose setting and desire a framework, SMART targets is a very, actually great way to do this.

Kathy Fettke:
Dave, that’s why I didn’t accomplish the mastermind one. I used to be like, “Yeah, I 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 would say that I achieved it as a result of I did have one, however that’s not what I actually had in thoughts. However what I had in thoughts, I didn’t write down.

Dave Meyers:
Completely. As a result of I suppose the method of doing a SMART purpose is plenty of the work you must accomplish your purpose. If you happen to can work out what particularly you need it to be and what the metric of success is and if you’re going to do it by, that’s plenty of the work for lots of those targets. So it forces you to take a few of the ambiguity out of it after which you’ll be able to give attention to execution and fewer on what is that this factor going to be? I suppose it simply helps. All proper. Henry, what are your targets for 2023? I suppose let’s simply begin truly with what’s your philosophy on purpose setting?

Henry Washington:
So yeah, my targets for 2023, I wish to maintain them easy. So I sort of simply carry over the identical targets after which both alter them based mostly on what occurred within the earlier yr and the way that made me really feel or and the way that made us really feel about the place we wish to go the following yr. 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 targets round hiring folks this yr as a result of we’re simply nonetheless a small operation. I nonetheless do acquisitions. My spouse is our property supervisor, my handyman is my sister-in-law, proper? I employed a social media supervisor this yr so I might take social media off my plate so I might focus extra on the precise enterprise of investing in actual property. So subsequent yr I wish to rent … We’re going to usher in anyone 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 youngsters extra. However for me, what’s necessary about targets is A, that you’ve them. Proper? So you must write your targets down. I believe there’s one thing highly effective about truly writing them, like placing pen to paper. You’ll be able to sort them and that’s cool. However after I write my targets down, I don’t know. It feels extra actual. It feels extra like one thing that I’m going to look to attain. So a few of the hacks that I do with my targets is just not solely do I write them down, however I write them a number of instances a day. So day-after-day after I get up within the morning, I work out after which I sit down and I write my targets time and again. I attempt to write them three to 5 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 targets time and again as a result of for me, it’s a mindset hack and folks get little flu, flu if you speak about mindset, however for me a mindset is a psychological software to assist me keep bodily disciplined with the duties. So me writing them day-after-day is basically simply me ensuring that my targets are staying on the forefront of my mind in order that as I’m truly doing issues all through the day, I’ve my targets in thoughts as a result of I put them on the entrance of my mind each single morning. So it helps me work in direction of these issues. It helps me after I’m time blocking, I’m ensuring that I’m blocking time and dealing on issues which are related to these targets. One other factor that I do is I put my targets in image type after which I’ll save them as a imaginative and prescient board on the house display in my cellphone, simply in order that … I received your cellphone in my hand all day.
So each time I am going to unlock my cellphone, I can see my imaginative and prescient board. It helps me bear in mind, particularly if I really feel like … As a result of we’re all going to get into locations the place we really feel just like the issues that we’re doing are spinning wheels, however these wheels aren’t truly getting us nearer to our targets. Then I get overwhelmed. And so after I get overwhelmed, it’s very simple for me to only look and see, “Okay, if what I’m doing proper now isn’t shifting me nearer to one among 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.” Identical to James stated, you get up and also you’ve received the fires in your inbox and it’s simple to only give attention to these fires. However typically what I’ve observed is all these fires aren’t actually fires and all these fires don’t actually take me to do one thing.
Typically it’s a hearth that anyone else thinks is a hearth that I’ve to deal with when it’s actually simply one thing I have to push again on them to handle. It’s not that large of a deal. So it helps me to remain targeted. It helps me to at all times bear in mind the issues I should be engaged on should be pushing me in direction of these targets. Then I additionally like to jot down my targets down after which I stick them all over the place. So in my workplace you’ll be able to’t see it. However on the wall right here, on the aspect, on the sticky be aware, I’ve received targets written down time and again. On my workplace at dwelling, similar factor hanging from my displays are my targets. Subsequent to my mattress, I’ve my targets. I even have my targets on a sticky be aware within the bathe in order that after I’m showering I see my targets.

Kathy Fettke:
Wow.

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

Henry Washington:
Sure, I wallpaper my home with my targets in order that I see them all over the place as a result of I simply wish to make it that a lot simpler for me to remain targeted on the duties that I’m doing ought to truly be shifting me in direction of these targets or else it’s in all probability not as necessary 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 are necessary. I simply really imagine that there’s energy in repetition, seeing issues time and again since you’re going to consciously, your efforts will push you. Consciously, you’ll do duties that can push you in direction of these targets, but additionally subconsciously, you’re going to begin doing issues which are going to push you towards these targets as effectively.

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

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

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

Dave Meyers:
I prefer it.

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

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

Dave Meyers:
Nicely, in the event you’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 are supposed to remain not room temperature. I don’t know, however I’m like, hmm, I might in all probability toss a beer or two in there, perhaps.

Dave Meyers:
Okay.

Henry Washington:
Proper.

Dave Meyers:
All proper. Nicely, these feels like some bold nice targets. Is there another ideas any of you have got or ideas on purpose setting that you simply 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 sort of based mostly on EOS.

Dave Meyers:
Oh, yeah. Yeah.

Kathy Fettke:
Yeah. Conferences are simply such a waste of time more often than not. You’ve received the loud mouths who provide you with concepts they usually simply derail the assembly. Lots of people hate conferences. So with Ninety.io, you mainly have your headlines. All people simply will get just a few seconds to say one thing that everyone within the firm must know. Then you definately assessment your to-dos, that was purported to be performed 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 performed 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 performed 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 your complete group needs 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 might be me. So this simply retains it on observe. Anybody can name out and say, “Hey, it feels like that is one thing for a subgroup. If you happen to 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 in the beginning of the yr and breaks it out into quarterly steps. What’s the primary chunk of this elephant? What’s the very first thing we have to do? Then you definately take that quarterly purpose 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 yr 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 these items which are telling us let’s prepare for the brand new yr. So we get targeted for just a few months after which life occurs, issues occur, then we decelerate, perhaps we get off observe. 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 if you’re planning your targets, don’t simply plan your targets, however plan a 90-day plan. So take your targets and you’ll Google 90 day plan. There’s tons of templates, however you’ll be able to basically simply break your targets out into the what’s the purpose, who do you must get it performed, after which what steps are you going to take inside every month within the first 90 days to attain that purpose.
It’s sort of like some persons are most efficient within the morning after which they path off. In order that they reap the benefits of the mornings they usually attempt to be as productive as attainable in order that in the event that they path off, they nonetheless get plenty of issues performed. You are able to do the identical factor along with your targets and attempt to be the most efficient on attaining your targets within the first 90 days. Then, in the event you path off, you’ve received a giant head begin inside these first 90 days. So that you might be tremendous strategic, plan out these first 90 days and whilst you’re nonetheless motivated about getting your targets performed, you’ll be capable to accomplish far more of these duties since you’re feeling like that’s what try to be doing earlier than life smacks you within the face after which you must throw your targets out the window anyway.

Dave Meyers:
That’s an ideal 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 pointers, I like these targets. I actually recognize that every one of you mainly stated along with monetary targets have life-style targets too. I imply, most of us make investments for causes which are simply past simply making some huge cash, but additionally capable of do issues which are fulfilling to you as effectively that you simply really feel are necessary and significant. That’s crucial for purpose setting as effectively. I’ve one final purpose setting query for you guys. If you happen to might create a purpose for the On The Market podcast for 2023, what would that purpose be?

James Dainard:
I believe the primary purpose is to be sure that David Inexperienced wakes up very unhappy once we take over the primary spot. Nothing towards David Inexperienced, however typically you simply received to do one thing to anyone cereal and take over that primary spot.

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

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

Dave Meyers:
Yeah.

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

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

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

James Dainard:
That’s not a purpose. 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, effectively into in the marketplace, and I discovered Article by Actual Wealth Kathy’s firm for high actual property podcasts and On The Market was not on it. So I stated it to Kathy, I known as her out somewhat bit, was asking why, what we now have to do to make her high podcast listing for subsequent yr.

Kathy Fettke:
So the funniest factor is I didn’t even know that listing existed in the perfect half was that in some way my present isn’t primary. I’m like, “That sounds sort of self-serving.” Anyway, we should have an ideal search engine marketing particular person because-

Dave Meyers:
Completely. Excellent.

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 a great dialog together with her.

Dave Meyers:
All proper. Nicely, now we’ll see extra sincere, we didn’t make it the primary yr. We needed to show ourselves that after … What are we at? 50 one thing episodes at this level that have been worthwhile. All proper. Nicely, my purpose subsequent yr is to get at the least within the high 5 for investing exhibits. I believe we will positively 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 achieved one thing nice.

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

Dave Meyers:
Oh, wow. That’s so humorous. Yeah, all Dave’s. Nicely, three Dave’s on the high sooner or later.

Henry Washington:
I imply, let’s not low cost the truth that we hit a purpose 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 all your assist for giving us these good evaluations, for sharing it with your pals. I don’t know in the event you guys have seen this, however I believe yesterday we’re recording this in early December, the Spotify yr wrapped factor got here out. I don’t know in the event you guys know what that is the place it exhibits you the stuff you hearken 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 have been in high of the BiggerPockets charts and above Dave Ramsey on a pair folks’s particular person lists at the least.
So we recognize you all. Thanks for supporting the present. Hopefully subsequent yr is one other yr of nice progress for this present. Kathy, James, and Henry, thanks a lot for sharing your targets and your philosophy on setting targets. Actually recognize the within look into the way you all take into consideration what you wish to accomplish and the way you truly go about undertaking these issues. Let’s simply do a fast reminder right here of how anybody listening to this will join with you. Kathy, the place ought to folks discover you?

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

Dave Meyers:
All proper, James?

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

Dave Meyers:
Henry, what about you?

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

Dave Meyers:
All proper, nice. You will discover me both on BiggerPockets or on Instagram the place I’m on the Knowledge Deli. Thanks all a lot for listening to this episode On The Market. We’d love in the event you both go on Instagram or on the BiggerPockets boards, inform us what your targets are for 2023. We’d love to listen to them and the way you’re going to go about setting and 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, enhancing by Joel Esparza and Onyx Media, researched by Puja Gendal, and a giant due to your complete BiggerPockets workforce.
Nicely, content material on the present in the marketplace are opinions solely. All listeners ought to independently confirm information factors, opinions, and funding methods.