How you can 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 at present we’re going to be speaking about 2023 targets. First, we’ll assessment the targets that we now have for 2022, what we hit, possibly what we failed at, after which discuss what we’re trying ahead to and aiming for in 2023. For this dialog, I’ve my buddy Henry Washington with me. Henry, what’s occurring?

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

Dave Meyers:
Likewise. We even have James Dainard.

James Dainard:
What’s occurring guys?

Dave Meyers:
Kathy Fettke reside from Dallas proper now.

Kathy Fettke:
Howdy. some properties. Tremendous excited.

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

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

Dave Meyers:
Yeah.

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

Dave Meyers:
I do know most individuals are 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 girls like to purchase footwear and I like to purchase homes.

Dave Meyers:
I’m with you. All proper. So should you 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 optimistic facet of issues. I’d love to only hear earlier than we go into subsequent yr’s planning, what a number of the targets 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 targets, and the way’d you do in your checklist of targets? Oh, he’s dancing.

Henry Washington:
Yeah, man.

Dave Meyers:
Fairly good.

Henry Washington:
You recognize what’s humorous? The actual property, the market shifts if you’ll, all through 2021 and 2022 type of correlates to how and why I hit sure targets. So my targets fairly excessive degree the place I wished to purchase 15 doorways that hit a ten% money on money return with a web money movement of … I shoot between three and 500 a door. So for 2022, we ended up doing, let’s see, we’re at the moment at 30 doorways that we purchased and that hit that quantity that we’re holding. Then should 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 underneath 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 obtained a giant chunk as a result of we purchased a industrial workplace complicated and that wasn’t on the plan for this yr, however that had 11 models in it. Then we’re closing the yr with closing on a 15 unit trailer park.

Dave Meyers:
Oh, good. Properly, I assume to begin with, once we get to the a part of the present, we’re going to speak about 2023 targets. We’ve got to carry you accountable for a stretch purpose. In the event you tripled your purpose for final yr, have you ever set the next one?

Henry Washington:
That’s why I led with how the market is talking to those targets as a result of I 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 preserve the remaining. So my flip purpose was to do about 15 flips and attempt to hit about 1.2 million and we had been properly underneath that. So so far as the quantity, we did 18 however we solely obtained to about 761,000 on that purpose. So a number of these had been smaller flips, a few of these had been partnerships. So I used to be solely taking 50% of the proceeds there. However in 2021, it was the precise reverse. I didn’t hit my rental door purpose. We purchased approach much less leases however we did far more flips and far more revenue.
We did over 1.2 million in 2021 and we weren’t planning on it. So the market was simply telling us in 2021, you’re going to make large earnings, promote all the pieces you may that is smart to, after which redeploy these belongings into issues that you just’re going to carry long run. Then 2022 was a little bit little bit of the other. So we positively, positively missed the purpose on flips, however that’s okay as a result of we properly exceeded our purpose on holds and I obtained into this enterprise for ahold. So if I’m going to overshoot one and miss the opposite one, I need it to be this fashion. I need to seize extra doorways that I’m going to maintain endlessly.

Dave Meyers:
Oh, congrats man, that’s superior. I imply nice to listen to that you just obtained properly and above your purpose. James, what about you? What had been your targets in 2022, and the way’d you carry out?

James Dainard:
Man, 2021 and 2022 have been just like the craziest busy years I’ve ever been in actual property. It’s been completely nuts. For 2022, I had a couple of targets that I actually making an attempt to get to. The primary one was, I used to be making an attempt 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 quick on that and we did about … We’ll in all probability find yourself clocking, we obtained yet one more 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 wished to accumulate about 4 to 500 extra doorways for our portfolio.
We’re going to do that extra via syndicating, not via … Properly, I type of do that two other ways. Me and my enterprise associate, we do bigger offers collectively after which we do purchase a number of 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 making an attempt to get that nearer to 2000 by the top of the yr and we fell quick, 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 may’t pressure 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 wished to lock all of our portfolio charges in. So we spent a number of time in that final quarter of 2021 and 2022 forecasting our complete portfolio out. As a result of a number of occasions once we’re shopping for these condo buildings, they’re on 5 yr notes. So what we wished to do is we wished to stagger all of our loans out. A, lock the charges that had been low-cost. So we’re in a position to get actually good cash on all these offers and enhance the money movement however then additionally stagger out all of our balloon funds as a result of we wished to ensure that we weren’t operating right into a fiscal yr that the place we had been simply going to get crushed with refi’s occurring. So we spent a number of time … We knew 2021 was this loopy progress yr. So at first of 2022, we simply stored with the gross sales however we actually wished to only have a look at all the pieces internally, audit it, stabilize all the pieces out. So we had been very proud of hitting that purpose.
We don’t have one mortgage coming due for at the very least 4 years and so we don’t have to fret about some type of charge bounce or something like that. In order that was a giant purpose for us to hit. Then one different factor that we had been positively had been happy 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 improvement 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 a number of these within the first two quarters of the yr as a result of I believe it will’ve been so much much less if we might’ve hit into that third quarter. So we positively truly, on the quick time period within the gross sales facet, we kick very near our targets if not excelled. We didn’t decide up a number of rental doorways or as a lot as we wished simply because the offers weren’t there. So I’m positively going to be doubling down on 2023 as we’re seeing higher deal movement to accumulate increasingly doorways.

Dave Meyers:
Properly, to begin with, congrats James. It feels like an superior yr general, but it surely’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 targets first. As a result of once I’m speaking a few purpose of hitting 1.2 million and doing 15 flips, James is like, “I need to do 1.2 million on one deal.”

Kathy Fettke:
Objectives.

Henry Washington:
We’re making an attempt to get 200 million. I’m like, “That’s cool.” I simply need to make one million off of my 10 offers.

Dave Meyers:
All proper. Yeah, you’ll be Henry, we 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 truly 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 downside.

Dave Meyers:
Fell quick at 160.

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

James Dainard:
You bought to watch out what you ask for. Each morning I get up and I’ve a hearth in my e mail field. There’s 10 points, allow points, contractor points, however you simply set to work via them and simply work out the best way to put the proper programs in there and likewise simply be a little bit 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 once I test my e mail, I’m not doing it on a ship.

Dave Meyers:
That could be a essential distinction. Properly, all the hearth emails is an effective 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 obtained 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 this 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 once I obtained the e-mail from Caitlin saying that I used to be on and I’ve that ugly face cry, that completely satisfied 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 unsuitable, 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 a very powerful issues we need to accomplish past what our regular work is. I imply all of us have issues that we’re doing and dealing via, however what can we need to do past that? Pushing ourselves. So I had three, and once more that’s Wealthy’s factor is I preserve the massive ones to a few 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 best way to do it. I believe I used to be scared as a result of I haven’t accomplished it earlier than. So I simply did one and I believe it was actually enjoyable and went properly. 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:
Properly, you’re a glorious candidate to steer that mastermind, Kathy. So we’d like you to do it in 2023.

Kathy Fettke:
Oh, thanks. Thanks. I actually admire that. I’m going to do it. Okay. Then my second one was to complete my revision of my 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 smart. None of it’s potential at present.” 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:
In fact.

Kathy Fettke:
Sure. So 2018, 2019, 2020. I imply each single yr. So my husband Wealthy being a coach was like, “Do you want some accountability this time as a result of we actually want you to rewrite your e-book. It’s very outdated.” So I’m like, “Sure, assist me.” So he set an appointment on the audio recording studio the place I’d report it, non-refundable, and he is aware of that I didn’t need to lose 1000’s of {dollars}, set the date and he’s like, “That is the date you’re displaying up whether or not it’s accomplished 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 satisfied.

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, properly clearly the Fed had said they had been going to boost charges seven occasions this yr 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 a giant bundle of money. Hundreds of thousands and tens of millions of {dollars}. How about 20 million simply prepared to accumulate? We did it.
I discovered my good 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 obtained this one accomplished and I obtained the proper associate and she or he’s each a property supervisor right here in Dallas. I’ve been working together with her for 10 years. I do know her very properly and she or he’s excited and she or he’s mainly doing her deal, which is shopping for older houses however not too previous. They’re type of mild rehab. We’re fixing them as much as very nice A category situation as a result of so many excessive tech individuals are shifting from California to Dallas they usually’re going to 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 at present aren’t that totally different than pre-pandemic. Persons are nonetheless shopping for and promoting houses, however you may’t evaluate yr over yr information. You may’t evaluate now with loopy, proper? You’ve obtained to return to pre-pandemic. So headlines know the best 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 evaluate now with then. So anyway, I’m thrilled possibly that different individuals are studying these headlines as a result of we’re getting in and there’s simply not competitors when you may are available in with money, it’s implausible.

Dave Meyers:
Superior. Properly, 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 admire you saying that, Kathy. But additionally admire all of you and Jamil, wherever he could also be making ready for his TV present launch that you just all helped me make one in every of my annual and lifelong targets come true, so. That’s a giant one for me. All proper. Let’s take a fast break after which we’re going to return again and discuss our targets for 2023.
All proper. Time for 2023 targets. James, you talked a giant sport about your plan to hit 200 million in gross sales. So let’s hear about this purpose and your plan of assault for 2023. I assume is that this a very powerful purpose you’re going after subsequent yr?

James Dainard:
Properly, no. An important one is to get a little bit 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 making an attempt to get a little bit bit out of my operational facet of the enterprise on the gross sales facet. So I need to step out extra however then proceed to develop. The rationale I need to do this extra is, I’m making an attempt to get out of the service facet as a lot and get the proper employees and we now have an amazing group, increase 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 a number of arms on laborious work and getting within the weeds, getting issues accomplished, fixing issues. As I’m getting older and doing extra offers and getting extra capital, I need to be extra passive.
So meaning I actually need to deal with 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 shopper and repair facet. Then I can focus extra on the funding technique facet, like constructing the proper 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. You probably have the proper groups collectively, you may actually let your cash work and develop. So I assume the most important one is see my children and spouse extra and work much less, however nonetheless develop the companies and deal with the larger image. That $200 million in gross sales, I’ve been chasing this for 3 years now and I can not get there.
What I noticed is it’s as a result of I stick with what I do know so properly and what we’re actually good at for us as a dealer and a brokerage, we solely promote what we all know very, very properly. I received’t promote any sort of funding that I haven’t at the moment accomplished so as a result of we need to know the best way to package deal it, look it and assist folks work via that funding deal. We simply don’t … For instance, on warehouse leasing area, I’ve by no means accomplished that earlier than. We don’t promote that. It’s simply we need to ensure that we’re actually serving to our purchasers via. However that’s at all times primarily based on my expertise, that doesn’t imply I can’t convey in additional folks to assist enhance the consumer’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 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 occasions extra.

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

James Dainard:
Undoubtedly on the gross sales facet, that’s for positive. There’s a number of 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 folks. They had been simply making an attempt to earn money. The second factor is, what it did is folks gotten actually lazy on their each day behavior. It began changing into too simple. In the event you’re a dealer, you didn’t have to fret concerning the advertising and marketing plan, you needed to simply throw an indication within the yard and work out the best way to feed the provides and work that deal as finest as potential. That isn’t promoting. That’s feeding provides and that’s negotiating at that time.
So a number of easy habits that you just want so far as an investor, a dealer, a lender, these guidelines obtained damaged, whether or not it was underwriting, the way you had been doing them, what you had been shopping for, should you 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 facet, we’ve positively seen a … It’s getting simpler throughout the board property managers, we’ve been in a position to employees up a little bit 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 a number 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 a little bit bit simpler. Not in all sectors.
I believe my normal advertising and marketing, accounting, these issues, these are nonetheless laborious to rent for. However our actual property trades the specialists. It positively is. So what we need to do is take this and what I’ve discovered is I solely have a lot area that I can develop that 200 million in. There’s solely so many single household leases, repair and flip property’s improvement websites that we are able to promote to be tangible and to continue to grow. There’s solely a lot alternative on the market. You bought to supply sufficient off market, on market. So what we’re actually doing is we’re doubling and tripling down on segments that we simply began that we do some enterprise in. As brokers, we supply a number of filth for builders in Seattle the place we’re discovering the property, locking it up, promoting it to them on a time period. So what we’re doing is we’re doubling down on these large sectors. So multi-family industrial.
We’re simply making an attempt to increase it relatively than simply create extra repair and flip and bur alternatives. We need to create the alternatives in all these totally different segments, which looks like a no brainer to be doing that as you’re rising your enterprise. However once you’re doing this many offers, you get caught within the weeds and also you simply need to get offers accomplished and it’s going properly. So now we’re making an attempt to develop the segments and possibly a part of my enterprise shrink a little bit 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 need to cease rising, however how do I need to develop and if I need to develop as an investor, then I would like to surrender a few of these different issues that create superb earnings. That’s okay as a result of the larger image is I generally is a lot more practical in our giant improvement offers, or syndicating, or lending of cash as a result of we accomplish that many various issues within the Pacific Northwest, you need to preserve them narrowed in. Then we’re additionally making an attempt to select up a thousand extra doorways this yr. I believe we are able to hit that.

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

James Dainard:
I believe there’s going to be a lot alternative. I believe we are able to do this. We’re going to be doing that via 10, 31 trade 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 actually, with folks not shopping for greater offers, the offers are there, however we have to employees up accordingly to maintain these models. So we’re hiring proper now, like we’re shopping for a thousand doorways. I believe we are able to get in that.
We’re very enthusiastic about that as a result of it’s laborious to accumulate 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 laborious. So it retains me on the hamster wheel, however I’ve a sure purpose to get to. I need a sure amount of cash each month from passive earnings and I’m not there but. So I’ve to create extra earnings, I’ve to save lots of my cash, stick it away, and simply let that continue to grow so I can get to that magical quantity that I’ve been chasing.

Dave Meyers:
Properly, so James, I need 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 already know you may not hit them annually? Or what’s your strategy to how attainable you assume your targets ought to be and what number of of them you set?

James Dainard:
I believe that’s a very good query. I set my targets greater and I believe it is dependent upon who you’re as an individual. Some folks like that gratification of, “Hey, I obtained this accomplished, test it off a listing.” I imply, to be trustworthy, if I’ve a listing and I obtained to cross issues off, it is rather gratifying. Like, “That is accomplished, that is accomplished.” There’s one thing about that that’s … Okay, even when it’s, “Hey, I picked up my groceries accomplished,” however I’m an individual that I like failure makes me work more durable. Success typically makes me a little bit … 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 wish to make it to the place I’m at all times making an attempt to push myself to that code pink. Often meaning hit making an attempt to get to a purpose that I couldn’t hit or that I believed it will be an extended shot. I’d relatively have an extended 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 anxiousness and it makes me work more durable, smarter and do it in another way/ it’s the easiest way for me to do it, but it surely’s not for everyone.

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

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

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 in every of my greatest targets for 2023. Stop ingesting Rockstar. It’s a giant one.

Henry Washington:
Properly, 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 targets we are able to’t hit?”

Dave Meyers:
Properly, James, I completely relate, however let’s go to Kathy. I really feel like she in all probability has a more healthy thought of the best 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 approach 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 children develop up and also you begin to see issues sag once you’re in Downdog. It’s identical 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 need to spend time with my grandson who by the best way simply obtained a police automotive that the little ones guys might drive. So now each evening, he patrols the neighborhood along with his police automotive.

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

Henry Washington:
Energy wheels.

Dave Meyers:
Energy wheels, proper? Yeah.

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

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

Dave Meyers:
Yeah.

James Dainard:
In the event you had that it was having Reebok pumps.

Dave Meyers:
Oh my God.

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

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

Kathy Fettke:
We often sit down on New 12 months’s Day and do it collectively as a household after which the following week we do it with our firm. But when I had been to guess what will probably be, I’ve already stated it. I’m going to have and launch essentially the most superior girls’s mastermind. Can’t wait. That will probably be totally flushed out by I believe earlier than January. So possibly that’s nonetheless a, this yr purpose. Possibly 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 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 truly went to Europe together with her this summer time and she or he got here with me to Portugal to have a look at the Golden Visa program and this system we had been setting as much as assist People 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 concept 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 one in every of my targets is to assist my daughter. I’m an element proprietor on this enterprise now and assist her launch this factor. So I’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. Everyone … Not everyone, however a number of occasions you need your children to work and your enterprise with you, however they want to decide on that. By no means pressure that. Simply be so superior that they need to do it with you and never too younger. They should go discover out what different jobs are like and what different bosses are like after which understand you’re one of the best they usually must go discover that out. However she was prepared and she or he got here to us wanting to do that and she or he’s been booked with three, 4 conversations a day already with folks in-

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

Kathy Fettke:
What else? Clearly, the fund retaining that rising after which the massive one is working via a number of the initiatives that I began years in the past which were difficult. We’ve got floor up improvement initiatives, so it is a robust time for builders. So my purpose is after all to do as finest as I can for our traders. We truly bought out two of our subdivisions early this yr, so the timing was nice, however we’ve obtained three extra. So simply giving all of it all the pieces. 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 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 house as a result of who makes use of their trip house on a regular basis? Individuals don’t.
It’s a waste of area. It’s a waste of land for folks to have these trip houses they don’t use. I imply the place I reside in Malibu, it’s 50% occupied as a result of all these wealthy folks personal houses which might be empty and that’s not nice. So it is a solution to share that in order that there’s shared possession in these trip houses. You get your days. So issues like that. Actually discovering options to the initiatives I’m already in to do one of the best I can for my traders. Now what Wealthy would say is make it good. 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. Properly, should you don’t know what Kathy’s speaking about, about SMART targets, it is a actually well-liked 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 selected purpose. Solutions query, what must be completed, who’s accountable for it, what steps have to be taken to realize it. M is for measurable. I believe that is tremendous essential.
Clearly, I’m an information nerd, however quantifying your targets makes it simpler to trace your progress. You may have to have the ability to preserve 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 ought to be the A. R is related in order that it’s truly essential to you and that it’s essential to your large image. T is time-bound, which I believe is admittedly essential too. It’s important to give your self a deadline. So should you’re fascinated with purpose setting and need a framework, SMART targets is a very, actually great way to try this.

Kathy Fettke:
Dave, that’s why I didn’t accomplish the mastermind one. I used to be like, “Yeah, I need to do a mastermind, however I didn’t make it SMART. I wasn’t particular. I didn’t say many. I didn’t say precisely what that might appear like.” So you may 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 purpose is a number of the work it is advisable to accomplish your purpose. In the event you can work out what particularly you need it to be and what the metric of success is and once you’re going to do it by, that’s a number of the work for lots of those targets. So it forces you to take a number 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 targets for 2023? I assume let’s simply begin truly with what’s your philosophy on purpose setting?

Henry Washington:
So yeah, my targets for 2023, I wish to preserve them easy. So I type of simply carry over the identical targets after which both regulate them primarily based on what occurred within the earlier yr and the way that made me really feel or and the way that made us really feel about the place we need to go the following yr. So we’re nonetheless trying to purchase 15 doorways, we’re nonetheless going to do about 15 flips. Wish to hit that 1.2 million quantity. I do have targets round hiring folks this yr as a result of we’re simply nonetheless a small operation. I nonetheless do acquisitions. My spouse is our property supervisor, my handyman is my sister-in-law, proper? I employed a social media supervisor this yr so I might take social media off my plate so I might focus extra on the precise enterprise of investing in actual property. So subsequent yr I need to rent … We’re going to herald anyone to do acquisitions. I need to get a private assistant to assist me with a number 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 targets is A, that you’ve them. Proper? So it is advisable to write your targets down. I believe there’s one thing highly effective about truly writing them, like placing pen to paper. You may sort them and that’s cool. However once I write my targets down, I don’t know. It feels extra actual. It feels extra like one thing that I’m going to look to realize. So a number 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 occasions a day. So daily once I get up within the morning, I work out after which I sit down and I write my targets time and again. I attempt to write them three to 5 occasions every. I want I had the paper as a result of I’m in my workplace. It’s typically-

Dave Meyers:
Like Bat Simpson on the chalk board?

Henry Washington:
Yeah, precisely. 100%. I’ve a notepad and I write my targets time and again as a result of for me, it’s a mindset hack and folks get little flu, flu once you discuss mindset, however for me a mindset is a psychological instrument to assist me keep bodily disciplined with the duties. So me writing them daily is admittedly 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 the direction of these issues. It helps me once I’m time blocking, I’m ensuring that I’m blocking time and dealing on issues which might be related to these targets. One other factor that I do is I put my targets in image type after which I’ll save them as a imaginative and prescient board on the house display in my 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 keep in mind, particularly if I really feel like … As a result of we’re all going to get into locations the place we really feel just like the issues that we’re doing are spinning wheels, however these wheels aren’t truly getting us nearer to our targets. Then I get overwhelmed. And so once I get overwhelmed, it’s very simple for me to only look and see, “Okay, if what I’m doing proper now isn’t shifting me nearer to one in every of these targets on my cellphone, then I have to readjust what I’m doing as a result of we’re all going to get overwhelmed and we’re all going to get burned out.” Similar to James stated, you get up and also you’ve obtained the fires in your inbox and it’s simple to only deal with 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 centered. It helps me to at all times keep in mind the issues I have to be engaged on have to be pushing me in the direction of these targets. Then I additionally like to put in writing my targets down after which I stick them all over the place. So in my workplace you may’t see it. However on the wall right here, on the facet, on the sticky notice, I’ve obtained targets written down time and again. On my workplace at house, identical factor hanging from my screens are my targets. Subsequent to my mattress, I’ve my targets. I even have my targets on a sticky notice within the bathe in order that once I’m showering I see my targets.

Kathy Fettke:
Wow.

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

Henry Washington:
Sure, I wallpaper my home with my targets in order that I see them all over the place as a result of I simply need to make it that a lot simpler for me to remain centered on the duties that I’m doing ought to truly be shifting me in the direction of these targets or else it’s in all probability not as essential as I believe it’s as a result of we’ll all get overwhelmed with duties. So these are simply little life hacks that I take advantage of to assist me keep centered on the issues which might be essential. I simply actually imagine that there’s energy in repetition, seeing issues time and again since you’re going to consciously, your efforts will push you. Consciously, you’ll do duties that can push you in the direction of these targets, but additionally subconsciously, you’re going to start out doing issues which might be going to push you towards these targets as properly.

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

James Dainard:
How does the sticky notes work contained in the bathe? The one factor I preserve inside my bathe are power drinks. So how does sticky notice work?

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

Dave Meyers:
I prefer it.

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

James Dainard:
See, I used to be fascinated 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:
Properly, should you’re making an attempt to stop, 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 girls 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 in all probability toss a beer or two in there, possibly.

Dave Meyers:
Okay.

Henry Washington:
Proper.

Dave Meyers:
All proper. Properly, these feels like some bold nice targets. Is there another suggestions any of you may have or ideas on purpose setting that you just need to impart on our viewers? Kathy?

Kathy Fettke:
With our enterprise, we use a software program known as Ninety.io. Ninty is spelled out and it’s 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 give you 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 a couple of seconds to say one thing that everyone within the firm must know. Then you definitely assessment your to-dos, that was speculated to be accomplished 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 accomplished and also you’ve introduced it and then you definately go into this part that’s all of the concepts, all of the issues that may be accomplished to enhance or the problems, mainly the issues that have to be mentioned they usually all get put in right here. Then as a gaggle, you progress to the highest, the problems that the whole group desires to speak about. There’s a timer on it.
So that you don’t have individuals who simply dominate with their concept that no person cares about. You recognize what I’m saying? There’s at all times the loud mouth and that could possibly be me. So this simply retains it on monitor. Anybody can name out and say, “Hey, it feels like that is one thing for a subgroup. In the event you actually need to get deeper into the how of this, the to-do right here is to arrange a gathering and also you do it offline in order that the entire group doesn’t 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 yr 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 definitely 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 large 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 firstly 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 12 months’s resolutions, there’s all this stuff which might be telling us let’s prepare for the brand new yr. So we get centered for a couple of months after which life occurs, issues occur, then we decelerate, possibly we get off monitor. Even essentially 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 once you’re planning your targets, don’t simply plan your targets, however plan a 90-day plan. So take your targets and you’ll Google 90 day plan. There’s tons of templates, however you may basically simply break your targets out into the what’s the purpose, who do it is advisable to get it accomplished, after which what steps are you going to take inside every month within the first 90 days to realize that purpose.
It’s type of like some individuals 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 potential in order that in the event that they path off, they nonetheless get a number of issues accomplished. You are able to do the identical factor together with your targets and attempt to be the best on attaining your targets within the first 90 days. Then, should you path off, you’ve obtained a giant head begin inside these first 90 days. So that you will be tremendous strategic, plan out these first 90 days and when you’re nonetheless motivated about getting your targets accomplished, you’ll be capable to accomplish far more of these duties since you’re feeling like that’s what you need to be doing earlier than life smacks you within the face after which it is advisable to throw your targets out the window anyway.

Dave Meyers:
That’s an amazing 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:
Properly, I like all the following tips, I like these targets. I actually admire 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 might be simply past simply making some huge cash, but additionally in a position to do issues which might be fulfilling to you as properly that you just really feel are essential and significant. That’s crucial for purpose setting as properly. I’ve one final purpose setting query for you guys. In the event you 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 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 anyone cereal and take over that primary spot.

Dave Meyers:
We obtained an extended solution 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 prime 10 podcast checklist?

James Dainard:
That’s not a purpose. That’s an expectations, Kathy. We have to discuss expectations going ahead.

Dave Meyers:
So for everybody listening, I used to be like, I neglect what I used to be doing, however I used to be like doing a little analysis. I Googled prime actual property podcasts a couple of months in the past, properly into available on the market, and I discovered Article by Actual Wealth Kathy’s firm for prime actual property podcasts and On The Market was not on it. So I stated it to Kathy, I known as her out a little bit bit, was asking why, what we now have to do to make her prime podcast checklist for subsequent yr.

Kathy Fettke:
So the funniest factor is I didn’t even know that checklist existed in one of the best half was that someway my present isn’t primary. I’m like, “That sounds type of self-serving.” Anyway, we should have an amazing web optimization individual because-

Dave Meyers:
Completely. Superb.

James Dainard:
I additionally discovered that checklist too. So that you do have an web optimization, good web optimization individual.

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

Dave Meyers:
All proper. Properly, now we’ll see extra trustworthy, 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 had been worthwhile. All proper. Properly, my purpose subsequent yr is to get at the very least within the prime 5 for investing reveals. I believe we are able to positively do this. Hopefully make two Dave’s cry. Let’s get David Inexperienced unhappy and Dave Ramsey unhappy 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. Properly, three Dave’s on the prime sooner or later.

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

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

Henry Washington:
Yeah.

Dave Meyers:
Properly, we admire all of you for your entire assist for giving us these good opinions, for sharing it with your mates. I don’t know should 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 should you guys know what that is the place it reveals 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 prime 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 prime of the BiggerPockets charts and above Dave Ramsey on a pair folks’s particular person lists at the very least.
So we admire 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 admire the within look into the way you all take into consideration what you need to accomplish and the way you truly go about conducting these issues. Let’s simply do a fast reminder right here of how anybody listening to this may join with you. Kathy, the place ought to folks discover you?

Kathy Fettke:
Properly, in all probability 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 via nasty Homes.

Dave Meyers:
Henry, what about you?

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

Dave Meyers:
All proper, nice. You’ll find 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 should 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 conducting your targets. Thanks once more. We’ll see you subsequent time.
On The Market is Created by me, Dave Meyer and Caitlin Bennett, produced by Caitlin Bennett, enhancing by Joel Esparza and Onyx Media, researched by Puja Gendal, and a giant due to the whole BiggerPockets group.
Properly, content material on the present available on the market are opinions solely. All listeners ought to independently confirm information factors, opinions, and funding methods.