New year New Goals

Well its Monday January 3rd the first working day of the new year. Time to break those old habits and get down to business. Time to set those goals just wondering what everybody else has set for there goals?

My goal this year is to purchase brand new homes and assign them to another buyer. However, I need to talk with someone about this strategy. How do you post something on this website? Thanks, have a great day!


Today is January 9 and you have only had one response so far. I wonder why you have not gotten a better response.

To everyone else:

Setting goals is the first step in any results oriented plan – business plan, financial plan, retirement plan, etc. Without goals you have no way of knowing if you’re working smartly.

Goals are not actions, but rather achievements; goals are results. Goals are measurable. Once you have your goals established, then identify the actions you can take to achieve your goals.

Just to get everyone started thinking the same way, here is what I wrote a couple of years ago for my 2003 annual plan, and my report card. I had the same goal set for 2004, and I am still working on my report card.

Investment Plan for 2003

[b]We can only declare success if our goals are achievable and measurable. In this vein let me say that my annual goal is to increase my net worth by 5% over the previous year.

Since I am primarily a landlord, investing in rental property, objectives that will help me achieve this goal are:
[]Reduce debt. []Increase Cash Flow.
Some actions that I might consider in reaching my objectives are:
[]Make extra principal reduction payments each month,[]Use 1031 exchange to improve the quality of my portfolio when an exchange will increase my equity position or cash flow
[]Acquire more rental property[]Refinance current debt to lower debt service[]Increase rents[]Take proactive steps to reduce vacancy rate
As I look at where I am today, and what I can do immediately to accomplish my objectives, success may in part depend upon my ability to acquire property below market and to finance it quickly. The buyer likely secures the best acquisition opportunities when he has the ability to quickly bring cash to the deal. To gain this ability, I plan to secure a working line of credit.

During the coming year, I will increase rents as leases come up for renewal, and, an increase in my tenant relations activities will hopefully reduce turnover. Excess cash flow will be applied to principal reduction.

My report card for 2003

[]I exceeded my goal of a 5% increase in my net worth. At the end of the year 2003, my net worth had increased 23.45%.
]My liabilities (debt) declined by 3.29%, while my annual cash flow increased 22.23%. [*]My Debt Coverage Ratio increased from 1.84 to 2.0.

Specific accomplishments.
[]I applied for and received an open working line of credit from my bank. (supports future property acquisition)[]I increased the amount I contribute monthly to principal reduction. (Supports increase in net worth).[]I gave my tenants monetary Christmas gifts to express my appreciation for timely rental payments during the year and for their care in maintaining my property (supports reduced vacancy, increased cash flow)[]Modest rent increases incorporated in each lease renewal. Rents are still below market tops (supports increased cash flow, tenant retention).[*]Acquired one new property for my rental portfolio. Property was a HUD foreclosure that needed some rehab. This property acquisition added liability; otherwise debt reduction would have been considerably better than 3.29%

Awsome post Dave T! It goes direclty with my theory that if you do what you’ve done!!! You will get where you got! Only One thing more important then setting your goals AND THAT IS WHAT?

Acheiving Those goals!!

Wow! I really don’t have anything THAT impressive to post about but I will say that FEAR is my Goal, not for this year, for this MONTH

I figure if I can Master Fear for the next 21 days, then the next 11 months should be a breeze :wink:

Thats my theory & I’m sticking to it! :-*

I set my short term goals although not as specific as the one above.

1-*Educate myself and pick a track, stick with it for now. Now that I know I will not need to know everything anyway, the fear is mostly gone.

2-*Funding, Find a primary and backup lender.
Found one HML that offered workable terms and the other more inflexible broker is working with me on my credit to raise it 40 or 50 points. Also got a new credit card just in case. :wink:

I found a lender that would work with me, half the battle.

3-*locate properties - This is the toughest to me. Working 3/4-time makes this very difficult. Having little to NO experience evaluating properties is not helping either. I NEED HELP ON THIS, and not from a realtor. My lender will only fund habitable properties, no heavy rehab…which is fine because I am targeting duplex/triplex for starters and possibly SFR’s if I can get them at 65%.

4-*Make offers

I know it seems light in the arse to most experienced investors but this is what I could come up with.


These are all great action steps, but what goal are you working toward? Do you want to acquire one rental property this year? Do you want to flip or assign one or two properties for a $10K total profit?

Identifying your goal will help you focus your energies.

My goal is to purchase one multi-family unit OR 2 SFR’s this year . …2005.

I want to leverage the equity for future purchases…and a little cash flow wouldn’t hurt.

Is it possible? Well see…

Had to pull this out of the archives hope you do not mind! WHAT A GREAT YEAR :dance2:

What are every ones goals this year ?

Here are mine!

Work less then 2 hours a day 4 days a week (MONDAYS ARE OUT)

Pay all houses down to 65% (LTV)

Buy at least 10 more personally,

wholesale at least 20 a month.

Increase monthly income by at least 12k per month…

Oh yeah and not to miss any episodes of THE PRICE IS RIGHT!!

haha sounds good Robb sounds good!
My goals are to have at least few deals by March,
Start automating things by the mid-end of the year.
Quit my job when I am able to.
Also want to have a few rentals by the end of the year.

Last but not least, get the chance to have a few beers with you!
and others from the forum community.

Thanks for bringing this up I’ve been working on setting goals but I’m not very good at it!

The main thing I want to accomplish is overcoming the fear of Investing. It probably sounds dumb but that is my main problem.
I have a lot of negative thinkers around me and it’s hard sometimes.

Ok any way so far the goals I have are;

1-2 months Bird dogging to find at least 10-20 deals for someone else :frowning:
(At least I’ll get some experience!)

2-6 months Wholesale/flip 10+ properties (Save up CASH!)

6-12 months Continue Wholesaling but also keep any good ones to rent or fix and sell myself.

So thats it, pretty simple. Im still working on my plan to get there…


These are great action steps toward some goal.

Perhaps your annual goal is to increase your net worth by 10%, or maybe your real goal is to increase your monthly income by $12K. I see all the other things you have listed as actions that may help you reach that goal.

Happy birthday!!

Since I posted my annual report last year, I thought I would do it again this year. I believe in evaluating performance against goals, adjusting actions or specific objectives as needed.

Dave T: 2005 Annual Report

Goal: Increase personal net worth by 5% over the previous year.

Specific Objectives:

Since I am primarily a landlord, investing in rental property, objectives that will help me achieve this goal are:

[]Reduce debt.[]Increase Cash Flow from rental activities
Supporting Tasks:
[]Make extra principal reduction payments each month.[]Use IRC Section 1031 exchange to upgrade my rental property portfolio when an exchange will increase equity position or cash flow. []Acquire more rental property. []Refinance current debt to lower debt service. []Increase rents. []Take proactive steps to reduce vacancy rate. [*]Maintain or increase working line of credit.
Specific Accomplishments

  1. Renewed open real estate credit line. (supports future property acquisition)

  2. Maintained monthly contributions to principal reduction. (Supports increase in net worth through debt reduction).

  3. Gave my longer term tenants monetary Christmas gifts to express my appreciation for timely rental payments during the year and for their care in maintaining my property. To qualify for a Christmas gift, tenant had to have at least 12 months in the property and property had to pass inspection. (supports reduced vacancy, increased cash flow)

  4. Modest rent increases incorporated in each lease renewal for existing tenants. Due to soft rental market, two vacant units were leased without a rental increase. Slow rental activity and increased rental competition kept one unit vacant for eight months this year. Rents are still below market tops (supports reduced vacancy).

  5. Exchanged one condo for another condo. Increased equity by $40K. Replacement property is new construction and will generate 50% more gross rental income than was contributed by relinquished property. Settlement on replacement property occurred June 2005. Property, currently advertised for rent at $950, was transferred from investment rental portfolio to spouse.

  6. Sold one property in September 2005 and opened a 1031 exchange. Two replacement properties will settle in January 2006. Replacement properties will add an additional $80K to equity and generate higher rental income than relinquished property.

Performance Summary

I exceeded my goal of a 5% increase in net worth. At the end of the year 2005, my personal net worth had increased 49.67 %.

Increased property values are largely responsible for the bulk of this increase, though year over year increase in the market value of securities holdings did make a small contribution.

Debt increased 1.96% due to new property acquisitions and a cash out refinance on one property.

Proposed Actions For 2006

  1. Use portion of funds from cash out refinance to pay off two other leveraged properties to increase working capital with a neutral impact on monthly cash flow. Plan is to increase principal payment each month so two additional properties are free and clear by end of year.

  2. Use balance of funds from cash out refinance as down payment on a new property currently under contract at pre-construction pricing. Intent is to flip in late summer 2006 for $35K profit.

  3. Use any increase in cash flow to replenish replacement reserves and to add to operating funds. Operating fund requirement will increase when mortgages are paid off since property taxes will no longer be escrowed.

My 2006 goals are:

  1. Get expert advice and bulletproof my assets
  2. Breakdown one corporation and start another
  3. Examine and update my trusts, all insurance policies, phone services, etc.
  4. Learn more about the tax code and the law regarding my IRA because
    I can start withdrawing next December
  5. Hold on to all rentals except the one year L/O I will do in Phoenix.
    Continue making minimum Option ARM payments and secure another
    line of credit in TX.
  6. Preserve my remaining cash until my other investments kick in.
    Use credit cards with a 0% interest for a year then transfer
    those balances to another credit card that’s 3.99% fixed forever.
    Then pay that off within 1 year.
  7. Clean up this messy office and garage, start getting some more exercise
    and put balance back into my life. Work hard, play hard
  8. Spend more time with my family. Call all my best friends and tell them
    that I love them.
  9. Make plans for my next big project to help others in need.
  10. Cash in some notes, sell some stocks and start traveling again 8)

Here are my REI goals for the 2006 year.
This needs some tweaking as I spent a
grand total of about 10 minutes on it.

Purchase at least one new property per month.
Out of these 12 (at least) purchases:
4 rehabs (sell the rehabs)
4 wholesale assignments
2 lease option
2 rentals

Purchase 80% of properties through FSBO and seek
financing through each owner, thus reducing brokerage
costs and points associated with purchasing through private lenders.

Make positive cashflow through rehabs and wholesale
assignments of at least $50,000.

Make positive cashflow through rentals of at least $200
per month.

Attend local REI meetings.
Make a bunch of friends along the way.
Spend 2 hours minimum each day on REI (most Sunday’s off).
Structure a business in either LLC, Land Trust, S-Corp (I need help in determining which is best) for tax and liability issues.
Get my wife involved (she is working towards her CPA).
Read at least 1 REI book/ebook each month.
June 3rd, 2006 will be my last day at the j.o.b.
Make mistakes and learn from them.