Dave Meyers:
Hey, what’s up everybody? Welcome to On the Market. I’m your host, Dave Meyer, and at this time we’re going to be speaking about 2023 targets. First, we’ll overview the targets that now we have for 2022, what we hit, possibly 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 good friend 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 dwell from Dallas proper now.

Kathy Fettke:
Howdy. 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 reality although. properties all the time will get me excessive.

Dave Meyers:
Yeah.

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

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

Kathy Fettke:
Some ladies like to purchase footwear and I like to purchase homes.

Dave Meyers:
I’m with you. All proper. So in the event 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 have been and kind 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 record of targets? Oh, he’s dancing.

Henry Washington:
Yeah, man.

Dave Meyers:
Fairly good.

Henry Washington:
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 wished to purchase 15 doorways that hit a ten% money on money return with a web money circulation of … I shoot between three and 500 a door. So for 2022, we ended up doing, let’s see, we’re presently at 30 doorways that we purchased and that hit that quantity that we’re holding. Then in the event you have a look at the closings, now we have scheduled earlier than the tip of the yr. That’s one other 16. So we’re going to be at about 46 doorways. So the unique purpose was 15.

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

Henry Washington:
Yeah. So what occurred was by February I had 20 beneath contract and a few of these ended up falling by 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 items 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. Now we have to carry you accountable for a stretch purpose. Should you 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 hold the remainder. So my flip purpose was to do about 15 flips and attempt to hit about 1.2 million and we have been nicely beneath that. So so far as the quantity, we did 18 however we solely received to about 761,000 on that purpose. So quite a lot 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 manner 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 huge earnings, promote the whole lot 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 undoubtedly, undoubtedly missed the purpose on flips, however that’s okay as a result of we nicely 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 need to seize extra doorways that I’m going to maintain eternally.

Dave Meyers:
Oh, congrats man, that’s superior. I imply nice to listen to that you simply received nicely 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 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 most likely find yourself clocking, we received yet one more month in there, however we’ll most likely be round 160 mil in gross sales, which continues to be nice. Nevertheless it undoubtedly one thing we’re pushing to get to, I’ve created the plan to get to 200 million subsequent yr. Different targets that I had was we wished to accumulate about 4 to 500 extra doorways for our portfolio.
We’re going to do that extra by syndicating, not by … Nicely, I sort of do that two alternative ways. Me and my enterprise accomplice, we do bigger offers collectively after which we do purchase quite a lot of improvement property and we personal it collectively. So now we have our personal set of doorways that are roughly round 1500 doorways in there. So we have been making an attempt to get that nearer to 2000 by the tip of the yr and we fell quick, we hit about 300 doorways for the acquisition. The reason is, I believe we missed that purpose largely 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 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 undoubtedly there and we’ve already boughten considerably extra doorways within the final 60 days than we did all earlier yr from there.
So different targets that we had for 2022 is we wished to lock all of our portfolio charges in. So we spent quite a lot of time in that final quarter of 2021 and 2022 forecasting our complete portfolio out. As a result of quite a lot of instances once we’re shopping for these condominium 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 have been low cost. So we’re capable of get actually good cash on all these offers and enhance the money circulation however then additionally stagger out all of our balloon funds as a result of we wished to make it possible for 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 quite a lot 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 the whole lot internally, audit it, stabilize the whole lot out. So we have been very pleased with hitting that purpose.
We don’t have one mortgage coming due for no less than 4 years and so we don’t have to fret about some kind 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 undoubtedly have 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 most likely 15% progress in values, however we ended up internally by my enterprise accomplice, we did about 30 mil in inclinations, which I’m actually glad we racked quite a lot of these within the first two quarters of the yr as a result of I believe it might’ve been so much much less if we might’ve hit into that third quarter. So we undoubtedly 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 quite a lot of rental doorways or as a lot as we wished simply because the offers weren’t there. So I’m undoubtedly going to be doubling down on 2023 as we’re seeing higher deal circulation to accumulate an increasing number of doorways.

Dave Meyers:
Nicely, to begin with, congrats James. It appears like an superior yr general, nevertheless it’s attention-grabbing 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 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:
Targets.

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

Dave Meyers:
All proper. Yeah, you’ll be Henry, now we 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 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 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 started working by them and simply work out put the precise programs in there and in addition simply be somewhat little bit of a deal junkie.

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

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

Henry Washington:
Simply purchase stuff that works …

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

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

Kathy Fettke:
I received huge 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 all the time thought the best factor on this planet can be to be a co-host on BiggerPockets with Dave Myers. What? What? I imply that was only a dream, not even a purpose. Right here I’m. So I’m critical. That’s superb. I used to be snowboarding once I received the e-mail from Caitlin saying that I used to be on and I’ve that ugly face cry, that comfortable 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 submit that one.

Kathy Fettke:
Yeah, all sweaty from snowboarding and oh my God. So she’s like, “What’s mistaken, 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 by, however what will we need to do past that? Pushing ourselves. So I had three, and once more that’s Wealthy’s factor is I hold the large ones to a few as a result of the mind can’t deal with greater than that.
My huge one was beginning a ladies’s mastermind and I failed. I didn’t do it you guys, I didn’t do it. I did one however I didn’t make it official. In order that’s going to be 2023. I don’t know what stopped me. I believe I simply didn’t know fairly … That’s an excuse to say I didn’t know 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 nicely. In order that’ll be subsequent yr as a result of I simply actually consider in ladies serving to ladies 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 want you to do it in 2023.

Kathy Fettke:
Oh, thanks. Thanks. I actually respect that. I’m going to do it. Okay. Then my second one was to complete my revision of my guide. I wrote “Retire Wealthy with Leases” in 2014. It was so outdated. Then, once I received on this present, I’m like, “Oh, no. Individuals are going to learn that guide and so they’re going to be like, none of this is sensible. None of it’s attainable at this time.” 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 guide. It’s very outdated.” So I’m like, “Sure, assist me.” So he set an appointment on the audio recording studio the place I’d report it, non-refundable, and he is aware of that I didn’t need to lose hundreds of {dollars}, set the date and he’s like, “That is the date you’re exhibiting up whether or not it’s accomplished or not.” So I did, I revised that guide. It re-recorded, it’s up to date to 2022. So I did that. Actually, actually comfortable.

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, nicely clearly the Fed had acknowledged they have been going to boost charges seven instances this yr and meaning a large and sudden slowdown to the economic 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. Thousands and thousands and hundreds of thousands of {dollars}. How about 20 million simply prepared to accumulate? We did it.
I discovered my excellent accomplice. I’m right here in Dallas proper now, able to go meet along with her. We’re going to go have a look at the acquisitions that we’re about to go after. I’m tremendous proud as a result of I received this one accomplished and I received the precise accomplice and he or she’s each a property supervisor right here in Dallas. I’ve been working along with her for 10 years. I do know her very nicely and he or she’s excited and he or she’s mainly doing her deal, which is shopping for older properties however not too outdated. They’re sort 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 transferring from California to Dallas and so they’re going to anticipate California requirements. So we’re actually making these locations good. All of the fairness goes into the fund, all of the upside and we simply share it. 75, 25 with the traders, so.

Dave Meyers:
That’s superior.

Kathy Fettke:
We did it. I’m tremendous excited and we’re making the most of this time when so many individuals are afraid and so they shouldn’t be, however they’re. As a result of folks consider headlines which we’re taking a look at gross sales volumes, I’m simply going to say this actually fast, however gross sales volumes at this time aren’t that totally different than pre-pandemic. Individuals are nonetheless shopping for and promoting properties, however you’ll be able to’t examine yr over yr knowledge. You may’t examine now with loopy, proper? You’ve received to return to pre-pandemic. So headlines know 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 possibly that different individuals are studying these headlines as a result of we’re moving into and there’s simply not competitors when you’ll be able to are available with money, it’s incredible.

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 respect you saying that, Kathy. But in addition respect all of you and Jamil, wherever he could also be making ready for his TV present launch that you simply all helped me make one in every of my annual and lifelong targets come true, so. That’s 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 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 suppose is that this a very powerful purpose you’re going after subsequent yr?

James Dainard:
Nicely, no. Crucial one is to get somewhat bit extra. So that they’re sort of counter, I received to determine the magic sauce on this as a result of I’m additionally making an attempt to get somewhat 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 precise employees and now we have a terrific workforce, develop the workforce after which be extra within the investor. As my profession as an investor during the last 18 years, it’s all the time been quite a lot of fingers 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 concentrate on 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 inside our companies, groom some folks that may take over as operators within the client and repair facet. Then I can focus extra on the funding technique facet, like constructing the precise groups to continue to grow. As a result of I do assume there’s going to be a considerable quantity of alternative for the subsequent 12 months. If in case you have the precise groups collectively, you’ll be able to actually let your cash work and develop. So I suppose the most important one is see my children and spouse extra and work much less, however nonetheless develop the companies and concentrate on the larger image. That $200 million in gross sales, I’ve been chasing this for 3 years now and I can not get there.
What I noticed is it’s as a result of I stick with what I do know so nicely and what we’re actually good at for us as a dealer and a brokerage, we solely promote what we all know very, very nicely. I received’t promote any sort of funding that I haven’t presently accomplished so as a result of we need to know bundle it, look it and assist folks work by that funding deal. We simply don’t … For instance, on warehouse leasing house, I’ve by no means accomplished that earlier than. We don’t promote that. It’s simply we need to make it possible for we’re actually serving to our shoppers by. However that’s all the time primarily based on my expertise, that doesn’t imply I can’t deliver 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 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 steady. 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:
Positively on the gross sales facet, that’s for certain. There’s quite a lot 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 fireplace. What that did is even for skilled brokers or new brokers, it A, introduced lots of people into the enterprise that possibly actually weren’t actual property folks. They have been simply making an attempt to become profitable. The second factor is, what it did is folks gotten actually lazy on their each day behavior. It began changing into too simple. Should you’re a dealer, you didn’t have to fret in regards to the advertising plan, you needed to simply throw an indication within the yard and work out feed the affords and work that deal as greatest as attainable. That isn’t promoting. That’s feeding affords and that’s negotiating at that time.
So quite a lot 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 may 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 development facet, we’ve undoubtedly 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 undoubtedly beginning to float round much more, development staff as a result of quite a lot of huge builders laid off. Lots of people are stopped shopping for their forecasting to not be transferring as a lot. So sure, the hiring is getting somewhat bit simpler. Not in all sectors.
I believe my normal advertising, accounting, these issues, these are nonetheless laborious to rent for. However our actual property trades the specialists. It undoubtedly is. So what we need to do is take this and what I’ve discovered is I solely have a lot house that I can develop that 200 million in. There’s solely so many single household leases, repair and flip property’s improvement websites that we will promote to be tangible and to continue to grow. There’s solely a lot alternative on the market. You bought to supply sufficient off market, on market. So what we’re actually doing is we’re doubling and tripling down on segments that we simply began that we do some enterprise in. As brokers, we supply quite a lot of dust 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 huge sectors. So multi-family business.
We’re simply making an attempt to develop it reasonably than simply create extra repair and flip and bur alternatives. We need 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 small business. 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 nicely. So now we’re making an attempt to develop the segments and possibly a part of my enterprise shrink somewhat bit simply to concentrate on the expansion of those. That’s what I needed to get to. I’m okay doing that.
I believe that was the most important factor I did during the last month was actually do some soul looking of, I by no means need to cease rising, however how do I need to develop and if I need to develop as an investor, then I would like to surrender a few of these different issues that create excellent earnings. That’s okay as a result of the larger image is I could be a lot simpler in our giant improvement offers, or syndicating, or lending of cash as a result of we accomplish that many alternative issues within the Pacific Northwest, you need to hold them narrowed in. Then we’re additionally making an attempt to choose up a thousand extra doorways this yr. I believe we will hit that.

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

James Dainard:
I believe there’s going to be a lot alternative. I believe we will do this. We’re going to be doing that by 10, 31 change 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 actually, with folks not shopping for greater offers, the offers are there, however we have to employees up accordingly to maintain these items. So we’re hiring proper now, like we’re shopping for a thousand doorways. I believe we will get in that.
We’re very enthusiastic about that as a result of it’s laborious to accumulate good rental property that may pay a excessive yield in Washington State. So huge targets, however you bought to have your targets huge. Your targets aren’t huge, 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 avoid wasting my cash, stick it away, and simply let that continue to grow so I can get to that magical quantity that I’ve been chasing.

Dave Meyers:
Nicely, so James, I need to ask you earlier than we transfer on, such as you stated, so your philosophy about purpose setting is to set huge targets. Does that imply, you already know you may not hit them every year? Or what’s your method to how attainable you assume your targets needs to be and what number of of them you set?

James Dainard:
I believe that’s an excellent query. I set my targets greater and I believe it relies on who you’re as an individual. Some folks like that gratification of, “Hey, I received this accomplished, verify it off a listing.” I imply, to be sincere, if I’ve a listing and I received 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 somewhat … It takes it off the fuel, I don’t know what it’s.
In order that’s not for everyone, it’s simply how I do it. Possibly it’s not the healthiest behavior, however I wish to make it to the place I’m all the time making an attempt to push myself to that code purple. Often meaning hit making an attempt to get to a purpose that I couldn’t hit or that I assumed it might be an extended shot. I’d reasonably have an extended shot purpose than a simple one. I don’t have to knock that. The larger image is what I’m chasing and if I don’t hit my purpose, I get nervousness and it makes me work more durable, smarter and do it otherwise/ it’s one of the simplest ways for me to do it, nevertheless it’s not for everyone.

Dave Meyers:
Anxiousness 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 manner an excessive amount of caffeine nervousness 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 ensure to throw in there.

James Dainard:
That’s one in every of my largest targets for 2023. Give up consuming 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 all people sits round and drinks Rockstar’s all day and simply will get anxious and like, “Oh, how can now we have targets we will’t hit?”

Dave Meyers:
Nicely, James, I completely relate, however let’s go to Kathy. I really feel like she most likely has a more healthy concept of 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 manner of calming you down as you grow old, possibly. I don’t know, you’re simply not sufficiently old but, James.

James Dainard:
I really feel like I’m getting there.

Kathy Fettke:
Oh, you begin to see the youngsters develop up and also you begin to see issues sag once you’re in Downdog. It’s similar to possibly it’s time to loosen up. Anyway, what are we speaking about, guys?

Dave Meyers:
Nothing. Present’s over.

Kathy Fettke:
Oh, I simply need to spend time with my grandson who by the way in which simply received a police automobile that the little ones guys may drive. So now each evening, he patrols the neighborhood together with his police automobile.

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 received alarms and sirens. I’m certain the neighbors love us.

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

Dave Meyers:
Yeah.

James Dainard:
Should you had that it was having Reebok pumps.

Dave Meyers:
Oh my God.

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

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

Kathy Fettke:
We normally sit down on New Yr’s Day and do it collectively as a household after which the subsequent week we do it with our firm. But when I have been to guess what it will likely be, I’ve already stated it. I’m going to have and launch essentially the most superior ladies’s mastermind. Can’t wait. That can 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 received two daughters and the youngest one’s 23 and a dream has been to work along with her, work with each daughters. So the 23-year-old got here to … I truly went to Europe along with her this summer time and he or she got here with me to Portugal to have a look at the Golden Visa program and this system we have been setting as much as assist Individuals and different individuals who have been on the lookout for a citizenship. Krista was with me in Portugal, fell in love with Portugal, fell in love with the thought of the Golden Visa program. She wished to do it. So now she’s working for Gateway Portugal which is a good friend 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 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 all people, however quite a lot of instances you need your children to work and your small business 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 notice you’re the perfect and so they 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 large one is working by a number of the tasks that I began years in the past which have been difficult. Now we have floor up improvement tasks, so it is a powerful time for builders. So my purpose is in fact to do as greatest as I can for our traders. We truly bought out two of our subdivisions early this yr, so the timing was nice, however we’ve received three extra. So simply giving all of it the whole lot. I’ve received creativity, advertising, working, like I stated with our high-end luxurious properties. We’re working with the shared trip mannequin with Ember Houses, which is like Picasso. And that’s only a phenomenal mannequin the place folks can have these trip properties 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 house. It’s a waste of land for folks to have these trip properties they don’t use. I imply the place I dwell in Malibu, it’s 50% occupied as a result of all these wealthy folks personal properties which can be empty and that’s not nice. So it is a technique to share that in order that there’s shared possession in these trip properties. You get your days. So issues like that. Actually discovering alternate options to the tasks I’m already in to do the perfect I can for my traders. Now what Wealthy would say is make it good. 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 fashionable 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 must be taken to realize it. M is for measurable. I believe that is tremendous essential.
Clearly, I’m a knowledge nerd, however quantifying your targets makes it simpler to trace your progress. You have got to have the ability to hold rating if you wish to set a purpose. A is achievable. So James, I don’t know in case your huge targets would fall into the SMART targets, however I prefer it. Achievable, however formidable needs to be the A. R is related in order that it’s truly essential to you and that it’s essential to your huge image. T is time-bound, which I believe is de facto essential too. You need to give your self a deadline. So in the event you’re involved in purpose setting and need a framework, SMART targets is a very, actually great way to do this.

Kathy Fettke:
Dave, that’s why I didn’t accomplish the mastermind one. I used to be like, “Yeah, I need to do a mastermind, however I didn’t make it SMART. I wasn’t particular. I didn’t say many. I didn’t say precisely what that may seem like.” So you possibly can say that I achieved it as a result of I did have one, however that’s not what I actually had in thoughts. However what I had in thoughts, I didn’t write down.

Dave Meyers:
Completely. As a result of I suppose the method of doing a SMART purpose is quite a lot of the work it’s essential accomplish your purpose. Should 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 quite a lot 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’ll be able to concentrate on 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 hold them easy. So I sort of simply carry over the identical targets after which both modify 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 subsequent yr. So we’re nonetheless seeking to purchase 15 doorways, we’re nonetheless going to do about 15 flips. Need to hit that 1.2 million quantity. I do have targets round hiring folks this yr as a result of we’re simply nonetheless a small operation. I nonetheless do acquisitions. My spouse is our property supervisor, my handyman is my sister-in-law, proper? I employed a social media supervisor this yr so I may take social media off my plate so I may focus extra on the precise enterprise of investing in actual property. So subsequent yr I need to rent … We’re going to usher in someone 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 got them. Proper? So it’s essential 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 just isn’t solely do I write them down, however I write them a number of instances a day. So on daily basis once I get up within the morning, I work out after which I sit down and I write my targets over and over. 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 over and over as a result of for me, it’s a mindset hack and other people get little flu, flu once you speak about mindset, however for me a mindset is a psychological device to assist me keep bodily disciplined with the duties. So me writing them on daily basis is de facto 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 once I’m time blocking, I’m ensuring that I’m blocking time and dealing on issues which can be related to these targets. One other factor that I do is I put my targets in image kind after which I’ll save them as a imaginative and prescient board on the house display in my telephone, simply in order that … I received your telephone in my hand all day.
So each time I am going to unlock my telephone, I can see my imaginative and prescient board. It helps me 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 transferring me nearer to one in every of these targets on my telephone, 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 concentrate on these fires. However typically what I’ve seen is all these fires aren’t actually fires and all these fires don’t actually take me to do one thing.
Generally it’s a hearth that someone 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 huge of a deal. So it helps me to remain centered. It helps me to all the time keep in mind the issues I must be engaged on must be pushing me in direction of these targets. Then I additionally like to write 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 facet, on the sticky notice, I’ve received targets written down over and over. On my workplace at house, 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 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 own home with them?

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

Dave Meyers:
Man, my lock display on my telephone is only a image of a fried rooster 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 hold inside my bathe are power drinks. So how does sticky notice 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 fascinated with getting a cooler for my bathe so I may simply have a chilly quick power drinks as quickly as I get in.

Dave Meyers:
Nicely, in the event 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 can be supposed to remain not room temperature. I don’t know, however I’m like, hmm, I may most likely toss a beer or two in there, possibly.

Dave Meyers:
Okay.

Henry Washington:
Proper.

Dave Meyers:
All proper. Nicely, these appears like some formidable nice targets. Is there another ideas any of you’ve gotten or ideas on purpose setting that you simply 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 sort 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 received the loud mouths who give you concepts and so they 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 definitely overview your to-dos, that was presupposed to be accomplished final week. So all people is held accountable as a result of it’s on the software program and doesn’t get shot, checked off until it’s accomplished and also you’ve introduced it and you then 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 must be mentioned and so they all get put in right here. Then as a gaggle, you progress to the highest, the problems that your entire group desires to speak about. There’s a timer on it.
So that you don’t have individuals who simply dominate with their concept that no one cares about. what I’m saying? There’s all the time the loud mouth and that could possibly be me. So this simply retains it on observe. Anybody can name out and say, “Hey, it appears like that is one thing for a subgroup. Should 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 suggest Ninety.io as a result of it takes the imaginative and prescient originally of the yr and breaks it out into quarterly steps. What’s the primary chunk of this elephant? What’s the very first thing we have to do? Then you definitely take that quarterly 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 will help you obtain your targets is … So like people, we’re all naturally pumped about our targets originally of the yr as a result of all people on Instagram, all people on YouTube is all speaking about targets, plan your targets, set your targets, new Yr’s resolutions, there’s all these items which can be telling us let’s prepare for the brand new yr. So we get centered for just a few months after which life occurs, issues occur, then we decelerate, possibly we get off observe. 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 may 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 it’s essential 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 sort of like some individuals are best within the morning after which they path off. So that they reap the benefits of the mornings and so they attempt to be as productive as attainable in order that in the event that they path off, they nonetheless get quite a lot of issues accomplished. 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 may be tremendous strategic, plan out these first 90 days and when you’re nonetheless motivated about getting your targets accomplished, you’ll have the ability to accomplish far more of these duties since you’re feeling like that’s what you have to be doing earlier than life smacks you within the face after which it’s essential throw your targets out the window anyway.

Dave Meyers:
That’s a terrific tip. Yeah, it’s like plan to have a plan and plan for the fatigue and perceive that that’s simply human nature.

Henry Washington:
Proper.

Dave Meyers:
Nicely, I like all the following tips, I like these targets. I actually respect that each one of you mainly stated along with monetary targets have way of life targets too. I imply, most of us make investments for causes which can be simply past simply making some huge cash, but in addition capable of do issues which can be fulfilling to you as nicely that you simply really feel are essential and significant. That’s essential for purpose setting as nicely. I’ve one final purpose setting query for you guys. Should you may 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 make it possible for David Inexperienced wakes up very unhappy once we take over the primary spot. Nothing in opposition to David Inexperienced, however typically you simply received to do one thing to someone cereal and take over that primary spot.

Dave Meyers:
We received an extended technique to go, however I just like the ambition of that purpose.

James Dainard:
Yeah, that’s what I’m saying, set huge 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 record?

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 doing a little analysis. I Googled high actual property podcasts just a few months in the past, nicely into available on the market, 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 now we have to do to make her high podcast record for subsequent yr.

Kathy Fettke:
So the funniest factor is I didn’t even know that record existed in the perfect half was that one way or the other my present isn’t primary. I’m like, “That sounds sort of self-serving.” Anyway, we will need to have a terrific web optimization particular person because-

Dave Meyers:
Completely. Excellent.

James Dainard:
I additionally discovered that record too. So that you do have an web optimization, good web optimization particular person.

Kathy Fettke:
I’ll have an excellent dialog along 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 no less than within the high 5 for investing exhibits. I believe we will undoubtedly do this. Hopefully make two Dave’s cry. Let’s get David Inexperienced unhappy and Dave Ramsey unhappy sooner or later. If we may dethrone these two, we’ll know that we’ve completed one thing nice.

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

Dave Meyers:
Oh, wow. That’s so humorous. Yeah, all Dave’s. 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 respect all of you for all your assist for giving us these good critiques, for sharing it with your mates. 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 belongings you take heed to most on Spotify, and I used to be seeing lots of people submit 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 actual charts, we have been in high of the BiggerPockets charts and above Dave Ramsey on a pair folks’s particular person lists no less than.
So we respect 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 respect 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 will join with you. Kathy, the place ought to folks discover you?

Kathy Fettke:
Nicely, most likely the simplest is on Instagram @Kathy Fettki or at realwealth.com.

Dave Meyers:
All proper, James?

James Dainard:
You could find us on Instagram at jaydaneflips or try jamesdainard.com for only a bunch of free movies. Me strolling by nasty Homes.

Dave Meyers:
Henry, what about you?

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

Dave Meyers:
All proper, nice. You could find me both on BiggerPockets or on Instagram the place I’m on the Information Deli. Thanks all a lot for listening to this episode On The Market. We’d love 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 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, modifying by Joel Esparza and Onyx Media, researched by Puja Gendal, and a giant because of your entire BiggerPockets workforce.
Nicely, content material on the present available on the market are opinions solely. All listeners ought to independently confirm knowledge factors, opinions, and funding methods.